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So for context, I posted on here several times over 2024 talking about (ideas) I've had for protein-related businesses and how I could best execute them. Those were ideas; now it's a business. I'm building up a clear & healthy protein powder company in the U.S. I have been working with a manufacturer to formulate and do the R&D process since about August. We've been going through many revisions trying to get that perfect formula and taste. I'm still waiting on my final revision (hopefully but most likely). This manufacturer also just raised my per unit cost from $36/unit to $43/unit blaming raw material costs and increased labor for smaller order volumes (144).
The problem that has come up is I (stupidly) assumed that once the flavors were perfected I would ask for the full ingredient list and nutritional info and take that to other manufacturers to get quotes, then come back and use those quotes as negotiating power with my current manufacturers to get a cheaper price per unit. I have been told that 50% of the 144 MOQ total order value needs to be deposited first to get the that info I wanted. Obviously, this defeats my whole idea of getting negotiating power. They do not do any kind of payment plans. They also do not offer any white labeling services.
So where in the process am I at currently?
I'm a standstill where I need to decide from my (seemingly) only 2 options: White label one protein powder SKU from a different manufacturer then after proving sales, use profits to pay for the private label formulas I've been working on all this time (or from the white labeling manufacturer) OR... save up and grind up to just finish and order the private custom formulas from my current manufacturing contact.
I'm a college student in my last semester, so I don't really have any extra funds considering 95% of all income goes to bills and necessities. I work 3 jobs right now and am okay waiting to kickstart this with full-time income after I graduate but then again, starting smaller with white labeling could be the move to get some sales under my belt earlier on this year. I'm posting this to really just get a gauge of what you all would do in my situation.
TLDR: Do I save up for a private labeled protein powder or white label a similar product then transition into my custom formulas after proving sales?
The problem that has come up is I (stupidly) assumed that once the flavors were perfected I would ask for the full ingredient list and nutritional info and take that to other manufacturers to get quotes, then come back and use those quotes as negotiating power with my current manufacturers to get a cheaper price per unit. I have been told that 50% of the 144 MOQ total order value needs to be deposited first to get the that info I wanted. Obviously, this defeats my whole idea of getting negotiating power. They do not do any kind of payment plans. They also do not offer any white labeling services.
So where in the process am I at currently?
I'm a standstill where I need to decide from my (seemingly) only 2 options: White label one protein powder SKU from a different manufacturer then after proving sales, use profits to pay for the private label formulas I've been working on all this time (or from the white labeling manufacturer) OR... save up and grind up to just finish and order the private custom formulas from my current manufacturing contact.
I'm a college student in my last semester, so I don't really have any extra funds considering 95% of all income goes to bills and necessities. I work 3 jobs right now and am okay waiting to kickstart this with full-time income after I graduate but then again, starting smaller with white labeling could be the move to get some sales under my belt earlier on this year. I'm posting this to really just get a gauge of what you all would do in my situation.
TLDR: Do I save up for a private labeled protein powder or white label a similar product then transition into my custom formulas after proving sales?
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