Private Label Supplements have undergone continual growth despite poor economic conditions. To be more specific, store brands have shown a stable increase in sales for years. All of that said, I am going to explore some possible reasons for this, and ways in which you can apply private label products to your business and the advantages. Lets define what this is:
Private Labeling is the mass manufacture of tangible goods for many companies labeled under each smaller company’s own brand name.
We see this commonly in national retail chains such as Walgreens, Rite-Aid, CVS, Target, WalMart, and many others. Everyone has purchased Walgreens brand Tylenol at one point or another, Right? Why? It’s because we believe we will be saving money by purchasing the store brands. Right?. Also is it just me or do you get the feeling that the product is cheaper in price rather than quality? I used to have mixed decisions on this one, until I began working for a company who provides store brands and unique brands so I am biased. Really, most of these products are manufactured on the same production lines that the major brands are. Is that the irony or the value? Next what are the benefits of your own brand? First the real major reason for the industries success is most likely due to the youth of this business model. Only recently has private labeling been adapted to the majority of small mom & pop style businesses. Therefore, the ability for more stores to offer their own brand has increased its growth rate. Resulting in increased national sales numbers for major store brand suppliers. Really all advantages to this business model can be attributed to the afore mentioned fact, “Store branding has only recently been adapted to the majority of small… businesses”.
Through this small store owners to provide their own brand which is the driving force behind private label success. As the market grows so do marketing budgets of the private label suppliers used to recruit more store owners into the store brand business. So why offering private label supplements or private label vitamins? It is debatable, but the usual response would be the increased profits. However, brand awareness plays a MAJOR role in the decision making process of those considering their own brand. Overall, developing your own brand assists in building brand loyalty. Once you have achieved the perceived value of product superiority to the other products you will have more LOYAL customers, but instinct.
Regardless of your intentions in selling your own line of private label products the benefits will be in your favor. Increasing profits, increasing brand awareness, and increasing customer loyalty are what you need.
So how do you buy these products? First I suggest identifying your best selling products. Then try with one or two of your those, do some research, and find a supplier. Be sure to select a supplier with sufficient licensing and a comparable product (don’t forget to request samples). The typical start up cost is $500 – $2000 for a product or two with labels.