Making cosmetics is a multi-billion dollar industry. But you don’t need an expensive laboratory or a university degree to start a successful and high profit cosmetics business. In fact, a cosmetics business can be set up for much less than the cost of many other less profitable ventures.
You’ve probably read many success stories of young entrepreneurs who started out as home-based cosmetic makers and went on to become the names behind some of the most popular and successful cosmetic companies in the beauty industry today.
If you think cosmetic manufacturing requires a sophisticated and expensive laboratory, this is incorrect. This is just one of the common myths you will hear about starting a cosmetics business.
You can start a high profit cosmetics business with basic equipment for low start-up cost. And you don’t need to be a cosmetics chemist — this is another common myth. If you obtain professional cosmetic formulations and manufacturing instructions, you can easily manufacture cosmetics, skin and hair care products of the same quality as leading brand formulations, if not better, without spending three or four years in university studying for a science or chemical engineering degree.
However, to start a profitable and successful cosmetics business it is vital to use only professionally created formulations – not home based recipes. Homemade cosmetic recipes may be suitable for home use, but they are not suitable for retail sale.
Making cosmetics is one of the most profitable businesses on earth — profit margins easily reach 1000%. Products which retail for $50 usually cost between 50c and $3 to make!
However, in order to make these kinds of profits, you must own your cosmetics formulations, so as to be able to manufacture your range of cosmetics yourself.
If you contract a laboratory to manufacture cosmetics for you, much of the profit will go into the pocket of this cosmetic manufacturing company — not yours.
If you own your cosmetic formulations, you will be in control of your business. You will be able to choose your own cosmetic ingredients suppliers, negotiate better deals, formulate your own top quality recipes comparable with any international brand, make any size order you require without the restriction of minimum quantities, etc. When you own the cosmetics formulas, you can even become a private label cosmetics manufacturer.
What are private label cosmetics?
Many businesses — hair, beauty and spa salons, plus many others — are increasingly becoming aware of the value in selling and promoting their own brand products, carrying their own logo on their own label.
Why? Because, when they promote their own brand, they increase customer loyalty to their own products and their own business – not an international company that sells its skincare, haircare and cosmetics formulations in hundreds, if not thousands, of other salons, pharmacies, department stores, etc.
When you establish your own cosmetics business, you can manufacture cosmetics, skincare, haircare and toiletries for other retailers as a private label manufacturer, as well as wholesaling and retailing your own range of cosmetic and beauty products.