The growing popularity of Home Wellness products and Outdoor Recovery products has prompted many independent online sellers and wellness brands to pursue Private Label Sauna projects. However, a common cause of poor sourcing practices has been rushing into a bulk order for a sauna manufacturing project before fully understanding what type of private label customization can be offered by a given manufacturer and what cannot. The result can be significant unexpected rework costs, shipment delays, mismatched finished goods, and/or compliance issues in the market where the sauna is intended to be sold.
There are generally 2 tiers of Private Label Customization in the Sauna Manufacturing Industry Light Customization and Deep Customization. Light Customization includes, but is not limited to, logo engraving/silk-screening, custom colour boxes, user manuals, warranty cards, nameplates, etc. Light Customization is generally available from most established factories with a low minimum order quantity (MOQ) and short lead time. Alternatively, Deep Customization may require extensive changes such as the wood grade/species, cabin dimensions, glass style, heating module, control panel, ambient lighting/audio, internal bench layout, voltage/plug configurations, etc. Some changes to the structure of a sauna will require creating new tooling which dramatically increases both development fees and sampling timelines as well as increasing the MOQ.
There is a common misconception among buyers that private labeling allows for unlimited customization options. Many buyers will learn during the sampling process that their supplier is unable to accommodate requested changes such as relocating heating panels, sourcing their preferred wood type and/or updating compliance certificates for their sales region. As a result, at this point, the buyer has no choice but to take the standard model or take on a very high tooling cost combined with significant delays.
Sourcing Specialists recommend assembling a checklist in advance of entering into a private-label sauna program. The checklist should include four key points that are verified with suppliers:
1. Separate out free custom options, paid custom options and items that cannot be modified. For every custom option requested, write down any additional costs associated with them, lead times for sampling and the minimum order quantity.
2. Verify whether any custom modifications will keep the certifications associated with the product valid. In North America, UL or ETL certification is needed. In the EU, CE and REACH certification is required. It is critical that any custom modifications made comply with the voltage and plug standards for the market to which it is being sold. Custom modifications made to any electrical components or materials could cause the loss of any existing certifications. This is something that many new buyers overlook.
3. Formalize the sample approval process. All custom options (logo placement, method of printing, wood grain and accessories) should be confirmed and locked with a signed sample prior to mass production. All agreed custom option specifications should have agreed tolerance limits for mass production.
4. Include a Change Order clause in your sales contract. Specify clear pricing guidelines for new custom requests made during the production process, as well as guidelines for timeline changes and remedies for bulk goods that do not conform to the approved sample. Relying on a vendor's verbal agreement creates a high potential for disputes.
A common red flag to look for is the number of suppliers that will initially claim to support full customization for their customers, yet ultimately only offer logo and/or packaging changes as part of a Customization option. These same suppliers will only disclose their structural limitations once a deposit has been received. Sourcing from manufacturers that provide Engineering Drawings, pre-production samples and phased confirmations is the recommended method for resolving product development issues with suppliers.
Our suggested workflow for Private Label Sauna projects to help you achieve consistent costs, timelines and quality is as follows: (1) Develop a written list of your Brand Identification Requirements for your Sauna, (2) Review all Customization Options, Costs and Restrictions with factory, (3) Sign off on your approved samples and (4) Commence production of your sauna in bulk quantities. By clearly defining your parameters prior to placing your capital at risk you will be able to avoid the majority of hidden pitfalls associated with sourcing Private Label Saunas.
