Private labeling offers your company an opportunity to outperform your competitors, increase sales revenue, and offer your customers lower prices on the products they purchase every day. “Private labeling”, however, is a somewhat misleading term.
Private labels are also known as “generic” labels that act as lower-cost alternatives to popular brand names. Retailers that develop private labels generally offer their own products alongside their brand-name counterparts at lower prices. For example, Great Value is the Walmart private label, and Kirkland Signature is the Costco private label.
Private Labeling Increases Profits
One of the biggest benefits to investing in private labels is increased profit margins. Building a personality around your brand can increase your dedicated customer base. Once you show your customers that your private label products offer lower-cost alternatives to brand-name products, this will encourage loyalty to your private brand and drive your sales numbers.
Modern consumers have a dizzying level of choice when it comes to purchasing some of the most commonly sought products at major retailers; you can leverage the power of your private label to attract more people to your private label instead of overpriced brand name products.
Private Labels Can Cut Your Overhead
When you purchase brand name goods, you need to sell them at an acceptable markup that balances profit margins with marketability. Some of the products that you should focus your attention on include those that generally sell themselves without much advertisement, such as basic household items, over-the-counter medicines, food products, and cleaning supplies.
Some of the brand-name versions of such products may sell at five or six times the manufacturing cost. Your private label alternatives have a lot of wiggle room when it comes to setting attractive prices, and you will likely wind up with larger orders for your private label items than brand-name products.
Your Private Label Can Build Authority Behind Your Brand
Having your own private label instantly builds credibility with your customers. They will notice that you have your own line of attractively priced products with a unique private label and brand message. This inherently builds your authority as a manufacturer and as a retailer. Invest in a private labeling partner that can help you devise a strong brand image through your private label.
A labeling partner with experience designing and producing custom product labels and other brand imagery for a variety of clients is ideal – just be sure the labeling vendor has the experience necessary to make your private label vision a reality at an acceptable cost.
If you’re interested in the potential a private label could offer your company, we can help. With more than 40 years of experience in the custom label printing industry, our team has the skills and experience to help you craft a brand image and a private label to drive sales and lower your overhead. A private label can provide you with long-term flexibility and dependable sales figures, outshining more expensive brand name products.
Contact Century Label today to find out more about our private labeling services and how we can help you achieve your vision for a successful private label.
