8 Benefits of starting your own private or white label business
There are many benefits of opting for private or white label products of which 8 of the main benefits are discussed in this article. But just before you read further, it’s worth noting that the term private label and white label are being used synonymously in this article, emphasising on re-branding of both tangible and intangible products. Having made that clear, now fasten your seat belt and let’s look at the 8 benefits one by one.
Private or white labels offer retailers control over the price your charge for the product. While it may cost more to get a private/white label provider to add your branding to a product, however, you will be able to set and sell the final products at your own price. Giving you total control over the profit margin that you make.
2. Takes the pressure off
If something goes wrong, especially with SaaS and application services or a client complains, most third-party tools will take responsibility and work on a fix or update for the service or refund the cost of the product. It’s up to you to choose a quality product from a third-party that offers dependable support, but once you do, you can sit back and enjoy offering your clients a great tool while someone take care of the technical aspects of your business.
Nurture and grow your own brand
Private or white label means that the label owner has control of the product or service while you as a retailer have your own brand that can be grown to a global status. You can develop and implement innovative ideas to market your brand, gain and increase your market share in your market. Having your own successful brand comes with enormous advantage such as customer loyalty, brand recognition, equity to mention but a few.
You concentrate on marketing and growth
With private or white label products or service, you can concentrate on marketing your brand and take it to new heights. With your own brand, you have many strategic options to explore as you grow and position your brand in the market. What to include in your product portfolio, how to promote, channel to explore, cost control, adding or deleting product items in your portfolio. Having a more purposeful marketing strategy can increase brand equity, customer loyalty, and sales.
Another major benefit of private or white label products is that they stand out from the generic resale product. You are essentially differentiating your brand apart from your competitors, giving buyers more reasons to choose your product, especially if your unique selling proposition is compelling. It also removes the temptation of competitive pricing as your product is unique to everything else out there.
Growing consumer demand for choices and value
As consumers are becoming more price sensitive couples with economic downturns, yet want choices and value for money, price becomes important as consumers turning to money-saving brands like increasing private label brands to manage budgets. While price is not the only factor consumers consider when choosing private label brands, still an important one. The need for affordable packaged goods and services is high, and private label products are gaining ground toward meeting that need. This doesn’t mean every private label brand is cheaper, but many of them are. Even when they are more expensive, the value proposition of the private label brand is usually better.
Goodwill and customer loyalty
The value of any business is not really in its tangible assets nor the people. The lion’s share of business value lies heavily on the goodwill and customer loyalty. So, building a loyal customer base is central to long-term business success. Private or white label gives you the opportunity to build your own brand, goodwill and customer loyalty as your business grows. Both the national and global brands enjoy these, but make no mistake, they worked for it. So, building bran goodwill does not come easy, but the rewards are sweet in the long run.
Saves time and costs
Some of the most obvious benefits of using a private or white label are the fact that it saves time, cost and reduce risks especially for business a starter. Imagine the time and cost it will take to recruit experts to develop VOIP App or setting up a manufacturing plant to start baked bean production? How about meeting the license and regulatory requirements? What about the possibility of product failure at the introduction stage to the market? With Private or white label, you can test the water by starting with little orders to test the market before committing huge investment, hence minimise risk, save time and huge initial cost usually associated with start-up.
So, thinking of providing your clients with great products and maintain a high return on investment all in your own brand while leveraging the expertise, experience and production capacity of the giants, then think of a private or white label.