How to Choose a Private Label Manufacturer

Choosing a Private Label Manufacturer

In recent years, many people started generating their primary income from private labeling. Even though it has some barriers to entry, it can be a sustainable source of income once you get your private label business off the ground. One of the biggest challenges is choosing a trustworthy private label manufacturer that supplies you with high-quality products.

What is a Private Label?

A private label is a brand that is owned by the retailer, who has its own contract manufacturer. Many retailers prefer this business model as it gives them the opportunity to differentiate their product in the eyes of the buyer and it is also one of the best ways to build loyalty amongst their customers.

How Does Private Labelling Work?

Private label manufacturers specialize in manufacturing products according to the retailers’ specifications, which can also include adding the branding to the product packaging. In many cases, a lot of the products that different retailers sell is exactly the same, with the only difference being the branding.

A company that primarily sells coffee may source coffee accessories like plungers, drippers, and filters through a private label manufacturer to expand its range of products. These add-on product ranges are exactly the same as the ones that other online retailers may sell, but the coffee company is different in the eyes of its buyer since its primary product, the coffee, is unique, and the add-on products like the plungers are branded.

How to Choose a Private Label Manufacturer

It is important to choose a private label manufacturer that you can build a long-term relationship with and that you can trust. Many people that start private label business make use of platforms like Alibaba to find suppliers. The problem with these suppliers is that they are not usually located in the North America, which can cause them to run into issues with shipping and vetting the manufacturers and the quality of their products.

Choosing a Private Label Manufacturer

Before choosing a manufacturer, you have to know exactly what product you want. Do some research by visiting online forums and question-based websites to find private label manufacturers that specialize in your product category.

You can also make use of manufacturers from overseas, but make sure that you order samples and that you only make use of mainstream third-party payment services, to ensure that your money is secure. Buyer-biased payment online transfer services are the best to ensure that you get your money back if a supplier does not perform in terms of your agreement.

After you have made a list of potential private label manufacturers, visit consumer sites to see if you can find reviews and contact them for quotes to see where you can get the lowest input costs.

What is a Licensed Brand?

A licensed or private brand is a product that is exclusively produced for sale by a retailer. The retailer markets and sells the product under its own trademark or brand name. A brand license is an intangible asset that belongs to the retailer as it allows them to sell products at a higher price.

Contact Dure Foods today if you’re interested in developing your own private label brand.