Starting a new business that produces goods can be a challenge if you are not familiar with private label manufacturing and white label products. Take for example a supplement company. You have already established your name and designed a logo. The branding is there, but the product isn’t. Finding a private label manufacturer is the next step. You can decide all the ingredients that go in these private label products, as well as determine how it’s packaged and what goes on the label. For a brand new business, this is a pretty incredible opportunity.
When you are looking into private label manufacturing, you will also come across white labels. White label is similar to private label manufacturing, except the branding is not already on the package. This part of the process is left for retailers to take care of.
There are pros and cons to both choices. As a small business, you will have to determine which route to take. Here are a few things to keep in mind when making your choice.
Private Label Manufacturing
Private label manufacturing is a great choice when you want the full service. Private label manufacturers will design the product based on your specifications, how it’s packaged (is it packaged in plastic, cardboard, etc.), and what the label looks like. For private label supplements, this can be the entire manufacturing process, leaving more time to make a marketing plan and get your product out there and into the hands of consumers.
As you might have assumed, this is a great choice for supplement companies just starting out, or other small businesses looking to get things rolling. The downside of this is it can be more expensive than the alternative, which is a white label.
Much like private label manufacturing, white-label manufacturing is done by a third party. The only difference is that with a white-label, it is up to the retailer to do their own branding and logo. With regards to supplements, white-label supplements will come packaged in a plain container. You cannot sell the container it comes in unlabeled, so you will have the responsibility of branding it yourself.
So why choose a white label over a private label? The most common reason is cost. It is cheaper to get a product manufactured and delivered to the retailer without a logo than it is to get the full service. When you are a new business just starting to establish yourself, the cost can be the determining factor in which route you take. Besides costs, the two services are similar in many ways.