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Selling Your Own Brand of Products By Private Labeling

Updated: Feb 3


confused person shown being frustrated with text that shows his thoughts that he doesn't know where to start

Don't let the misconceptions of private labeling stop you from starting! It's easier than it sounds...


Our company has been private labeling for other companies (both large and small) for over 20 years now. Over that time period, it's been fascinating to hear how many customers told us they had been dreaming of having their own line of products for a long time... but they just hadn't pulled the trigger on it.


It's certainly not uncommon. These days, most entrepreneurs see the need for marketing their own products. But, there are natural hesitations to doing something new. On top of that, we have found that most business owners have misconceptions about starting their own brands through private labeling. In this article, I'll list the reasons to start your own brand of private labeled products, since that is what most people are interested in hearing. However, I'll also talk about the disadvantages of a private label and clear up some misconceptions about it too!


The most obvious reasons to start your own brand of private labeled products:


  1. Stop your customers from buying the same products you sell at a cheaper price somewhere else. It's easy for your customers to just wait for a large discount sale on Amazon or another online platform. If it's the exact same product you sell... but cheaper... it's hard to fault them for wanting to save money. With your own brand, they can only purchase from you.

  2. Getting residual orders. Keeping your brand name and contact info in front of your customers is always a great idea... if you like reorders.

  3. Help build brand awareness. If you are selling your own products, every time they look at your product, it's another reinforcement of your name and brand being a part of their daily lives.

  4. Enhancing your reputation. When customers see that you have your own line of products, they assume you are more savvy, knowledgeable and established. If you see two similar companies and one of them sells their own high-end line of products, which one do you see as a more successful and established business?


If you're already sold on having a line of private labeled products and are set on moving forward, make sure you put your best foot forward! You can read more about that in another one of our blog posts here: https://www.cassco-bio.com/post/the-reasons-to-launch-multiple-products-when-starting-your-own-private-label-brand 


While all the above are great reasons to private label... are there drawbacks?


There are a few costs to private labeling, but we have found that most people are happy to live with the real drawbacks to gain the advantages private labeling offers (as discussed above).


However, if you choose to build a better future, you will also have some costs.


The disadvantages of private labeling:


  1. It does take time. You have to work with us on the phone and email to decide which products to carry, talk through what your packaging will look like and place an order. If you have time for a few phone (or Zoom) calls and emails, then you won't consider this much of a hindrance. But there is a real cost, in that it takes more time to do something new, rather than to stay the course and make no changes to your business.

  2. It takes money. Of course, if you're buying someone else's brand, marking it up, and reselling it... then you're already spending money on inventory. But, if you've already been doing that, it may not feel like a true cost. It may simply feel like "the cost of doing business". Where a new private labeled brand can feel like "extra" money being spent. We have found that this is something many people simply don't think about initially. But, yes, there is an investment to get started with private labeling. The upside is that it really is an investment and not a cost. Afterall, once you sell the products, you make extra $. Since you don't lose the reorder to a cheaper online seller somewhere else, you actually make much more profit over the year. But, you do have to start somewhere.

  3. You have to think and put your "creative cap" on for a week or two. While it may be super easy to order a national brand, mark it up and resell it... with your own brand, it takes a little thought. Do you want to push the benefits of "being a natural product"? Do you want the packaging to look more technical, so people see you as an expert? Do you want it to be a fun brand, with humorous graphics? We can help you those questions. Most people know what they want, we just help them figure that out. But, there is some thought to put forth, as opposed to going online and just ordering more product from a distributor and marking it up!


If you feel the disadvantages are something you can pretty easily overcome, but still need a little help getting started... then we would be happy to help! We have been doing it for a long time and we are ready to make it easy for you. See the natural products we manufacture and the types of packaging we make for you here: https://www.cassco-bio.com/


If you do have hesitations, just make sure they are the natural ones we all feel with something new. But, don't pause on something that can make a bright future for you, because you are hung up on a perceived negative, as opposed to a real one. Read below to make sure!


The reality of private labeling vs. the misconceptions:


I have seen personally, that most of our customers are willing to overlook the disadvantages to private labeling, because the advantages far outweigh the costs. However, I've also seen (over a couple decades) that many don't get started, because they think the "obstacles" that are looming over them, are just too high and they would rather not stress themselves with a new project. It's new to them, so it feels much more difficult than it is. The trick to getting started, is to understand the real costs (listed above) but not getting derailed by a misconception vs. the reality of it!


Here's a few misconceptions many have, in regards to private labeling their own line of products:


  1. It's way too complicated. It's not too complicated. But, luckily, it just seems to be! So, what do I mean by that? Think about it... if you haven't started your own brand yet, but your competitor has... what are the first thoughts you tend to have towards that competitor? Would you think they just took a large step backwards in their businesses? Of course not! You would be more inclined to think "wow, they are really smart"! Or maybe you would just think they are more bold, creative, connected in the industry, etc. Well, that's what we tend to think when someone has their own brand of products! That is also what your customers will think of you! That you are smarter, you are more connected in the industry, you are more knowledgeable of the products you sell, etc. It will build trust with them! So, you actually WANT it to appear more complex and complicated than it is!

  2. Why would someone want to buy my products, when they are familiar with the national brands...since they always advertise? Well... this one is easy. They want to buy from you because... it's you! They want to buy from someone they know and trust. Or, from a similar type of person as them. The look you choose and the way you sell your products in the market will connect with people that are similar to you! Why do we know this? Because we've been private labeling for a long time and customers of ours are always surprised with how receptive their customers are towards buying their products over national brands.

  3. What if I never sell my products? Of course that is always a risk. It's just not the reality that we have seen play out over the years! While they may not be selling like hotcakes out of the gate (although many do), sales do get made. There's something about your own line that gets you excited about it. It just happens! Sales are made and more importantly, the reorders start happening too! You don't lose business when a customer finds a similar product somewhere else... for less. In addition, your products are sitting in front of your customers, with all of your contact information on it! It's a great reminder for them to go back to you for more. I remember one customer initially ordered 6 different products to start. She told me 1 year later that a few products were selling incredibly well and she was really excited about it. Another few sold decently. Two were stinkers. As time went on, she quadrupled her sales in the good movers and kept selling the decent ones. The funny thing is though, after two years, she still reordered the stinkers! Eventually, even the stinkers sold out and she needed more! So, the reality is that you will sell them. You just don't always know which products will sell best. That's why it's so important to start off your brand with multiple products being sold and not just one or two.


Our company has been set up for over 25 years now with one thing in mind... helping others start and grow their businesses! So, please contact us to talk about your ideas and we will be here for you! See the products we manufacture and the types of packaging we can make for you here: https://www.cassco-bio.com/


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