A private label service or product is one that is manufactured by or provided by one company but sold under another brand. Some examples of private label products that you may be familiar with are store brands that you can buy next to name brand items on your grocery store shelves. These private label products are available in a huge range of industries including cosmetics, food and pharmaceuticals. In the past, these items were seen as a lower cost alternative to a name brand but these days, they are really starting to compete.
Private Brands Have Many Advantages
There are many benefits that retailers find when they promote these private label products. For instance, they will be able to work with a manufacturer to custom make labels and packaging with a specific logo or type of information. You will also find that there is much more control when it comes to pricing strategies and when retailers are looking to make their own marketing plans, this offers a way to have more freedom. Since there are higher margins that are possible with these products, naturally profits can be higher and it can be very easy to build up customer loyalty.
You Get More Control with Private Labeling
You will also find that private labeling will give retailers a lot more control over many aspects of their business including in areas such as marketing, sales and even distribution. Because these products are typically only available from a certain retailer, it also keeps customer loyalty strong. They cannot go to another store or even on the internet to find the same product.
With private labeling, retailers can, in general get access to products that are already developed and on the market, or they can use products that can be changed. Either way, these products will be re-branded to show the retailers logo and details. This can be quite lucrative because they won’t have to put a lot of time into the development and testing of these products, they will only have to find a source and a manufacturer.
If this is something that may be of interest to you, there are many private label manufacturers out there, you simply will need to do some research and choose the manufacturer that will be able to meet your needs.
Learn more about private label products by contacting Ion Labs. They can be reached via their website, Ionlabs.com or by phone, 1-877-990-4466.
