Private Labeling: Questions and Answers


Private labeling is a business practice used by big-box stores, small chains, and all sorts of other businesses in order to have a little more control over the products they sell. It allows a company to take another product and brand it with their own image, giving them a product of their own to sell without actually having to manufacture it. It can be very helpful and profitable if done right!

Affyx

So, before you begin working with a private label service such as Affyx, make sure all of your questions are answered about the topic before getting to work. To help you, here are some of the common questions asked about this subject by people just like you who are just getting started in their private label journey.

What is private label?

Private label is the act of a company buying a product and the rights to the product from the original manufacturer of the product. For example, while you might see a store that sells the traditional branded snacks (like bags of chips), they will also sell their “own” brands, which are typically purchased from other companies and then labeled with the company’s own brand.

Is private labeling legal?

Of course! Private labeling is completely legal as long as the company who originally manufactured the product and the one purchasing the rights to the product both agree on the legal terms and conditions. Many stores and brands make use of private labeling today.

Is private labeling worth it?

It can be! Private labeling allows companies to have a little more quality control over the products they sell, and they can attach their own brand to it. Since it is effectively their product, they can also charge more for it if they would like to increase their profit margins.

As you can see, private labeling can be a good way to go for many businesses who have an idea for a product they would like to make their own. If you think this could be a good move for your business, make sure you look into a great private label service in order to get everything done right.