Copacker Retainer Fees

BS or Business?

Author

Joshua Palacios
April 26, 2024 • Estimated Reading Time: 3 minutes

Today’s copacker feature ⬇️

Ko-Pack

Need a US-based skincare manufacturer that offers formula help, handles both small batches and large-scale production AND has USDA Organic certification?  Ko-Pack could be the answer.

Why Ko-Pack?

  • Science & Quality Focused: They mention lab partnerships, testing, and certifications.

  • Formula Support: Great for brands needing custom skincare or haircare products.

  • Scalability is Key: They can grow with a brand, from launch to big retail.

  • Arizona Location: Taps into that healthy, 'clean beauty' image for some brands.

  • Beyond Just Skincare: Their diverse product lines (men's grooming, etc.) offer expansion potential.

Learn more here → Comanufactured Listing

Need a quote? Send them a message here → DM Them 

So let’s talk copackers and retainer fees. Wait? Retainer fees? I’ll explain…

I recently stumbled upon a discussion about copackers charging retainer fees for project quotes. If the brand moves forward, the fee is credited back. If not, they're out the money.

A lot of copackers responded to the post in favor of this. Some said this was typical. 

I’ll let you dive into the details of the post if you want, but I call BS. This type of practice, if it became common, would be harmful for the industry. Particularly for smaller brands.

Look, I get it. Quoting projects takes time and effort. But in my 14 years in procurement, I've never encountered a retainer fee for a quote. It's part of the cost of doing business.

I spent the past week trying to quote a project for a large beverage brand. I exhausted my manufacturing network. We couldn’t quote due to a few key requirements for the brand. 

Did I waste my time? Absolutely. Did the copackers waste their time? Absolutely. 

But I was honest with the brand and told them we couldn’t do it. I outlined the reasons why and I referred them to another manufacturer that can likely do the job. That’s how it goes. 

Sure, sometimes quotes don't turn into orders. That's the nature of sales. But the solution isn't to nickel-and-dime potential customers. It's about providing such exceptional service that brands WANT to work with you, not feel pressured.

Imagine if every online store charged you just to browse before you could buy.  That's what this feels like.

Brands have the right to shop around. It's the job of copacker to give them a reason to stay.  Focus on building relationships, offering competitive pricing, demonstrating expertise – THAT'S how you win business, not with questionable fees.

If you're a copacker struggling to provide stellar service, let's talk. There are better ways to provide an exceptional experience for brands, one of them being Comanufactured! 

Oh yes, I do have one more call to action. If you’re a protein or supplement brand, I’ve partnered with an amazing copacker. We can turn around a quote for you quickly and provide exceptional service. Drop me a note if interested or submit a quote here!