Using a private labeling service is one of the best and most efficient ways of building and maintaining a brand. Using the tools of private labeling, it is possible to make a name in almost any business. The idea behind private labeling is simple: instead of selling other companies’ brands and products, you become the brand and the product.

The advantages to private labeling are many and varied, and they have to do with different aspects of the business. From research and development, through production and logistics, to packaging and pricing.

The private label business is a lucrative one, and it is able to provide clients with a measure of control which many business owners are looking to attain. The client doesn’t start from scratch, which is a massive upgrade already. The product is there, in its generic form, and there are cases where clients get to decide whether to adjust it or modify it to fit their needs. Clients get control over design, production, and even distribution. Instead of bowing to the whims of a company’s supplier or distributor, it is now all on the client’s shoulders, for better or worse. You can fulfill your dreams and have the ingredients and health conscious products you want.  The client deals directly with his or her sources, who will be manufacturing and supplying the products of the label.

Value

Another advantage is value, both for the business and the customer. When the costs of housing and selling other companies’ brands are reduced, the client now has more money to reinvest in their own labels. Private labels are usually cheaper to produce, and that makes a big difference. Investing in a quality private label is a surefire way to reduce overhead and boost profit. As for the consumers – more than anything, they want to know that they are getting the highest possible value for their hard-earned money. If they see there is greater value in your brand, they will change loyalties.

Related: Label and Brand Design

Control

Also, because it is a private label – which, again, provides the client with a lot more control – there is the possibility of making changes “on the fly”, and quickly adapting to consumers’ needs. This can’t be done in all cases, but the idea is this: the client sees a growing demand, speaks with his manufacturer, and alters his product to fit that demand. It is

more efficient, more customizable, and more manageable then dealing with an external company’s branches of production and distribution. Think you can get L’Oreal to change the formula to one of their cosmetics products, just for you? Good luck!

The possibility of exclusivity on a product is another big advantage. If you find a high-quality manufacturer of a certain product before someone else does, you have the option of seeking exclusive rights to sell that particular item, brand, or formula, thereby giving you a serious edge over the competition. That product, which has your label and your name on it, will not be available in any other place of business, on or offline.

Your Image

Private labeling and branding lets you decide on an image, a look. You can implement your personal philosophy into your brand, and use it to create a marketing identity. That way, over time, you will encourage consumers to remain loyal to you and your products, because there is a statement, a message, a philosophy – your philosophy – behind them.

Another advantage having to do with competition – virtually eliminating industrial espionage. Having a private label means that it is a lot more difficult for competitors to match your prices and go head-to-head with you. A private label can be as dynamic as the client chooses. Pricing is totally subjective to the client’s whim, which is not always true when dealing with external companies and well-known brand names. Sometimes, you need to adhere to other peoples’ rules and regulations. But, when you are your own label-boss, it is a lot more about your rules and your regulations.

Downside

And speaking of rules and regulation: there is one serious disadvantage to private labeling that I need to bring up – liability. If you are planning on going private label, make sure to A – go with a high quality company, and B – get the issue of liability all cleared up. Be certain to get the right kind of insurance for your label, because should someone incur any damage due to your products, it will be on you to deal with the consequences.

Some business owners have attempted to sue the private label manufacturer. However, if the manufacturer is overseas, or if there is a clause in your agreement which exempts them from any liability – well, let’s just say it is a situation which you do not want to face. At any rate, you probably shouldn’t burn any bridges. You never know who you will be doing business with, right?

Wrap Up

When it comes to private labeling, the advantages greatly outweigh the disadvantages. Private label products are normally cheaper to make, easier to modify and control, and, if you play your cards right, you could get the upper hand, and come up with some kind of innovation before the brand name companies do. Having the generic product readily available can help save money that would otherwise be spent on research, development, testing, production and manufacturing, and many other costly procedures.

You, the business owner or entrepreneur, know your prospective customers and consumers better than anyone. You know what they need, you know what they are looking for, and you know how your label is going to fulfill that need, and give them what they want. The difference is, that instead of starting from scratch, and spending a lot of time, money, and energy on getting things off the ground, you take a business shortcut through a private label company. If you have the right angle, and are able to employ sophisticated marketing techniques, it won’t even matter that others are selling the very same product under a different name. Why? Because this is your product. Your name. Your brand.

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