| I was having breakfast at a local restaurant the other | | | | brings up over 10,000,000 pages. Add your industry to |
| day when I noticed on the table there was a bottle of | | | | that search and you will have a wealth of information |
| hot sauce with the restaurant's name on it. I was | | | | more specific to your needs. For instance, the search |
| impressed because I knew this was no chain - it is just | | | | "private label coffee" brings up over 13,000 pages. You |
| a small independent restaurant who was taking | | | | should do this to see what your competitors are doing |
| advantage of private labeling. It is one of a growing | | | | in your industry, which actually could give you many |
| number of small restaurants that enhance their brand | | | | ideas. |
| by putting their own name on products. | | | | The labels are a key component to your private label |
| First, let's be clear about what I mean by Private | | | | program. You should choose an experienced label |
| Labeling. According to Wikipedia, the online | | | | printer preferably with digital label printing capabilities. |
| encyclopedia, private label products or services are | | | | This advantage of digital label printing is that you can |
| typically those manufactured or provided by one | | | | offer small quantities to your private label customers |
| company for offer under another company's brand. So | | | | and then "gang run" many jobs together to get a |
| this covers everything from Wal-Mart brand products | | | | better price for your labels. There are typically no |
| to the small restaurant putting their label on someone | | | | expensive plates or setup charges with digital printing, |
| else's hot sauce. | | | | so you can easily have dozens of versions on the |
| It is amazing the number of businesses now that are | | | | same print run. You can even add your own brand |
| engaged in some form of private labeling. Restaurants, | | | | labels to these jobs, so your own per unit label costs |
| hotels, spas, hair salons, even car dealers are all putting | | | | will be reduced. |
| their own brand on products such as hot sauce, lotions, | | | | Reaching the Next Level |
| shampoos, coffee, lip balm, bottled water and wine. | | | | If you continue to do all the production work yourself |
| Many corporations want to put their own logo on | | | | there is obviously a limit to how large your private label |
| products that they giveaway to reinforce their brand. | | | | business can be. If you want to reach the next level |
| The corporate gift market is particularly busy around | | | | you will need to hire the services of what is known as |
| Christmas. There are also many small businesses that | | | | a Contract Packager. Basically, these are companies |
| want to appear more professional by having their own | | | | that take your product and packaging and put it all |
| brand of products to sell - coffee and bottled water | | | | together for you and then ship it to your customers. |
| are particularly popular here. | | | | They can even mix your ingredients for you to create |
| Getting Started | | | | your end product. You need to be at a reasonably high |
| So as manufacturer how do you get started selling | | | | volume for this to be worthwhile, but the beauty of |
| your product via private label? The easiest way is to | | | | outsourcing your production work is that it scales very |
| just start selling to other local companies. If you sell | | | | easily - and it leaves you time to focus more on |
| coffee then start with the local cafés and | | | | bringing in business. |
| donut shops - many companies are happy to support | | | | The Contract Packaging Association ( is the trade |
| other local companies, particularly if they can get their | | | | group for contract packagers and their web site has a |
| own brand name on the products. Obviously, your | | | | wealth of information. You can read about the criteria |
| existing customer base would also be a good place to | | | | you should use when choosing a contract packager. |
| start. You can offer to put their name and logo on the | | | | They can even help you find a contract packager in |
| labels that go on your product. | | | | your area with the capabilities that you need. |
| Once you have a few private label customers you | | | | Once you have a relationship with a contract |
| can then start a formal "Private Label Program" giving | | | | packaging company then you can really begin to scale |
| prospects examples of what other companies have | | | | your business. All the large supermarkets and drug |
| done. One important point to note is to be sure to | | | | retailers are increasing the number of products that |
| make it as easy as possible for your customers. You | | | | they sell under their own label. Store brand products |
| should offer to do all the work for them including the | | | | now account for 25% of sales at US supermarkets |
| labeling, so they will just receive the finished product. | | | | and 40% of sales at Wal-Mart. Now, I realize it is going |
| You may end up having lower margins on your private | | | | to be difficult to get your labels in to Wal-Mart or any |
| label products, but you can make up for that with | | | | of the big national chains, but there are plenty of |
| increased volume. | | | | smaller regional supermarkets and drug store chains |
| You don't have to do it alone in your private label | | | | where you will have a better chance. |
| venture; there are plenty of resources out there to | | | | It may be just a dream to have your products as the |
| help you. There are two main publications that you can | | | | store brand at a national chain, but if you don't start out |
| read: | | | | down the private label road you may never know the |
| Private Label Magazine - | | | | potential for your product. If you are completely |
| Private Label Buyer - | | | | focused on selling your products under your own |
| There is also a national organization - the Private Label | | | | brand at wholesale or in a retail store you could well |
| Manufacturers Association ( that puts on a big trade | | | | be missing out on a huge growth opportunity. The |
| show every year just for the private label industry. | | | | private label trend shows no signs of slowing down - |
| A simple search request for "private label" on Google | | | | you could very well find that the sky is the limit. |