Private label products are those manufactured or provided by one company for offer under another company's brand. It is one of the hottest trends out there today! And, why shouldn't it be?
More and more businesses are getting away from the 'national' brands and offering their customers private labeling. Though the public generally used to see private labels as low-cost imitations of branded products, private labels have overcome this reputation and retailers are all offering private label products these days.
Still not convinced that private labeling is for you? Here are 5 more reasons you should give it a try!
- BRAND IMAGE: Private branding allows you to create your own unique image, which creates a marketing identity and promotes stronger customer recognition and loyalty.
- PRICING: Private labeling allows more control over things like pricing, marketing, sales and distribution. YOU get to make the rules.
- MARGIN: With higher margins possible, there is a greater opportunity for profit. For retailers, margins on private label goods are an average of 10% higher than those on similar branded products with higher margins possible; there is a greater opportunity for higher profit.
- EXCLUSIVITY: Private label products are only available from you the retailer - customers will not go into a popular megastore and find the private brand product at a lower price. Customers will not find the private brand product somewhere else on the internet either.
- You OWN it!