From essential oils to luxury cosmetics, private label companies manufacture products for thousands of popular brands. Choosing a private label manufacturer can free you to focus on product development, marketing, and other key functions, leaving production to a partner. There are many benefits to working with a private label company, but finding the best match can be a challenge. In this post, we share the tools you’ll need to get started working with private label suppliers. We’ll dig into why working with private label products makes sense, show you what to look for in a supplier, and offer some pointers on how to find private label manufacturers for your industry.
What is Private Label?
Private label goods represent a partnership between a brand owner and a third-party manufacturer who supplies the products the brand sells. In essence, you’re using someone else’s manufacturing capabilities to bring your product line to life. Private label product offerings can include everything from cosmetics to organic snack foods.
Why Choose Private Label?
Using a private label company comes with many advantages compared to the alternatives — either establishing your own manufacturing facilities or simply reselling brand-name products. Here are a few of the most compelling reasons to go private label.
Increased Profitability
Often, private label products offer higher profit margins. That’s because you have more control over the price you pay for the finished products and how much you sell them for. When you’re reselling someone else’s goods, they set the cost of the finished products, and you’re left to compete on price with all of the other resellers in the marketplace.
You Control the Branding
Being able to craft the branding is one of the most exciting parts of owning a private label company. How your goods are packaged and labeled has a direct impact on how attractive they will be to consumers. Working with a private label manufacturer gives you total control of product design and labeling decisions. When you’re selling someone else’s products, those decisions, good and bad, have already been made for you.
Scalability
Many private label companies don’t just sell one product. As time passes, entire product lines emerge. Partnering with a high-quality private label manufacturer allows you the flexibility to more rapidly increase production of existing products and the ability to more easily develop new ones.
What to Look for in a Private Label Manufacturer
Not all private label suppliers are created equal. You want a partner with high quality standards, responsive customer service, and commitment to production timelines. Here’s what to look for in a manufacturing partner you’ll want to keep for the long-term.
High Quality Standards
The best private label manufacturers have a strong commitment to consistently producing quality products. Solid private label producers won’t cut corners or deliver inferior products. Requesting samples from prospective private label manufacturers will help you evaluate quality.
Strong Industry Reputation
When a company does a good job, word tends to get out. The same holds true when things go poorly. The internet is a good place to learn about the experiences other businesses have had with private label manufacturers you’re considering.
Certified Production Facilities
Many private label suppliers maintain industry-certified factories. Examples of certifications include ISO (International Standards Organization), GMP (Good Manufacturing Process), or other industry-specific certifications, like USDA Organic.
Low Minimum Order Quantity
Especially when you’re just starting out, partnering with a private label manufacturer that has low minimum order quantities is a plus. When you’re piloting a new product, you don’t want thousands of units left over if things don’t go as planned.
How to Find a Reputable Private Label Company
The internet holds a wealth of resources for connecting with private label producers. Here are some places to look for your industry’s top manufacturers.
Starting your search on the world’s largest search engine is the way to go for most people. Search results will highlight the major players in your chosen industry. Adjust your search terms to easily locate private label manufacturers serving more niche markets or those with specialized certifications.
Trade Shows
Industry trade shows can be a great way to connect with the best private label manufacturers. These gatherings provide an opportunity to cover a lot of ground in a short amount of time. Meeting each manufacturer’s representatives in-person also gives you a chance to ask specific questions and get a better feel for the company culture.
Online Communities
Industry-specific chat boards are a great way to gather information on individual private label manufacturers and learn about others’ experiences working with them.
Thomasnet
Thomasnet is a search tool that caters to individuals looking for suppliers. You can search suppliers by category, company, or brand.
Best Private Label Industries
Some industries have more options for private label partners than others. Here are the top industries that offer high growth potential.
Cosmetics
The beauty industry is booming. From organic facial cleansers to neon-colored lipstick, there’s demand for products that satisfy all tastes. Creating your own line of private label cosmetics is easier than you’d think!
Dietary Supplements
Personal wellness is a trend that’s shown robust growth in recent years. Developing your own private label nutritional supplements is an exciting way to share your passion for better health.
CBD Products
This hemp extract is taking the wellness world by storm. From salves to tinctures, CBD-based products have officially gone mainstream.
Essential Oils
Essential oils are consistently popular sellers. These plant-based oils are used for everything from bubble baths to baking.
Still deciding on the right product for your new venture? Here are the trending products for e-Commerce this year.
The Right Manufacturer Can Make All the Difference
Marketing your branded private label products gives you flexibility and can be more profitable than other options. But working with a private label manufacturer to create your products can also feel overwhelming. Careful research and planning on the front end will help you connect with a quality private label supplier on the first try, resulting in happier customers and a more profitable business.
Reach out to learn how we help our clients who work with private label manufacturers.
You might also like:
- How to Start an Online Business: From Product to Packaging
- How to Sell Private Label Supplements on Amazon
- Ultimate Guide to Choosing a Co-Packer
