Handing any form of control over the success of your business to a third-party company can seem daunting, making it no surprise that some are apprehensive when they first hear about private labeling. However, this manufacturing model has proven to be extremely successful, with more and more businesses, both large and small, choosing to go down this route.
Wondering how private labeling could benefit your business? Keep reading as FLPL explains!
1) Your Products Can Be as Unique as You’d Like
Many assume that private labeling will limit them when it comes to how unique their products are. However, this isn’t the case at all. Unlike white labeling, which is when you purchase generic products that other companies can purchase too, you can have as much input as you like when it comes to the formulation of your private label products.
Looking to create a face cream that’s infused with a rare and unique marine botanical? No problem. Want to formulate hair care products featuring an exclusive exotic ingredient? With private labeling, you can do all of that and more. So long as you team up with a private labeling manufacturer who’s prepared to push the boundaries, just like FLPL has done on many occasions, you’ll be set for success!
2) You Retain Full Ownership Over the Products/Formulas Created
Another private labeling misconception is that ownership of the created products is handed over to the private labeling manufacturer. Again, this is false. Instead, one of the reasons why private labeling is so beneficial is because full ownership will remain with your business. If, further down the line, you want to take control over manufacturing yourself, you can part ways with your private label manufacturer and take your products/formulas with you.
Of course, we’re not saying that some companies aren’t shady when it comes to selling designs/ideas. However, this can happen at any point along the supply chain. Even if you work directly with a factory, they could do the same. The key to avoiding this is to find a reputable private label manufacturer with plenty of credible experience behind them, such as FLPL!
3) Costs are Often Lower
Surely bringing another company into your supply chain only means that costs will rise, right? Not necessarily. Yes, your private labeling manufacturer will need to be paid, resulting in an additional cost. However, working with a private label manufacturer can actually end up saving you money in the long run.
How? For starters, there’ll be less money spent on mistakes. As you’ll soon find out, private labeling drastically minimizes the risk involved. You also won’t need to splurge on such a large minimum order. If you were to work directly with a factory, they would likely require you to place an order in the tens of thousands. However, many private labeling companies require far less. At FLPL, our minimum order quantity is just 5000. This is much more achievable for a small business. It enables you to fairly test the market out before scaling up to such large numbers.
4) You’ll Have Full Control Over Pricing
Not only will your costs usually be lower when private labeling your products, but you then have full control over your final pricing too. As you can imagine, this is great news for your profit margins! While private label products were traditionally viewed as budget-friendly options, there are now plenty of high-end private label brands around too. Aim for the luxury market and, with your low costs, you’ll be raking it in in no time!
If you’re unsure about how to price your products, a good private labeling manufacturer will be able to help. At FLPL, we have experience producing products for both high-end and budget brands. This makes us well-placed to ensure that your products, as well as your prices, target the sector of the market that you’re hoping to reach.
5) You Won’t Need Any Manufacturing Experience
Want to manufacture a line of products for your business but don’t have any manufacturing experience to fall back on? This is a big hurdle that many new brands face. The manufacturing world is a complex one and a lack of understanding and knowledge can really hold you back.
This is one of the biggest benefits of turning to a private labeling company. They’ll have all of the manufacturing know-how that you need to ensure success for your business. At FLPL, for example, we work with factories in both the USA and Asia. This will save you from having to source factories yourself. We take care of all of the ordering, liaising, quality control checks, and more, saving you from making any costly manufacturing errors. At the same time, you can be as involved in the process as you’d like, making this a great learning experience for you too!
6) Branding and Packaging Can Be Taken Care of Too
While some private labeling companies focus solely on manufacturing, others, like FLPL, offer a wider range of services. We want to do all that we can to help ensure that your business succeeds, and manufacturing is just one part of that.
Once your products are manufactured, branding will play a big role in how well your products do. This is why we have a team of branding experts on hand who can help to create the perfect brand identity for your business. Once this has been completed, we can also help to design and manufacture the packaging for your products, complete with your new branding!
7) You Might Even Get Help With Marketing
At FLPL, we try to go above and beyond when it comes to the services that we offer to our clients. After all, your success is our success!
This is why we also offer assistance when it comes to marketing and advertising your products. Just like with manufacturing, we know that not everybody will have the marketing know-how needed to ensure that their products fly off the shelves. FLPL, however, does. Together, we can create a show-stopping marketing strategy that will soon have demand for your products soaring!
8) Risks Will Be Minimized
One of the biggest benefits of working with a private labeling company is that you won’t be taking quite as many risks. As we’ve already explained, you’ll be teaming up with people who have decades of manufacturing experience. You’ll still be able to have your say but, at the same time, you’ll be guided by our expertise.
Launching a new brand is always rife with risks, making it worth trying to cut back on these as much as possible. Not only can those risks sometimes end up costing you money, but they could also be fatal for your business. Allow a private labeling company to step in and help and, as a newbie, you won’t make quite so many mistakes!
9) You’ll Be Able to Quickly Adapt to Trends and Changing Demands
One of the problems with going it on your own when launching new products is that you’ll be pretty inflexible when it comes to adapting to trends and changing consumer demands. Why? Because the lead time from placing your order to receiving your products can be very lengthy. By the time you’ve created your new trendy products and have had them manufactured, there’s a good chance that the market will have already moved on.
With private labeling, on the other hand, lead times are much shorter. This is one of the reasons why many larger companies are now launching private label lines of their own. This allows them to keep up with trends while still producing their original product lines.
10) Exclusivity is Up to You
As we discussed earlier, you’ll retain full ownership of your private labeled goods. This also means that you have full control over how and where they’re sold.
Want to see your products on the shelves of major retailers all over your city? Sell them to those retailers at wholesale prices and your dream could soon be a reality. Want to go the opposite direction and encourage exclusivity? Set up your own e-commerce store and sell your products yourself, limiting their availability elsewhere. Again, this is something else that FLPL can help you with!
11) Scaling Up (or Down) is Easy
Scaling up (or down) can be a big headache for a business. Just as you’ve finally sourced the perfect manufacturers for your products, you might then find yourself needing to look elsewhere due to a sudden increase in demand that your current manufacturers can’t cope with. This could lead to your products being out of stock for a while, which could negatively affect future demand and sales.
When working with a private labeling company, scaling up or down is easy. At FLPL, we would take control over sourcing manufacturers for your products. We already have a network of factories in place, which makes it easy to find the perfect match for your requirements.
12) You Won’t Need to Stress About the Legalities
Last but not least, let’s talk about legalities. Every industry has its own regulations that need to be followed. Get things wrong and this could be the downfall of your business.
Of course, figuring out legalities can be a very complex task. It always helps to be guided by experience, which is where a private labeling company can, once again, be a big help. At FLPL, we’ll ensure that all of the products that we create for you adhere to industry regulations. Whether you’re targeting the USA market or want to sell internationally, we’ll make sure that your products fit the bill.
Private Labeling With FLPL
As you can see, there are so many advantages to working with a private labeling company, making it hardly surprising that so many businesses are now choosing this path. If you would like to know more about how private labeling works or whether this manufacturing method would be a good fit for your business, click here to contact FLPL today!
