Benefits to creating a private label?
In today's competitive industry, are there any benefits to having your own brand?
Can someone actually be competitive and successful by creating their own line?
There are literally thousands of Products on the market that you can sell, lately in the world of E-commerce and sales in general, a more common and popular options is to do a "private label".
A private label means to purchase a product that a manufacturing facility produces for many other clients other than you. The plant will allow you to label the product however you want. Meaning; even though a plant may make this hair shampoo for Mrs. Smith on the right, they will gladly sell you the bottle on the left with whatever brand information you want. This opens up a whole new world for you and for any seller. Instead of just re- selling a bottle of XYZ popular store brand, you can create your own unique branding and work solely on the marketing, while leaving the actual product up to the manufacturing plant.
There are four huge benefits to doing a private label, they are:
1- You control the price, no one else has the right to sell your brand, as such you will never have any direct competition with you own brand. In example a store selling XYZ supplements on 123 state street will have to compete with some one selling the exact same XYZ supplement on line. You will 100% control who is selling your brand and product, and if you are smart, you will make sure it is only ever you who sells your product.
2- You can design your label and marketing specifically for your audience.
Want to sell a popular skin cream to surfers only? Perfect make a skin cream label that has an ocean wave and someone hanging ten on the label, no longer do you have to just use the same label in stores. Be unique be creative, let your label reflect what you want to really accomplish
3- Much lower minimums, in the supplement world where we at Nutra- Insight live and breath, to do a novel formula the minimum is usually upwards of 2-5 thousand units. However there are many companies out there that will offer as few as 200 units for private label. This allows you to put your money where it needs to go, into marketing
4- A sense of ownership, when you create your own brand, you are not just doing marketing, you are creating a brand following that is all your own. You will know it was not a big advertising ding that helped you grow, but your own marketing, creativity, and genius.
The benefits to doing a Private Label product are huge, Many are surprised to hear that private label products are easily able to compete in the market. The huge companies that are established have a massive amount of overhead that has to be paid for with every product they sell, if you have a private label, chances are that you will have very little overhead to worry about recouping on every sale.
There is no reason that you should not create your own label today! Be sure to partner with a good manufacturing facility to produce your labels and product, and you can have your own brand started in no time!
So should you start your own private label?
