White Labelling: How To Keep Your Business Fit and Profitable

Easy Branding Opportunities

Maintaining healthy revenue, sales, and consumer interactions can be difficult. Largely due to the shifting nature of the consumer, various efforts have been proposed to capture new customers, and find ways to offer incentivized products.

One such solution to help bolster sales, and seize potentially new market opportunities, is to enter into the realm of white labeling. The benefits of entering into private labeling contracts center on cross-business cooperation and retail-specific innovation.

What is White Labeling?

The term White Labeling, also known as private labeling, originated in the record industry where samples of music were released without album artwork to gauge consumer interest.

White labels essentially comprise a massive variety of products with generic labeling as an off-brand of many popular companies. In the realm of ready-mix food products, offering a white label product such as a protein shake can increase the opportunity of entry into multiple supermarkets or other retail outlets.

How Does White Labeling Boost Your Brand?

1) Association with large food distribution channels

Offering white label branding allows you to sell to multiple regional, national, and sometimes international markets that would otherwise be inaccessible. This association with new distribution channels will undoubtedly bolster sales and increase your profit share.

2) Higher Margins Through Lower Costs

A large portion of product costs come in the form of marketing, advertising, and branding. Through white labelling products, the responsibility for marketing and branding is in the hand of the retailer. This will drastically reduce the cost of production, and therefore allow a greater profit density.

3) Leave Retail to the Retailers

Unless the majority of your sales come internally through online mechanisms or self-sustained retail outlets, external retailers are ultimately the most capable and profitable marketing engines. Leaving the responsibility of sales to the retailers will undoubtedly increase the quantity of sales.

Private (White) labels are playing an increasingly important role in the market. This is potentially the most apparent through innovation on the retail side of sales.

Through white labelling products, a brand can benefit from retail strategies such as product placement and in-store advertising.

Likewise, huge multi-store campaigns which are aimed at establishing white label products as go-to alternatives to more expensive branded ones will lead to more sales and more customers. This ties into the growing resurgence of brand recognition as an impetus for sales.

Take note, for younger consumers, brand recognition plays a huge role in product choice.

There are no hard and fast rules for how to make your brand more fit, profitable, or attractive to consumers. If it works, keep doing that.

In today’s market, branding and social media campaigns seem to be a huge impetus for sales. However, the benefits of white labeling include offering a competitive product at reduced pricing, as well as allowing retail stores to utilize their consumer base.

For independent businesses and small chains, this represents a huge increase in sales and introduction to new fruitful marketing arenas. Furthermore, white labelling offers the unique opportunity to license products to large organizations who may want exclusive rights to a white label brand so they may distribute across multiple outlets.

Dure Foods is more than happy to help you build your brand using the finest dry blend food products on the market. For more information on white labelling for your business, contact us here.