Private label products in retail stores
Retail is a challenging game these days, thanks to an almost bottomless array of online products competing with brick-and-mortar retail for customers’ attention. Despite this, customers still respond to products they can physically hold in their hands and experience in-person. If you’re trying to get more customers into your store, one of the easiest ways to do it is by offering a line of private label products. These products increase your authority as well as your bottom line—you’ll always make more profit on your own product than you will reselling someone else’s. If you play your cards right, you can easily scale your business with this one simple pivot. Read on to learn more about how private label products can boost your retail business.
Private label brands rule on retail shelves
You’ve already got the outlet, the buyers, and the platform. You also have a major tactical advantage: no one knows your customers better than you do. Having observed their buying habits, you know what customers are looking for and buying. You also know what they aren’t finding but want. By filling in the gaps with private label products, you can meet your customers’ needs and grow your market almost instantly. Tailor your products to your existing customers, and target them to the customers you want to attract.
Leveraging your private label brands: a three-pronged strategy
Reach out to us today to see how we can elevate your business to new heights.
Many retailers find that the most effective approach to incorporating private label products into their inventory is a three-pronged approach. Not one, not two, but three. Ideally, your private label products will come in three tiers: a low-cost brand; a premium, luxury good, higher priced brand; and a middle-ground, with some special quality differentiating it from the others. Not only does this offer more selection to your customers, but it also means that your primary competitors are your own products.
Private labeling in retail
Why do customers buy private label brands?
You can assume that your customers shop with you because they already appreciate what you offer and trust you. Your private label brand is an extension of your business and represents a brand that your customers already know and trust. While selling your own private label products is an excellent way to increase your revenue, it also increases your leverage with your customers. By ensuring that you have an excellent product, you deliver value and reinforce the idea that your brand is reliable, high-quality, and worthy of your customers.
How do I source the right product for my business?
As mentioned before, you know your customer better than anyone. What’s more, as the owner of a retail outlet, you can target your customers by launching the right products at the right time. Being in charge of your private label products allows you to accelerate the speed to market for innovative products, giving you first-mover advantage and maximizing your sales.
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Frequently asked questions about private labeling
What is Private Labeling vs White labeling?
The two terms are often used interchangeably but they actually mean very different things. And if not used properly it could lead to future disruptions.
Private Labeling is an awesome busienss strategy used to scale a busienss to help attract more clients, build a global brand that makes an HUGE impact and add revenue streams 600x more than you are making right now.
Private label is quite simple. Find a product, put your brand on it and share it. It can be a product that already exists with no IP ties (most products) or it can be a product that is completely new and you invented it. Most clients go for already existing products as they are easy to find and the process is much faster. We have private labeled over 800 products (existing and new).
White Labeling is when you find an existing product and you take the label off it and use a generic or no label for the product. So example, if you are buying a pair of white running shoes and you put the name Nike on it it becomes a Private Label product. If you take the same white running show and you don’t put any name on it and it is just generic then it is called a white label product. You see more white label products in the food industry. You may notice this now more when shopping at your local grocery store.
Difference of Private Label and White label are really at the core. A manufacturer who manufacturers the product is providing a white label service or offer to the clients for the opportunity to private label the physical product with their name. This is why these terms are used interchangeably as they are very similar.
What if I don’t have a product idea?
Having a product idea is not the first place you start. If you have no idea what product would be great for your brand and business you are ABSOLUTELY ready to start! We personally work with you to help you find the right category, industry and products that would perfectly fit you and your business. Not all products are the same. What may be an awesome product for me and my business may not be for yours. In our product discovery session we walk you through finding the perfect product and help you in selecting products that would be best suited. Product selection is very important and is not recommended to do entirely on your own. Many times we meet with clients who already have a product idea and in many cases we don’t recommend them and have them re-evaluate selection.
So if you don’t have a product idea, you are ready to start. By not starting you doing a disservice for your clients by not supporting them further with products. And your leaving money on the table. Products help you scale your business and make more money.
