Reduce cost of cosmetic and food products should be handled carefully as improper management can result in significantly reduce costs, product failure and products not meeting your customer’s expectations.

An effective cost reduction strategy is to understand the full costs of the product.
When you’re making a product, there are many aspects that will play into the final price of your product. With higher costs for packaging and raw materials, it’s difficult to know how to keep prices low. Fortunately, there are some ways that can help you reduce cost: buying in bulk and having the factory mix and assemble.

I would calculate the ceiling price based on publicly available costs from marketplaces such as amazon, ebay, lazada & shopee to indicate the ceiling cost of my product.

Buy in bulk

One of the most effective ways to reduce the cost of your product is to purchase in bulk. Depending on the product, this may not always be possible. For example, if you were manufacturing a food product, you might want to buy ingredients in bulk so that you save on packaging costs. However, for many cosmetic products it would be possible to buy in bulk. Buying in bulk will allow you to purchase more at a given time for lower prices.

It’s also important that you get your raw materials and packaging right before sending them off to the factory. This will make it easier for them to do their job by minimizing time spent on sourcing these elements, thereby saving further costs.

Have the factory mix and assemble

The next way to reduce cost is to have the factory just mix and assemble your product. This will allow you to save on packaging and materials. However, it will also increase your raw material holding costs. The cost of your products could rise as a result of such an investment in raw materials, which might not be desirable if this is a start-up business.

Reduce raw materials costs by finding cheaper suppliers and buying in larger quantities

The raw material cost of your product could be reduced by finding cheaper suppliers and buying in larger quantities. For example, if you’re ordering a few pounds of ginger root, it might be cheaper to order one hundred pounds instead.

This is because the prices will usually increase as the quantity gets larger; this is because more materials are needed for bigger orders.

Reducing your raw material costs will also help with lowering shipping costs, as shipping is often proportional to product weight.

Find a way to increase your product’s value – for example, make it organic or add more features like free shipping or express delivery

You can also improve the margins of your product by having unique selling points such as natural or organic. You will need to charge a little more for this type of product and improve on the distinguishment of the product compared to others.

Conclusion

The best way to reduce the cost of your product is by figuring out how you can get more for less. If that means buying in bulk, or arranging a deal with a factory to mix and assemble on their own, then it’s worth considering. This article has provided some helpful tips about reducing costs when making products like cosmetics and food items through strategic planning and partnerships with factories that help streamline the process. Keep these neuroscience sales tips in mind as you work towards lowering your production costs so that customers will have an easier time finding what they want at a price point they’re comfortable paying!

To understand where and what reduces cost on.

Understand the full supply chain for your product from the estimated costs of your raw materials to packaging, contract packing fees, registration fees, warehousing fees up to retail margins.

Furley Bioextracts has been in business for 15+ years, has combined experience of 50+ years experience in manufacturing creating over 10,000+ formulations. Certifications include ISO22000, ISO13485, cGMP, HACCP and Halal

We work with small microentrepreneurs to large multinational companies to develop their products.

We are a contract manufacturer, OEM, business partner, mentorship that specializes in manufacturing food, cosmetics, traditional, capsules, medical devices and supplements. We serve clients from all around the world including Asia-Pacific, Europe, Middle East/Africa and North America regions.