additional question for this topic.
how will you deal with suppliers that don't have bfad permit? puwede ba iyon? since mag rerepack lang naman, so no need to get bfad. kasi, its the manufacturer's concern to get the bfad, right? pero nowadays, there are tons of backyard manufacturer of this shampoo, conditionaire, soaps, etc. ok lang kaya iyon? alam ko, its better to get supplies from manufacturer with bfad permit. pero hindi natin maiwasan yun mas mababa na cost from mga walang bfad.
please help with matter naman... thanks!
The BFAD permit, though not a guarantee of food safety or quality, is a preliminary step towards ensuring it. A repacking operation actually still needs a BFAD permit since it is considered as a step in the manufacturing process. You are considered as an independent agent, hence, you are free from registering the product (if it does not carry your brand) but you will need to get a License to Operate (LTO).
Stepping back a bit, we can see why the laws legislating the BFAD permits was created: there is a large possibility of contamination of dangerous chemicals in a lot of products that can in turn harm the public at large. For example, if someone manufactures liquid soap (that you will repack) makes the mistake of getting a pH that is above the normal value (very common mistake), it can potentially harm as many people as the number of products you re-packed. IF you repacked for 10,000 sachets, you have the potential to harm 10,000 people easily. A person who holds a BFAD permit will normally have the technical know-how or has a staff that checks the critical parameters, at the very least.
The reason why people with BFAD permits costs more is because there is a considerable investment in safety and technical know-how that people without BFAD permits usually do not have.
On the business side, you are limiting your markets also without BFAD permits. You will be able to sell to small-volume people, but you will definitely not be able to hit the large-volume institutional customers. The money is in here since your unit overhead costs becomes lower as your volume becomes larger, hence, increasing your margins.