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What to Know Before Switching Custom Label Manufacturers

By Lori Campbell  |  Oct 15, 2026

What to Know Before Switching Custom Label Manufacturers

If you’ve just been handed label sourcing for the first time, you might assume switching custom label manufacturers works like switching any other supplier: Get a few quotes, pick the best price, and move on. It’s an easy assumption to make, and it rarely holds up once the transition actually starts.

Switching custom label manufacturers involves more than sending your artwork to someone new. Vendor qualification, tooling, material testing, and packaging requirements can all complicate the transition if they aren’t identified upfront.

This does not mean switching is a bad idea. Knowing everything that’s actually involved, beyond what it costs, is what turns switching vendors from a guess into a decision you can walk into with confidence.

Key Points:

  1. Vendor qualification and setup, including supplier self-assessment forms and on-site audits, usually costs more in time than money, so plan for both in your transition timeline.

  2. Tooling rarely transfers equitably between vendors, even when you own it, so raise cost-sharing during quoting, before you’ve committed.

  3. Trial runs and material testing move faster when you request the exact named material specification up front.

  4. Being selective about which suppliers you include in an RFQ (request for quote) can work in your favor. When a supplier knows it is part of a serious, limited group being considered, it may have more incentive to offer its most competitive pricing than when the same RFQ is sent to a large number of vendors.

  5. Requirements beyond the label itself, like carton weight limits and routing guides, are easy to miss and costly to get wrong with a new vendor.

Here’s what each of those looks like once you’re actually in the process, starting with what to confirm once you’ve decided to make the switch.

Once You’ve Decided to Switch Custom Label Manufacturers

Many buyers reach this point having already confirmed a real supplier reliability problem, whether that’s repeated delays, unresolved quality issues, or quotes that take too long to turn around. That’s not unusual right now: label industry consolidation closed roughly 50 deals in 2025 alone, a 16% jump over the year before, and vendors caught up in that churn don’t always hold their service levels. If you’ve already made that case to leadership, the next question is what the transition itself actually involves: the process, the costs, and the details that are easy to overlook. Not knowing can be its own source of stress, and that’s exactly what this piece is here to help with.

Before you move forward, it’s worth confirming where the pressure is actually coming from. If rising costs or longer lead times are pushing you toward a switch, find out whether the problem is specific to your current vendor or part of a broader trend. Tariffs and raw material costs shift regardless of who prints your labels, so that context matters before you conclude a new vendor is the fix.

Vendor Risk Assessment: Qualification and Setup

Vendor risk assessmentOnce you’ve ruled out shared industry pressures and decided a switch makes sense, the qualification process is usually the first thing you’ll run into.

Most transitions start with supplier self-assessment forms covering general business information, lead times, capacity, capabilities, facility and equipment details, and certifications. It can feel like a lot of paperwork for something as small as a label, but it’s what keeps both sides from getting surprised later.

On-site audits often follow, covering quality, environmental, and regulatory assessments. This is usually how a vendor ends up on your company’s approved vendor list. It doesn’t happen automatically.

The cost here is mostly time, but it’s real, so build it into your transition timeline from the start.

Plates and Tooling

Spot color platesQualification tells you whether a vendor can take on the work. The next question is what it will take to move your artwork, plates, and tooling over to them.

Artwork files matter as much as the physical tooling. Confirm you own your current files and can access them easily, then ask a prospective vendor about their file-acceptance requirements. Any roadblocks to transfer are worth surfacing at quoting, before you’ve committed.

Even when you own your plates and tooling, it rarely transfers equitably between vendors. Equipment, process, and layout differences usually get in the way.

Color setup can add another layer: spot-color plates and Pantone matches from your old vendor may not carry over cleanly to a new vendor, so confirm how they handle color matching before you commit.

New tooling cost can be significant for a large SKU portfolio, and it’s normal for that number to feel like sticker shock at first. Some vendors will consider offsetting part of that cost depending on volume and circumstances, though that decision is made case by case. Ask directly what a vendor is willing to offset. You won’t know until you ask.

