Private Label Spa Products: What’s In a Name?

Private LabelThink about the last time you purchased a “store brand” product. Do you really think your favorite big box retailer makes all of those products?

How do they do it?

It’s simple, really — they have these products private labeled with their name on them.

By taking this chapter from the mainstream retailer’s playbook, you can develop new revenue streams for your own bath and body product business. Offering your products to your customers under their own brand can be a very lucrative endeavor!

The Benefits to Your Customers:

  • Speed to Market – they can quickly establish a product line without the headaches associated with product formulation and creation;
  • Controls Inventory Costs – they can start off with a lower quantity of products than if they had to create a large production batch on their own;
  • New Revenue Stream – offers them a great new way to generate sales, either as a compliment to their existing products, or as something completely new.

Benefits to You:

  • Economy of Scale – purchase larger quantities of ingredients and save money;
  • New Revenue Streams – tap new markets to sell into;
  • Boost Sales Revenues – establish order minimums for private label sales;
  • Cheap Market Research – your clients’ feedback helps you plan future product releases.

Selling Your Clients on Private Label Products

From a production standpoint, private labeling eliminates the costly expenses associated with research and development of new products. Your clients can react and capitalize on market trends by calling upon you to create branded products based on your existing line.

The Introductory Order Package

One of the most effective methods to getting your products into a new retail location is to offer an introductory order package. For private label clients, this package could include a small assortment of trial size products for them to place at their sales counter or within an in-store display, along with full-sized items available for purchase. Based upon the success of the introductory package, a reorder (at established order minimums) would follow.

Limiting the Options

When you first implement your own private label program, you may wish to consider limiting the number of options available to your clients. Offering one or two sizes of packaging, along with a standard label will enable you to control your costs. For clients with more stringent requirements, you’ll need to establish development costs associated with offering additional packaging and labeling options. Make sure that you get a signed contract from your client before you incur any costs for these custom options.

Private labeling has made significant improvements since its black-and-white packaging debut in the 1970s. Today, private label brands have gained mainstream popularity, and are sharing shelves with the national brands. This offers great news for those who aspire to get into the game. No matter what the motivation is, private label is a viable option to consider. It’s a great way to get your product into the market, even if it isn’t under your own name.

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