The Benefits of Private Labelling

March 22, 2020 1 min read

Have you ever noticed that every store you walk into seems to carry the exact same products? It’s no coincidence - large corporations spend millions of dollars trying to maintain their shelf space leaving no room for anyone else. Private labeling is an excellent way for you to differentiate yourself from the competition, build your own brand, and ultimately make more money.

Differentiate Yourself

Consumers today are always looking to be excited by something new when they walk down the shopping aisle. Offering them something unique and different is a great way stand out from the masses. Private labeling can give your store or business a unique competitive advantage by carrying something proprietary.

Build Your Own Brand

Private labeling allows you to give your product it’s own look and feel. Change the label. Change the bottle. Change the sprayer. It’s up to you! Plus, you can quickly adapt to consumers ever-changing needs.

Make More Money

Traditionally if you wanted to sell a product you had to go through a middle-man who would take a percentage of margin from your company. The distribution model looked something like this.

Manufacturer -> Distributor/Broker -> Reseller -> Consumer

With private-labeling you are going direct to the factory which means more profit margin for your company. Here’s how this distribution model works:

Manufacturer -> Reseller -> Consumer

In addition, you can name your own price for your brand. Unlike traditional manufacturers which enforce MAP (minimum advertised prices), you can determine how much your product should sell for.