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itized? If so, there is a strong chance that a customer would accept
a substitute with your name on it, assuming you can articulate an
advantage to your product over the existing.
3. Identify a gap in the market. Is a particular product in your line
working okay, but not exactly what the end-user would really prefer? Consider modifying an existing product to meet that demand,
or even building something from scratch. In either case, you can
expect your private label manufacturer’s minimum production
runs to be higher than for simply private labeling an existing product, but the payoff of having a product that no one else has may
far exceed the initial investment.
4. Finally, consider using private label to extend your current
product line. For example, if you sell a brand of liquid lubricant
that a customer cannot live without, it might make sense for you
to introduce a private labeled companion aerosol. Or, you may be
having success selling a chemical for degreasing, but you’re missing out on revenue by not selling a wet wipe for cleaning hands.
What Should You Expect from a Private Label
1. A manufacturer should have a clear understanding of your
market and customer base. This understanding will allow them to
make recommendations of products that you should private label,
but also which products not to private label.
2. A manufacturer should be an actual manufacturer. This sounds
obvious, but not all manufacturers are making the product they’re
selling you. Working with an actual manufacturer provides better
control over quality, often allows for R&D capabilities, and allows
for better responsiveness when the inevitable problem occurs.
3. In general, minimum production runs have come down in recent
years. While some manufacturers choose to work only with very
high-volume customers, others will put your name on a high-quality product for a minimal number of cases or units. Upfront costs
tend to be minimal.
The barrier-to-entry is small, and the advantages are only growing
for distributors considering private labeling. The time is now for
distributors to explore the possibilities of developing a branded
Beau Walter is Sales & Marketing Manager at Athea Laboratories |
Packaging, a 50-yr old manufacturer and private labeler of specialty chemicals and wet wipes. Athea partners with distributors and
OEM manufacturers to develop profitable products and private label programs. Questions? Email Beau at firstname.lastname@example.org.
Are there certain product lines in your portfolio
that have become commoditized? If so, there is
a strong chance that a customer would accept a
substitute with your name on it, assuming you
can articulate an advantage to your product over