You see it with vitamin and supplement companies and even things like batteries. Costco, for example, sells white-label batteries, which are referred to as Kirkland`s signature product. Duracell manufactures the batteries. 1. Why Private Labeling is still the key to long-term success Private label products can be a good way to offer your customers unique items and focus your business primarily on marketing and display rather than manufacturing. Below is an overview of some important information about white label products. Software is a common example of a white-label product. A software provider sells its product to a company or agency, which fames it and resells it with its logo. If you are thinking of private labeling products, talk to a legal expert before you do anything else. They can be held accountable if something goes wrong with these products. If you are a private label seller, you will also be held responsible for your products. For the product supplier, the main advantage is access to a large distribution network. The main advantage of white labeling is that they can get products without having to redo them from scratch.
The Dutch life sciences firm AXON specializes in the development and negotiation of agreements between manufacturers and private label partners. Lawyer Karin Verzijden said: „It`s one thing to have an acceptable agreement with your partner, but another to make sure it`s backed by the good underlying agreements. Therefore, the services agreed between the contract manufacturer and the private label customer, as well as other important issues, such as liability for non-compliance, should be guaranteed by appropriate agreements with potential suppliers and subcontractors. The aim is to achieve a fair share of the risks between all parties involved in the value chain. There is anonymity in this type of product. The consumer who ultimately buys the product does not know that a white label supplier has produced it. If you want to sell products with private label or white label products, the riskiest sectors are food supplements and children`s products. If you sell supplements, you have to be very careful with the products you buy and then resell. You should just try to buy products from the U.S., and you need to make sure they are properly labeled. It is likely that you choose a partner based on your expertise in a particular area. The Dutch private label supplier VSI, for example, specializes in high-end bars for sports nutrition, weight control and healthy catering. „It`s not easy to create a bar,“ said the company`s new ceo, Daniel Davids. „We focus on doing something very well.“ If you are a reseller, online or in any other way, one way to get products is to go to the white-label road.
4. Manufacturing. You are responsible for supplying the product under a private label agreement, either by manufacturing the product yourself or by having it manufactured by a contract manufacturer. Whatever the small margin of your margin, start with a contract manufacturer to make sure the deal starts well. You can switch to your own production plant as soon as the sale is safe. 5.5 On a private booked visit, please note that if the client is late, the visit may end at the announced end.