If you have been to the grocery store, you have probably noticed water bottles, canned foods, and vitamin supplements that all look alike save for their labeling. You may recognize some brand names, but other names seem to only exist in the retail store itself. This is known as private labeling, in which a company will hire a manufacturer to create a product that the company can sell under its own label.
For the vitamin industry and others like CBD that provide supplements, the process is basically the same. This means that for companies that want to sell their own private labels, the opportunities are considerable.
How It Works
Basically, if you run a store that sells products you are limited in the number of options that are available;
- Create your own products
- Sell well-known brand products
- Sell your own private label products
Creating your own products takes a considerable investment in research and development. And while brand products can be popular, you only earn a fraction compared to selling your own. Private labels offer a third solution in which companies can earn more money selling their own products that are made by someone else.
Sometimes called a contract manufacturer, this is a company that has done the research and development to create a safe product or supplement in this case for sale but does not do the legwork to get them into stores. Instead, as the owner of the store, you can sell their product under your label. In essence, they provide the product, and you do all the work required to sell it.
That includes creating your own label to put on the supplement, placing on the shelf, and doing all the marketing work to get customers to make the purchase. You will pay the manufacturer a percentage of the sale, but it is usually far less compared to brand-name supplements. There are considerable benefits to this approach.
The first advantage is that you save a considerable amount of money compared to developing your own product. By selling one that has been created by someone else, you can put the money instead of marketing the supplement.
Experience: You will need to find a qualified, experienced CBD manufacturer, but that should not take too much research. A good manufacturer has supplements that meet all FDA guidelines, are safe to use, and effective in what they do. This means that you get the best product for the price right away.
Expansion: By obtaining a private label CBD solution, you are now generating more profits as a result. You can build up your own private label brand through the selling of supplements and expand at a future date with your own. It is a great way to compliment the brand supplements you have on the shelf and garner more profits as a result.
Private label supplements are not just a third option for companies, and they can represent a gateway towards creating their own supplements and expanding their business. This is why you should consider private label supplements as an option.