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Why Private Label?

There are many reasons your company may decide that it is best to private
label your own products, as opposed to selling products branded by another
company.
One reason is that you now have the "power of the brand" working for you.
When somebody is buying a product that you have branded, they are much less
likely to switch to purchasing from a competitor.
The consumer now likes your product, they like your brand. Unless the
competition is selling your brand (which can often happen as you expand your
sales and begin wholesaling to other vendors), the consumer will continue to
purchase from you. And, when consumers do start purchasing YOUR brand from
another retailer, that is great news, because you now have expanded distribution
channels.
Another popular reason for private labeling is control. You now decide what
goes in to your product. You decide what goes on the label. You decide what
claims should be made. You can even decide to expand your very own product line,
if you choose to.
Right in line with control comes quality. When selling another brand, you
don't have as much control over quality as when you do your own.
Now, getting right to the "bottom line", a fourth major reason to private
label your own products is profit margins.
When buying another companies product line, you are paying more for product.
Depending on quantities, relationships with your suppliers, and other factors,
you may save as much as 25 to 50% or more when private labeling.
Add to that the fact that many high-quality privately labeled products can
actually fetch higher retail prices than the "brand names", and you have makings
for much higher margins.
If you'd like to discuss any of these issues with one of our representatives,
call us at 770-443-0722
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