Like many manufacturers, Whip Mix fabricates products for other companies, which are then private-labeled. Some laboratories fall into this business model as well, either providing outsourced products which are then branded by the lab-customer, or having products made for them. Are you one of them?
Here are a few tips that will help your private-label business be the best it can be.
The right combination
The first thing you need to determine is which private-label solution is right for your business? Are you adding a new brand solution to an existing product line? Will it complement your existing brand or will it be a completely new product line? If you’re looking to launch a private-labeled product as a part of a brand new product line, consider how it will impact your business. Do you have the know-how and skills to be able to effectively sell it and offer after-sales support? Hopefully, you will be able to depend on your private-label service providers to offer after-sales support. Just be sure that both parties understand exactly what is expected of each of them and make sure you have established proper communication.
Branding may be the most crucial part in developing a successful private-label product. Keep in mind that your new product should be a good fit with your product offering. Make sure that it is in balance with your existing products and services and that it complements what you sell to your customers.
Packaging & Labeling
The packaging and design of a product are important. Make sure to use your most creative minds to make appealing packaging. Sometimes that’s as important as the product itself.
If you private-label a product that targets your existing customers, consider using different marketing channels than you usually do - at least to kick off your product launch. Strategize with your team and develop a different approach to how you will market it.
Some companies take on private-label products as a means of creating an upselling strategy. They may plan to have the new addition work as a premium product, an upgrade product, or a line addition that will eventually deliver more value to the customers and make them feel like they got a better deal.
Other things to consider
- Know who your customers are and what their buying habits are
- Know what products or services they are already taking advantage of
- Know how your new product will fit their business
- Even though private-label products may bring benefits to your business, it does have some risks. Test the idea with one or two products versus a whole product line. There are still many customers who prefer the known brand!
- Be careful and conservative. It can work for you if you move slow and steady.
Many dental laboratories are experienced higher sales by using a new approach to marketing and selling products they have been selling for years. Adding brands to your line can increase your value to the customer.