Private labeling is all the rage at the moment, and for a variety of reasons. First, it allows you to retain a larger number of customers through your brand. And second, a huge portion of the manufacturing process is handled by a third party, which allows you to reduce the stress associated with things like production and sourcing. However, not all private labels are an instant success. In this article, we’re going to give you a few tips that will allow you to establish a successful private label product.
Never Skimp on Quality
One of the biggest mistakes people make with their private label products is compromising on quality for price. Many people focus mainly on the bargain aspect of a product and want to offer the best deal possible to their clients. However, your product should be able to compete with any top level brand out there, or else your product will get phased out. Not only that, but a poor private label product will reflect negatively on your brand.
Adjust the Branding Properly
The way you label your products should be adjusted to the type of product you’re selling. For instance, a shrink sleeve might be perfect for cleaning products or supplements, but not for certain food products. Also, if you’re selling supplements, for example, you should make sure that your product’s benefits are front and center and that your logo plays a second role, while still being prominent. And if you’re selling a multitude of products, make sure that the branding is somewhat consistent while still making the proper adjustments depending on the product.
Don’t Go Crazy with Discounts
You might be tempted to undercut your competition by offering deep discounts on your products, but that is not always the best strategy. Instead, you should offer a discount, but make sure that it is not more than 30% than other competitive brands. The reason for this is simple. People often conflate worth and value, and if a national brands sells their product for $12 and you sell yours for $6, this might raise a few eyebrows. Some clients may actually think that your product is of lower quality and stick with the national brand instead.
Make Sure the Packaging is Professional
Packaging is important if you want your brand to stand apart. Your packaging should look just as good as your competition, if not better. Make sure that you take the time to design a logo that fits with your brand and will command the public’s attention before you even think about putting it on the shelves. Also, make sure you trademark your brand to limit the chances of competitors copying your logo and creating confusion.
Private label products can be a great way to promote your brand when done right. Make sure that you have a professional logo and packaging before you put your items on the shelves. Also make sure that you don’t go crazy on discounts so that your clients do see your product as inferior. Don’t compromise on quality for price and make sure that you adjust your packaging depending on the type of product you’re selling.