Why Private Label Products?
There are many reasons to private label your own products, as opposed to selling another brand by another company. In the last 20 years, private-label market share has averaged 14% of U.S. dollar supermarket sales. It’s time for you to get a part of that percentage. Check out a few of the reasons why you should start private labeling your own products today.
What is Private Labeling?
First, it’s important to understand what private labeling is. According to Wikipedia, private label products are those manufactured or provided by one company and offered under another company’s name and brand. This covers basically everything from the Wal-mart brand to the small restaurant selling salsa. There are a number of businesses selling private label products. Restaurants, spas, hair salons, and nutrition companies, to name a few, are putting their own brands on products such as vitamins, lotions, lip balm, bottled water, and more.
Your Brand Working for You
One of the main reasons to private label your products is to have “brand power” working. Once a consumer knows and trusts your brand, they are more likely to choose your product in the future over a competitor’s product.
When you private label your products, you have control. You can decide what goes in to your product and what goes on the label. You are in control of the claims that are made and the fragrances that go into the product. You can also decide when and how to expand your product line. With control also comes quality. When you are selling another brand, you don’t have as much control over the quality as you do with your own private label.
The “Bottom Line”
Perhaps the biggest reason for private labeling is you get more of the profit margins. When you buy another company’s product line, you pay more for the product. When you private label, you can save as much as 25-50%, which means more to the bottom line for you. In addition, high-quality, private labeled products usually sell at higher retail prices.
Where to Start with Private Labeling
If the above reasons convinced you to private label your own products, you may be wondering where to start. There are several approaches you can take to private labeling.
- Look at your most popular product. The product that your customer chooses the most is the one that will provide the most opportunities for you.
- Identify a gap in the market. Consider modifying an existing product to meet a demand in the market.
- Extend your product line. Private labeling can help expand your current product line quickly.
Let us help you get started with private labeling your own products today.