Mansoor Rafiq Umar is a B.A. graduate of the Darul Na'im Institute for Arabic and Islamic Studies seminary of South Africa. He has studied under various scholars of theology and Islamic legal theory, such as Mln Taha Karaan, and Sheikh Mokhtar Magroui, and networked with organizations across the world.
How Much Does Halal Certification Cost?
Mansoor Umar • March 19, 2021
One of the most common questions we are asked by businesses interested in getting their facility and/or products halal certified is “
How much does Halal certification cost?”
It is imperative that we educate businesses, and their stakeholders on their financial responsibility before getting knee deep into the process. To put it bluntly, Halal certification is not simple. Choosing a certification agency is not akin to deciding whether to purchase taco’s or burgers for lunch. Selecting an agency is in essence a partnership of trust between two parties. These partnerships tend to last many years into the future. Therefore, It is extremely important that you are diligent, and thorough in your investigation.
In this article, we tackle this concern by covering the key contributing factors associated to the cost of halal certification. This will provides a better understanding to any interested parties.
No Two Halal Agencies Are The Same
It is important to note as a precursor to this topic that each halal certifying body (HCB) is unique in what it offers as a service to other companies. Different HCB's have different capacities, and capabilities. At the very least, halal certifying bodies provide the necessary oversight for the issuance of certificates. Some of the most common features of an HCB are the following:
- Document Management Systems. These help keep track of all client certificates, submitted documents, codes, and forms. (View client portal). This is a major value add for any company seeking certification. It provides companies peace of rids your workspace of binders upon binders of documentation.
- Electronic Document Submissions. Documents are submitted view the online portal to make your job easier. No more need to fax or snail-mail documents to an address or phone number. (View Document Submission Requirements)
- International recognition and credibility for further product reach and expansion of the consumer base. Also necessary for particular overseas markets.
- Network building between consumers and businesses via social media.
Inquiring companies must consider all of these factors when hunting for a halal certification agency or service. Business owners must take note of each agencies offerings in order to help make the right choice for themselves.
In addition to this, most halal certification agencies are very private about their fees, and keep this information as closely guarded as possible. Many see pricing as their competitive edge, and disclosure as a threat to their very existence. We do not agree, and are committed to providing you with as much information as possible.
"Most halal certification agencies are very private about their fees, and keep this information as closely guarded as possible"
No Two Clients Are The Same
It is also very important to note that each company seeking halal certification
is very different. Businesses have different levels of complexity and needs that require tailored solutions. The most notable factors that play major roles in how a fee is assessed are the following:
- Audit, Review, and Inspection
- Number of Products/Ingredients
- Number of facilities, and/or facility Size
- Complexity of providing service
- Risk Factor
- Product destination (International, or domestic)
These 6 factors help the service provider determine the amount of work that is necessary to fulfil the certification requirements. Businesses must be transparent and should expect to disclose all relevant information in order to accurately provide an official proposal. Halal agencies are sworn to maintain the privacy of their clients, and handle all shared information as proprietary. It is not uncommon for a legitimate agency to request a non-disclosure agreement signature as a prerequisite. This is for the protection of both parties.
Pricing Models In Detail
When considering a service provider, one must do their homework in understanding the reason for the cost of service. Proposals fall into 1 of 4 main pricing model schemes. They are as follows:
- The Static Model
- The Percentage Model
- The Poundage Model
- The Mixed Model
The Static Mode
Certification agency charges a fixed fee for services rendered. Fees are generally annual, but monthly options may also be available depending upon the agency. These fees can range from as low as $400 to over $60,000 per year or more. Taking all of the factors into account will determine this cost. Some companies charge a separate travel and hospitality fee, expected to be covered by the client, while others include this fee into the overall cost of service. This model is fairly popular with restaurants, grocers, and low risk manufacturers of non-meat products. In your inquiry phase, be sure to ask these questions. (Calculate Certification fee)
The Percentage Model
Certification agency charges a fixed percentage fee on product sales. Depending upon the agency, the fee may be fixed to revenue, profit, or other determined metrics. In this model, halal certified entities are expected to pay upon a set schedule, whether that be weekly, monthly, quarterly, or annually. This option may be more appealing to customers who would like to take advantage of networking, RFP’s, and international products. The percentage model is usually more common with medium to large sized manufacturers of variant risk levels, and range from 0.01% to 1% of sales.
The Poundage Model
Certification agency charges a fee per number of pounds of products sold. This fee is typically tied to high-risk facilities, such as slaughter houses, meat packers, and other further processors of meats. These facilities require much greater oversight than other medium and low-risk companies. Halal established meat producers are typically charged a nominal fee of under 0.5₵ per pound on a monthly basis.
The Mixed Model
Certification agency charges a mixed set of fees according to the type of client being serviced. Mixed models may be implemented with very dynamic and complicated client setups. This pricing model is usually applied to higher end clients who may have multiple locations, product offerings, and destinations. Clients in this category usually enjoy various other benefits, including B2B networking, and less stringent per item fees.
Our Pricing Model
Our various clients fall into all 4 of the above categories, and we understand how to tailor make a solution for you at the perfect price point. We understand that each and every business is unique and special. We recognize the difficulties and challenges faced by producers of consumer goods, whether they be a 1000 sq ft restaurant, or a 100k sq ft manufacturer of cosmetics. This is why we handle each of our clients as if their business were our own.
As a halal certification
agency, Halal Watch World stands in a delicate, yet unique space between the consumer and the producer. We are honored with a trust few industries can claim. We are the medium of communication for both parties working to expand business networking and outreach, while concurrently being the voice of concern and oversight. In a nutshell, after 30 years of doing this, we get it.
For more information, or to get a free quote for service, click here, or, give us a call at 1(877) HALAL-WW
(877-425-2599). Alternatively, you may send us an email at support@halalwatchworld.org.
Mansoor Umar • March 19, 2021
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