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Private Labeling

Private labeling

Whole Foods’ “365 Everyday Value” line, Walmart’s “Sam’s Choice”, and Target’s “Archer Farms”- what do these different brands have in common? They are the result of private labeling.

What was once considered private-label-5a low-quality alternative to bigger brands, is now being purchased by many different kinds of consumers, in a variety of markets. So, what is it exactly that changed?

Over the years, the quality went up, the branding, packaging, and marketing has gotten a lot better, and people were now given an actual choice. Choose to stick with your big brand, which costs more because of that logo and slogan on the box – or switch to a brand which may not be as known, but which will deliver high quality for a lesser price. Once people were able to get past that psychological block,  that attachment which keeps them loyal to their regular brand, consumers found that there is a whole world of products out there, private labels, which are not as low quality as they once were.

There is a lot to say for loyalty, and there are products out there which deserve a proper following. But does that mean that companies can continue to raise their prices, while their products remain essentially the same? If you are going to raise the price, and claim to be better, you need to hope you are, in fact, better. It isn’t 1986 anymore. Off brands, store brands, are no longer the lower-tier items they were, and in the 1990’s John Q. Consumer began to pay close attention to those companies were who taking him for a ride.

This resulted in a great boon to the private label and white label industry, and now with e-commerce, it is a business which anyone can be a part of. All you need is a proper manufacturer, and a vision for the future.

With private labeling, the products are already made. Some manufacturers may even allow you to change a formula or “tamper” with a product’s ingredients to make it more accessible to specific niches, and this is where private labeling has got big national labels by the cojones.private-label1

With private labeling, you as a businessman get to “skip” over the many months of research, development, and manufacturing, and go directly to selling your brand and the philosophy which is behind it.

When you go private label, it is all about you. Choose a manufacturer which is aligned with your views. For instance, if you are vegan, choose a manufacturer which is cruelty free. If you are a family-oriented person, perhaps go with a smaller, family-run manufacturing company. As long as you and your manufacturer enjoy working together, it can be anyone.

Unlike other kinds of companies, which demand you order a specific amount or conform to a specific marketing strategy or angle, it is all on you. Private labeling does have some risks, but it brings with lots of freedom. For many entrepreneurs, this is the game-changer, and it makes the world of business a lot more manageable.

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