Business Arrangements that Help Companies Earn with Minimal Investments

Co-packing is a business arrangement wherein a company engages the services of another to manufacture and package its products. It is estimated that around 50% of the products in supermarket shelves are produced through co-packing arrangements.

The range of co-packing services cover a wide area of industry, from facility rental to more complete line of services that include manufacturing, packaging and shipping.

Advantages of Co-Packing

Manufacturing involves substantial investments. There are the facilities and labor costs to think about.  Companies lacking financial resources for this kind of investments do not stop operations. They simply rent facilities of a co-packer or allow it to handle the entire manufacturing process, reducing for themselves the cost of putting their goods in the supermarket shelves.

Companies benefit from a co-packer who is highly experienced in their line of products.  This means they do not have to spend for training which significantly reduces production costs.  They also benefit from the packing and shipping processes already established by a co-packer.

Benefits of Private Labeling

Private labeling is another business arrangement that enables many companies lacking in resources to put their products in the supermarket shelves.

The arrangement often involves allowing another company more experienced in marketing to sell the product under its own labels. This happens all the time. Even bigger companies finding its resources tied up in other product lines take advantage of the benefits brought by private labeling. They avoid all expenses related to marketing – product promotions, developing sales force and outlets, adjusting delivery processes.

Co-packing and private labeling arrangements mean even start-ups do not have to wait for the time when they have accumulated enough financial resources before they can put their products in the market. In fact, by combining the two, they can earn considerable profits without investing a lot. They have to be selective,however, in choosing co-packers and private labelers, making sure the partners they choose possess the necessary experience. If they can find a partner able to handle both arrangements, then, they have less work to do while earning respectable returns.

Check out Food Trade Consultants, who can help you with everything you need or your own catering outfit. Foodtradeconsultants can help you even if you are just a home cook looking to hone her talent and then make a business out of it.

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