Find the best fit for your brand

A private label brand is one owned by a retailer or supplier and manufactured by a contractor or third party, under its own label. Companies that opt for private label manufacturing pay less for their products.

A lower price naturally equates to a higher profit margin. On average, a private label retailer experiences 10 percent higher profit margins than a traditional one.

Retailers normally have little, if any, direct dealings with manufacturers. But private label retailers avoid this by operating a different business model, which allows them to have control of the look and branding of their products.

If you are considering private labelling or have already ventured on this route, you’ll need to find a private label manufacturer that offers the best fit for your business. There are a few pointers to consider.

Alignment of core values

This is the single most important factor in any strategic business relationship.

Finding a private label manufacturing partner that aspires to be the best in what it does, has a solid foundation, grasps and upholds your vision and has a desire for higher standards, will be critical at every decision-making point in your business relationship.

The retailer must be confident that, even during the difficult discussions, the manufacturer will be committed to ethical behaviour under all circumstances.

Your private label manufacturer must also believe in your brand guarantee, which ensures there is no suffering of any undue losses.