Trial Runs, Material Testing, and Vendor Selection

Trial runs at label printerTooling costs are only part of the transition. What happens in testing determines whether the label actually performs once it’s on your product.

Material testing should happen under real application and end-use conditions, since lab conditions alone won’t catch everything. It takes a bit more patience upfront, but that’s exactly the step that gets skipped right before a label fails somewhere you weren’t watching for it.

Discuss how to offset trial run costs with a potential new vendor. If you’re willing to pay for those costs upfront, ask whether the vendor will credit them back to you if they’re awarded the business.

Requesting the exact named material specification, meaning the specific construction of face stock, adhesive, and liner, can help you avoid a full material re-test cycle.

More vendors in an RFQ don’t necessarily mean better pricing. Suppliers may be more willing to sharpen their price when they know they’re part of a carefully selected group with a realistic chance of winning the business. Buried in a stack of 40 quotes, that same supplier has little reason to offer their best price.

The Requirements Beyond the Label Itself

Even after the label itself checks out, a few requirements outside the label spec can still catch you off guard.

The label spec is only part of what a new vendor needs to know. Carton weight limits, routing guide requirements, and similar logistics details often only surface after something ships wrong.

These get missed because they don’t feel like part of the label. But a vendor who doesn’t ask about them upfront can create friction with receiving, warehouse, or accounting, even when the label itself is exactly right.

Building a transfer checklist that covers more than the label spec keeps this from becoming a cost of switching that you didn’t plan for.

Conclusion

None of this is an argument against switching vendors. Switching can be highly beneficial for your brand under the right circumstances. It’s the difference between an unpleasant surprise mid-transition and a decision backed by real numbers.

A vendor who raises these costs and questions upfront is showing you they’re planning for a long relationship built on custom label printing services.

FAQs

What does it actually cost to switch custom label manufacturers?
Two different kinds of cost are at play here: time and money. Qualification paperwork, audits, and trial runs mostly eat into your timeline. The direct costs usually come from new tooling and trial runs, and how much of that a new vendor will help offset is worth raising during quoting.

Do I have to pay for new tooling if I switch label vendors?
It’s likely. Plates and tooling rarely transfer successfully from one vendor to another because of differences in equipment and layouts. Recognizing that this can be a significant roadblock to transferring your business, a new vendor should be willing to work with you to offset some, if not all, of these costs.

How many label vendors should I request quotes from when switching?
There’s no fixed number, but three to five serious candidates is a reasonable range. Once you’re sending the same RFQ to a dozen or more vendors, most of them can tell, and pricing tends to reflect it.

Will I need to redo material testing with a new label vendor?
In most cases, yes, at least some retesting is standard practice. You can shorten it significantly by handing over the precise construction: the exact face stock, adhesive, and liner. Vendors left to guess at “vinyl” or “paper” often end up running a full test cycle that a few extra details upfront could have avoided.

What should I ask a new label vendor before switching?
Ask about their qualification process, how tooling and cost-sharing work, what their material testing requires, and whether they need details beyond the label itself, like your carton weight limits or routing guide requirements. If a vendor asks you these questions in return, that’s usually a good sign they’ve done this transition before.

Lori Campbell, President, The Label Printers

Lori Campbell is President of The Label Printers and a recognized leader in the printing industry, with more than 40 years of experience in sales leadership, operations, and strategic growth.

Since joining the company in 1982, she has advanced through roles across the organization, gaining a comprehensive understanding of customer needs, production, and business management. Appointed President in 2018, she helps oversee the company's strategic direction and long-term performance.

Lori has been a frequent speaker at industry events and served 14 years on the Board of Directors of TLMI, the leading trade association for the industry. She holds a Bachelor of Arts in Political Science from Eastern Illinois University.

Tags: Label Procurement