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What is Private Label? What is White Label? And how do these programs differ from just buying a product at wholesale and selling it yourself? In this blog post, we are going to explain the differences between these programs and how they can help your business grow or outright define it from others. Some people will use Private Label and White Label interchangeably, however there are major differences that many do not understand. They will say that Private Label has to do with products, whereas White Label has to do with services. But, saying one term has to do with products and the other with services is incorrect, especially when considering the etymology of the term White Label. “The name derives from the image of a white label on the packaging that can be filled in with the marketer’s trade dress. Its origins can be traced to white label promo vinyl records.” Thus we can see that Private Label is not only meant for products. Read on to find out how they differ, how they can benefit your business, and how you can make the most of them.
The major difference between the two is who exactly specifies what the final product will contain. With a Private Label relationship, the buyer ultimately controls the design, ingredients, parts, or offerings. On the other hand, a White Label relationship means that the manufacturer controls the design, ingredients, parts, or offerings. However, in a White Label relationship, the manufacturer may offer a range of customization options for the buyer to choose from. This might sound confusing, but do not worry, it is not. Keep reading below and it will all make sense in a few more paragraphs.
A wholesale program is essentially making you just a reseller of products. In contrast to the other choices, this means that you would be buying products from the manufacturer or wholesaler with their brand names on them. Most of the time this is the right choice for anyone starting off in the industry as well as anyone looking to be a wholesaler or distributor themselves. In this relationship, you or your business would buy the products from the manufacturer or wholesaler with their established label already on it. You or your business would then resell the product to your customers or other distributors in the area or online. A wholesale program can be a great choice for businesses looking to add another product to their inventory or to flesh out their current lineup.
Learn more about our CBD wholesale programs
Pros:
The product may already be a well-known brand
Less Expensive than Private Label or White Label programs
Cons:
You don’t get much-desired brand recognition
As mentioned above a Private Label product is controlled by the buyer. It is manufactured under contract using a third-party manufacturer, but then sold under your brand name. As the buyer, you have complete control over the final product, including how it’s packaged, what ingredients go into it, and how the final design of the label looks. In most cases, you would pay to have it made then it is shipped to your store or warehouse. However, sometimes there are companies that will store and even drop ship it for you. Once your product is produced you are then able to sell it to other wholesalers or directly to the consumer.
Pros:
Cons:
Learn more about our CBD Private Label Programs
With White Label products the buyer still has some control over the final product, but it is often very limited. A White Label product is manufactured to a manufacturer’s standard, but then sold under your brand name. As the buyer, you only get to control what the final label will look like however, some manufacturers may have a variety of customization options to choose from. In this relationship, the manufacturer is the expert in producing the product that you are looking for. Oftentimes, they will already be producing this product under different brand names, therefore they often dictate how it is packaged and what actually goes into the final product. Whereas you will specify exactly what goes on the label. Just like a Private Label product once your White Label product is produced you are then able to sell it to other wholesalers or directly to the consumer.
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Learn more about our CBD White Label Programs
We are excited to announce our Private Label and White Label programs in addition to our Wholesale Program. If you have dreamed of starting your own CBD brand from the ground up, then be sure to contact us about our programs and see how they can build your business and increase your bottom line. If you have any questions about any of these programs, then be sure to reach out to us at (575)546-0875 Mon to Fri 9 am to 5 pm MST or stop by our contact us page. We look forward to helping you find the best option for your business and we cannot wait to grow together!
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