A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. As the retailer, you specify everything about the product. This is in contrast to buying products from other companies with their brand names on them.
Retailers interested in filling their shelves with products featuring their brand name have good reason. Some of the biggest advantages of private label products include:
- Control over production – Third-party manufacturers work at the retailer’s direction, offering complete control over product ingredients and quality.
- Control over pricing: Thanks to control over the product, retailers can also determine product cost and profitable pricing.
- Adaptability: Smaller retailers have the ability to move quickly to get a private label product in production.
- Control over branding: Private label products bear the brand name and packaging design created by the retailer.
- Control over profitability: Thanks to control over production costs and pricing, retailers control the level of profitability its products provide.
The disadvantages of adding a private label line are low, have the financial resources to invest in developing such a product. The main disadvantages include:c
- Manufacturer dependency: the production of your product line is in the hands of a third-party manufacturer, it’s important to partner with well-established companies. Otherwise, you could miss out on opportunities if your manufacturer runs into problems.
- Difficulty building loyalty: Established household brands have the upper hand and can often be found in a variety of retail outlets. Your product will only be sold in your stores, limiting customer access to it. Of course, limited availability could also be an advantage, giving customers a reason to come back and buy from you.
Private Label Categories
Almost every consumer product category has both branded and private label offerings, including:
- DAIRY ITEMS
- PERSONAL CARE
- PAPER PRODUCTS
- CONDIMENTS AND SALAD DRESSINGS
- FROZEN FOODS
- HOUSEHOLD CLEANERS
Private Label Rights
Rights give a seller the ability to brand their own product without having to figure out where to get it in the competition. This means the owner of the brand creates the rules.
This is often mistaken because people don’t know where to go, who to talk to, or how to properly develop a quality product. Because we go through the difficult processes, and what needs to happen is your approval for the product you select.
This is what really sets our center apart from others. Most other fulfillment and prep services require you to already have a product and a source for that product.