How can I use Private Label Product to grow my business?
Take a look at the industry you are in. Or look at an industry you are interested in. For example: If you are in the fitness industry, or you are business coach or in the beauty industry, then you probably have noticed that the leaders in your industry are becoming bigger influencers everyday. How did they do it? They build a strong brand and their private label products have a HUGE part of creating that brand globally. When you provide a service to clients it is much harder and takes much longer to make an impact and reach the masses globally. Private Label Products can do just that. Reach millions of potential clients at one time and globally. Think Wolfgang Puck. He became famous not from his cooking itself but because he was able to reach more people with his brand through physical private label products. You may have his cookware in your possession. He states that his wealth and influence in his industry was from his creation of his own private label branded products.
How long does it take to get started?
The process is not hard at all but yes it can be long depending on your strategy. Many newbies use online sites like Alibaba to look for products and supplier/manufacturers. Using this process takes months if not longer to just find a “real, reliable and safe” company to work with. But it doesn’t have to take that long. We have been private labeling products for Walmart, Michaels, Martha Stewart to name a few, for over 3 decades and we have perfected the best and fastest way to see results. Check out our fast track sourcing training we do in April. In 4 days find a product, supplier and have samples ready to go (this takes months and months to do on Alibaba – do it in 4 days)
Will I have to invest a lot of money?
Absolutely NOT!!!!! Of all the product scaling strategies out there (retail arbitrage, wholesale/dropship and Private Label) Private Labeling requires the lowest investment. Secret formula we use… We are all about low investment and high return. Our secret 60 year old formula, Neil acquired from his father’s successful private label business, is foolproof to getting cost down and results high. All of which we share with our students in our training.
How much money do I need to invest in products?
This all depends on the products you are looking to add to your business and where you are manufacturing the product. But on average most of our clients first investment is in the range of $1500-$2000. But again it depends on your product.
I am a service provider. Is this right for me?
Excellent! You don’t need to know anything about products. Anyone can private label a product. It is easy to learn and implement. And our training goes through each of the 5 step process so that you can implement easily. Our 13 year old son used the strategy to created his own Private Label brand and many of our clients are service based businesses who have never sold a product in their life and they are doing it.
Great news: You are inquiring at the perfect time. This is the year of the service based business. Service based businesses are just now learning of how awesome our Private Label Product strategy is and how businesses are adding thousand of extra dollars to their business monthly. We know you love what you do and much of your work is trading time for money and by doing that you are making an impact in your clients lives. But what about those clients you cant reach but still want to benefit from your service? You can reach those clients globally with products. As well those products are reinforcing your services and credibility with the clients you already have. Supporting them even more.
What is the success rate?
We know our system works! We wouldn’t be using it for the last 35 years if it didn’t. If you are committed to doing the work and following each step to completion then you will see results. This is not a get rich quick scheme and success does not happen the next day. So will you be making million in a week with just $1, like you may have heard on social media? NO!!!!!! You are growing a business and business growth takes time. If you work it and nourish it you will see huge results! Our system works!
Do I have to sell on Amazon?
NOPE! Amazon is not the place you will make millions. We encourage you to use our knowledge and resources to think bigger so you make a bigger impact and more profit.
How much time does it really take to launch?
This is going to depend on how much time you put into working through the steps. Typically 90 days is the average time it takes to find the product, supplier, samples and product to get ready to launch.
Do I have to look for products made in China?
We have private labeled products and worked with manufacturers in over 20 countries. No, you do not have to private label products in China. However, most products are made in China. Even so, there are many products we don’t recommend to source from China and recommend sourcing locally.
What is the biggest reason I should do this?
If you are looking to make an impact in your industry on a global scale and add additional revenue on a monthly basis and you are NOT private Labeling products right now; then stop everything and get registered for our FREE training. This training will show you exactly how you will benefit from using our Private Label Strategy and how to get started!
