Breaking into the mass market with a single product is a tricky proposition. Most large-scale retail companies are unwilling to buy from small companies that they are unfamiliar with, as they may not be the best suppliers. This hurdle can be overcome when you use a private label and sell your items through a proven supplier.


What Is A Private Label? 

Generally speaking, a private label is a product created by a company that augments the product line of another, usually a larger company which they, in turn, sell at retail stores. An example of a private label company is Maxvera Wellness. They formulate, and manufacture the private label CBD products in their nano laboratory and then sell those products to other smaller CBD stores throughout the nation. Before sending the products to these stores, they put that particular company’s label on the CBD products.


There are three distinct advantages that a private label will boost your business efforts.

Access to Large Retail Stores

From CBD stores to retail shops, to electronica and much more, whatever you are private labeling, your product has the opportunity to be seen by a large number of people. This is how small businesses can compete against larger competitors by offering a superior product or one at a lower price that attracts sales. Depending on the distribution of the supplier, you may find yourself with a considerable amount of profit margins and help you compete with the big guys.


Smart Marketing

Having a private label with your logo and branding on it by itself will be a differentiating factor if done right. Once on the shelves, your product will do the work in attracting customers. This does not mean you cannot advertise, but generally speaking, the profit margins are such that your company probably will be better off pulling back on an independent marketing strategy.


Expand Your Product Line

While agreements between the private label and supplier are restrictive, remember that if you have multiple lines of products, you can sell some on your own and others through a private label. In fact, many businesses will sell their own products in larger markets and private label other products in smaller markets. And believe it or not, some of the biggest names in supplements are themselves a private label.

Using a private label is well suited for those who have invented a singular product that they wish to market to the general public but lack the resources to get it on the shelves. But it also is perfectly suited to companies that offer a multitude of products and wish to private label some in smaller markets, which saves on advertising.

Of course, you’ll need to create a product line and branding strategy that will cause your product and label to stand out. However, the private labeling potential profits are usually significantly better than manufacturing the products in-house. For those who have access to a retail location or can put their products on Amazon, offering a private label can really help your business grow.