What is Private Labeling?
Posted by Diana K. on Oct 12th 2022
WHAT IS WHITE (PRIVATE) LABELING?
Private labeling is when a manufacturing company manufactures its products and sells them to retailers without using their brand names on the product labels. Sometimes, the manufacturer will put the retailer's brand labels on the products as part of the manufacturing process. In other cases, the retailer is responsible for labeling its products. This allows retailers to put their own brand name labels on them.
IS QUALITY THE SAME IN THE WHITE LABELED PRODUCTS?
Yes, it is. The products are the same quality as the manufacturer's brand name. The only difference is the name on the label. It would not make sense for the manufacturer to downgrade product quality - they want to keep their customers happy!
CAN I SELL OTHER MANUFACTURERS' PRODUCTS TOO?
In most cases, absolutely! The only time you wouldn't be able to sell other manufacturers' products is if the wholesaler holds you to an exclusivity clause for some reason. However, these are pretty rare in private-label relationships.
HOW WHITE LABELING PRODUCTS HELPS RETAIL BUSINESSES
There are some critical benefits to the retailer taking part in a private label program:
1) The retailer looks more authentic, bigger, and more natural to their customers and clients because they have their 'own' products. Plus, you purchase those products at highly-discounted prices, and you sell them for retail prices (generally for MSRP).
2) When the customer/client brings the products home, they are constantly reminded of where they got those products from. It is a beautiful form of branding that keeps YOUR brand top of mind for your clients.
3) Private label products have already been tested in the marketplace and already have a proven popular market.
4) Because of the special wholesaler-retailer relationship, the retailer doesn't have to go through the huge expense of developing, testing, and supporting their products. You can profit from selling your brand products without the added costs. This is a huge win for you as a retailer!
WHITE LABEL PRODUCT EXPLANATION
To explain this a bit further, let's consider a salon, Brit's Boutique. In one scenario, on display is a shelf of manufacturer products from a brand such as Honeycomb.
Now we go into another small nail salon - let's call it Brit's Boutique. On display in this salon is a shelf of professionally labeled products with Brit's Boutique logo.
Which of these boutiques is more validated in your mind? It's the second option, right? Not only is Brit's more validated in your mind, but every time their clients use their products at home, they see Brit's Boutique on the product label.
The client will be MUCH more likely to remember that salon, know where to go next time, and refer their friends!
CONCLUSION
As you can see, there are many advantages for retailers using products in a white-label program.
YOU can take advantage of these benefits with Honeycomb Wax Company's own White Label Program, too. All of our products can be white labeled and sold for a profit to your clients.
To get started, visit our private label page today and discover how to sign up for your spa. You can start making more money selling YOUR OWN brand of spa home care products right away!