Going the private label route for food and beverage items is an excellent way to increase margins and expand reach. According to Nielsen and the Private Label Manufacturers Association (PLMA), sales of these products hit $128.6 billion last year, a 4.4% increase over the prior year and a 22.3% increase in unit share.
Choosing a private label manufacturer to create and sell these products with can be difficult. There are plenty of choices, and care must be taken to select the right partner to work with to guarantee mutual success.
Vetting different manufacturers for a private label product can be a tedious and difficult process, but here are some items to keep in mind:
Create a Unique Product
The first step should be to create a unique product. It would be a mistake to send something to market that isn't going to fill a need or create a positive customer experience.
A significant amount of time should be spent on market and product research on the front end so that adjustments don’t need to be made later. Even so, finding a manufacturer that is amenable when changes to the product are needed is key.
Consider Protecting The Design
If the design is truly unique, some steps should be taken to protect it before a private label product launch. This might involve securing a patent.
Something else that can be done to protect a brand is to set clear policies and procedures that define the right priorities. Once manufacturers have these in hand, there won't be excuses for falling short.
Ensure Quality and Timely Delivery
There is a common misconception that private labeling translates to lower quality. This doesn't have to be the case, and companies can help smash these mistaken beliefs by choosing a manufacturer that is going to deliver a quality product and promise timely delivery.
Some of the questions that should be asked of any prospective manufacturer include:
What is your average delivery time?
Are there any hidden charges?
How do you ensure ingredient and final product quality?
Does your company offer product storage?
What is your minimum order quantity?
Can you produce a custom formula?
Is someone available for support?
Who to contact to ask these questions depends on the brand owner’s goals. For a domestic manufacturer, directories like MFG, ThomasNet, and Makers Row are an excellent place to start. For overseas manufacturing, check out sites like AliExpress, Alibaba, and IndiaMart.
Secure Graphic Design and Custom Label Services
The partnership formed with a custom label provider will play a significant role in the success or failure of the private label product. Even though many will claim to be the best and promise to deliver what is needed, it will come down to due diligence to make the right choice.
If your company would like to learn more about the benefits of private labeling, the team at Century Label is happy to help. Contact us now to set up a free quote or answers to any of your questions about private labeling.