The pet industry is booming right now, marking the perfect opportunity for businesses to private label products. Not to be confused with white-labeling, a private label brand is when a business sells a product that is exclusively designed for them. Whereas a white-label brand sells a generic product that a wholesaler sells to multiple clients but with the company’s own branding.
Here are seven benefits of private labeling a pet brand that you should consider:
Wholesaling is the practice of selling a product at a lower price to other companies so they can determine their own retail price. Reselling is possible through private labeling because the brand controls the price and availability of the product. This benefit gives private label brands a competitive edge, as they are able to create a new sales channel through retailers reselling their product.
With white-labeling, companies are completely dependent on their wholesaler to create a new product. This means that if a new niche emerges in the pet industry, they have to wait until the manufacturer designs or formulates the new product. This dilemma does not exist with private labels because the brand is in complete control of their goods. This enables private labels to remain adaptable, jump on emerging market trends, and meet new demands.
With private labeling, there are no restrictions when it comes to promoting your brand and product, as you own the product design or formula. This enables private labels to establish brand loyalty with their customer base, which is essential for retention. Brand loyalty and trust is crucial in the pet industry as pet owners tend to treat pets as their own children.
Higher Profit Margins
With complete control over product formulation and packaging, private labels can minimize the cost of goods (COGs) to increase their profit margin. This is unlike white-labeled products which are often restricted to specific ingredients and packaging, leaving no flexibility for cost control.
With white labeling there is a chance that a brand has the same product as their competitors, just in different packaging. This makes it very difficult to differentiate your brand within the market. However, private labeling allows businesses to customize their product design or formula to be uniquely theirs.
Apart from being able to control the costs of product formulation and packaging, private labeling through a third party manufacturer significantly lowers operating costs. By choosing an established manufacturer, brands can ensure that they are producing their products as efficiently as possible. They also eliminate the overhead costs that come with personally storing and shipping their products.
Less Risky Research & Development
When partnered with an experienced manufacturer, brands can conduct product research and development with less risk. Businesses can experiment with new formulas while still manufacturing their best sellers.
Are you ready to private label your pet brand?
e2e handles all things product development, from formulation and manufacturing to graphic design and packaging. With our team of experts, we can make your pet product vision a reality.