Private label products are those that are generally provided or manufactured by a company and labelled with the brand of another company. When done right, these products will offer your store extra product lines to sell and a higher degree of trust and credibility with your customers.
You have probably bought private label products before. As people become more comfortable with these private labels and generic-brand items, your store should be more sophisticated in the way you present your private-labelled product lines. If you are looking to provide a line of private-labeled products, here are the benefits you can gain from it:
You will Have Increased Margins
As private-labelled product lets you bypass the brand name, the vendor saves money on the extra cost. The vendor should spend money on promoting branded products; however, with private label products, you just pay the cost of the product without paying a premium for the brand name or the marketing campaign.
You can Have Full Control of the Price
If you are like other retailers, you may match prices. Private label products such as private label of frozen fruits can be obtained from the supplier without their label on it. You will enjoy full control of the price. This means you may charge full price for the product as your competitor puts the branded version on sale. Depending on your supplier, you may be able to change the product to address issues and customer complaints.
The Products Help Build your Brand
As you get private label products, you can build your brand. For instance, if you have a frozen fruit store, you could make your own store labels for the frozen fruits you obtained from private labels without labels and attached your own label when they arrive in your store. Also, you can custom design your labels.
Improves Customer Loyalty
If your customers love your private label products, they will want more from your store. In the retail world, building customer loyalty is important to keep your sales coming. With the right private label products, you can keep your customers returning again and again.
Private label products can be an excellent benefit for your store but you need to be aware of the risks. Don’t rush into expansions and expensive marketing campaigns. Just ease into it by testing with a product or two instead of the whole line of items. This way, you will know what products sell and which don’t.