Private Label, What Is It?
Have you ever walked by the shelves in a department store and wondered how some of these companies got their start and thought, what would it take to see my name on the shelves.
Well, what most of us don’t realize is most companies don’t create or manufacture their own products; they do what we call PRIVATE LABEL MANUFACTURING, which is, A product manufactured by a third party for sale under a specific retailers brand identity and or name thus, offering the shopper a more affordable product while at the same time giving You the retailer a higher profit margin or return on a more economical investment / start up to your business.
For many years private label had been considered or seen as a low cost imitation to the well known branded items but in recent years private label products have over come this identity crisis and found a higher ground allowing for a significant growth with consumers all over the world.
With Private Label Comes Benefits.
As you know, the big national brands are sold all over world, which leaves for no real sense of brand loyalty in terms of where consumers make their purchases. Because private labels are unique to ones place of business, makes the possibility for consumers to cultivate a sense of brand loyalty to you and your store while at the same time increasing profits. Though most Private Label used to be seen as imitations to the "name brands", private label products have become increasingly more accepted by the public as quality has increased and retailers have expanded their offerings of private label goods. Many consumers now truly consider private label as a more acceptable and economical alternative to the national brands. Retailers are now capitalizing on this shift in public perception by offering quality private label products, which can foster a feeling of brand loyalty, which gives retailers a significant advantage over competitors.
Lower Prices / Higher Margins
Private label goods being more economical to produce than branded goods have allowed retailers the ability to purchase private label goods for much less than they would have to pay for comparable branded products. The cost difference is usually large enough that retailers can offer customers lower prices while maintaining higher then normal profit margins themselves. Lower prices can be enticing to customers and increase a company's competitiveness. Small chains such as salons, spas, kiosk and even small cosmetic stores have a particular incentive to offer private label goods; they are often unable to match larger retailers' prices for branded goods, so utilizing private label can allow them to be more competitive with the larger branded items..
1. Control over your pivotal product, and that means over your business..
2. You save substantially in product cost. You can spend these savings on anything you please, including higher product quality.
3. You have no competition for the brand of product you carry. No one can trade on your name legally. This is a strong motivational plus for your salespeople.
5. With Your exclusive brand you can, if you wish, enter the entire Out-of-Home market supply for, selling to stores, salons and spas and every other nook and cranny of the market.
6. You can sell the uniqueness as well as the real quality of your product, enabling you to achieve a higher average selling price (though many operators make the mistake of selling their private label for a lower price than the national brands).
To sum it up, selling your own brand makes especially good sense. As far as the consumer is concerned the only place to get Your brand is from You, whether it be at the retail counter, by mail order, or through Your own online store, You control your business and growth for the future of Your company. With this demand ever growing Department stores and grocery chains are dedicating increasingly larger amounts of shelf space to house brands such as Yours in an effort to reduce costs. Just one example: The decline of cereal giants like Kellogg is a success story of customers utilizing Private Label brands
“An analysis of the past three U.S. recessions indicates that store brands ( AKA Private Label) make sales gains during times of economic weakness, but only hold onto these increases when high quality standards are maintained,” the PLMA executive said. In the 2001-2003 recession, private label’s unit market share climbed from 20.0% to 21.3%. In the 1990-1991 recession, unit share for retailer brands moved up from 17.6% to 20.0%. “In both of those economic downturns consumers tried store brands, liked them and stayed with them even after the economy improved, he explained. Info provided from www.plma.com
For more information on private label and the benefits to utilizing Pure Colors Inc as your choice to creating your brand please don’t hesitate to contact a sales representative who will further assist you.
Pure Colors Inc. provides Private Labeling for our complete product line. Please contact us via email or call us at 1-303-688-8310 for additional information regarding our Private Labeling Program.
WHOLESALE & DISTRIBUTORSHIPS
For more information regarding our Wholesale or Distributorship Programs please contact us via email or call us at 1-303-688-8310 for additional information.
Please contact us via email or call us at 1-303-688-8310 for additional information.