As we already know due to a previous blog, white label products are manufactured by a third party and are subsequently bought by retailers who then add their own branding and logos to sell onto their customers to buy. What then, are the benefits of these products?
By purchasing white label products, a business is taking advantage of buying from an expert company who are renowned for producing that particular item. Buying goods to sell through this avenue will allow a business to avoid the manufacturing process altogether, which will save a significant amount of time and money. By saving money on the manufacturing process, retailers can transfer the savings onto the customer which creates value for them. This can strengthen the loyalty between customers and the business, which allows for repeat custom, a technique that supermarkets have become very effective at.
Both the manufacturing company and the selling company benefit through the process of white labelling. Although there is a smaller profit margin for the manufacturers, they get a faster payment to cover the cost of creating the product — receiving a quick turn around on their costs. The selling company, on the other hand, will have to wait until their customers purchase the product in-store or online. This being said, the retailer gets to set their own profit margins, so they can seek the largest return on their investment.
For any business, whether they are new or old, there are massive risks attached to bringing out new products to the market. According to Harvard Business School professor Clayton Christensen, over 30,000 new products are introduced every year, 95 percent of which fail. The question is, why do so many new products fail, and are white label products a way around this? One of the main reasons why so many new products fail is that they fail to bring something new to the marketplace. So why would a business try and develop their own product and risk it failing if they can buy an existing successful product and put their name on it?
If your manufacturing business wants to exhibit your high-quality products at the UK’s leading event for resellers of white label goods in front of thousands of market-leading Amazon and eBay sellers, decision-makers from businesses around the UK, and new startups looking for new products to sell. Then please get in touch with Event Director Jane Wilde at firstname.lastname@example.org or 0117 929 6099.
For Whitelabel Expo Las Vegas, please contact the Event Director Mark Johnson on Mark.Johnson@prysmgroup.com or 702.707.7627 - extension 6001.