OK, you may (or may not) have already heard of the term ‘private label’ and if you have then great, although for clarity here’s my own definition..
My definition of the term ‘Private Label’..
“to assign your own brand name, trademark (or label) to a product or service that you’re legally able to claim ‘rights’ to –for your own purpose”
Place your own brand name or ‘label’ and name on the product and that product or service then represents your own brand, it really is that simple!
For example, many manufacturers make products in their factories and they’ll often have standard in-house products, which they willingly want to produce for anyone who wants to buy them. Manufacturers need to keep their product lines moving and they need business from entrepreneurs just like you, to keep their machines running and to keep paying their staff wages.
Many large retail companies take advantage of ‘own brand product labeling’, for their own brands in order to save on the cost of having to manufacture a large portfolio of products themselves.
I’m sure you’ve seen in-store brands at places like Tesco’s (Tesco’s own brand), Wal-mart (Wal-mart’s own brand) and all the other ‘hyper market’ giants.
As big and as powerful as those companies are, imagine how impractical and costly it would be for those companies to have to build factories to make every single product they offer under their own brands –I’m sure you’ll agree, it wouldn’t be cost effective at all!
These big companies know they can easily approach manufacturers to place orders for the standard ‘in house’ factory products and claim them as their own simply by applying a brand name and their own label to the product.
You Can Do Exactly the Same
The process of private labeling is simple so don’t be alarmed –and its not just limited to the big players. Literally, anyone can private label a product on any budget, on any scale to build a business from scratch..
