Monday, March 20, 2017

Ways for Sellers to Find New Private Label Manufacturers

Inventors of just one product typically won't have a lot of luck selling that product to mass merchants, because mass merchants don't want to buy from small, unknown companies that could be unreliable suppliers. But rather than accept defeat, inventors often turn to private labeling. They find another company that does sell to mass merchants and offer their product to that company to sell under its name.
Products that are natural extensions of other product lines are ideal private-label products. For example, your product might be a rack that allows people to bake four sheets of cookies at a time instead of just two sheets. This product may not have enough appeal to get mass merchants to carry it from a separate company. But the product is an ideal complement for a company that sells other, similar baking products.
As long as your manufacturing costs leave you enough profit room to hire a contract manufacturer, one advantage of a private-label agreement is that you might be able to get a big order or a commitment before you actually have to produce a product.

Making things easy. Ask the buyer for a purchase order, and state that you'll supply the product in the buyer's package, or that you'll modify your package to the buyer's specifications. If you are selling to a retailer, you might want to offer a display, and you could even show a diagram of what complementary products yours should be displayed next to.

Paying attention to your product's packaging: Your private-label buyer is probably not going to invest any money in marketing. So potential buyers need to see your product and immediately realize its benefit. If you have a consumer product, take time to package your product so it sells itself. The packaging and design of a product are important if your private-label agreement is with a retailer.

Understanding the competition. Companies take on private-label products primarily for competitive reasons. To sell the concept effectively, you need to know your target company's competitors and how your product improves the company's position in relation to them.

To find potential private-label partners, do an internet search for "private label," and you'll find hundreds of companies that market private-label products in dozens of ways

I think the best way to start any endeavor is to ask yourself why. Why are you creating a private label product in the first place?. Most people see private label products as an opportunity to provide consistency in revenue as well as a means to cut down on overall labor.

When it comes to the best private label products the simpler the better. There are a few rules that I have when it comes to products that I brand myself. It's not rocket science, but it works:

Which have professional and highliy equipped laboratory & manufacturing teams working for you. 

Is the item Evergreen? Meaning, will someone buy this product over and over again (for example, people will always buy shampoo. When they run out, they will buy more shampoo.)

·  Are people actually searching for your kind of product? Imagine spending thousands of dollars on your own branded product only to find out that nobody is even looking for it.   I don't mean that they aren't searching for your specific brand, I mean that they aren't even looking for your type of product.  The easiest way to test what people are looking for prior to spending a lot of time and money on product id to do keyword research.

A really easy way to get private label product ideas quickly by people that create and manage private label products for a living is through a site called MooFlip.  They have vendors that do online arbitrage. .  It's a great way to save a ton of time researching private label products.

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