Quite a number of times, you might have come across the words “private label” and “white label.” Yet, you still may not fully understand both concepts. Perhaps you do, but the distinction between them gets confusing because some people use these terms interchangeably. Whatever your case may be in understanding these words, I’m here to help clear your worries.
Before we go on to the slight differences, let’s take a quick look at what each of them actually mean.
Private Label
This is when a brand contacts a manufacturer to produce a product and gives the manufacturer exact specifications and directions for production of the product. The brand also provides it’s label and logo to be stamped onto the previously unbranded product. The brand/buyer only pays for the manufacturing to be done for them. Full ownership of the products belong to the brand and they can now retail the products as they wish.
To make things clearer, here’s an example: Let’s say as a skincare brand (Shannon Beauty Brand), you decide that you have a market for natural oils. The problem is that you do not know how to produce them on your own so you want to 'private label'. All you need to do is contact a manufacturer, a perfect example being Moe's group, and then make your specific and customized requests such as ‘coconut oil infused with neem leaves’ or ‘argon oil mixed with aloe gel’ in defined proportions or percentages.
Determine the kind of packaging you want with expert advice and considerations and determine your kind of labelling design and then give the go ahead for production. After production and payments, the goods are yours already and then you can sell your Shannon Beauty Oils to wholesalers, retailers or your direct customers and make money. Yipee! Who doesn’t love money?
White Label
This involves a brand getting already produced or generic goods in the manufacturer’s specifications and then branding it as their own to make sales and profit. It involves legally purchasing already produced goods by someone else and then putting your own branding on it after which you can now sell as you like either wholesale or retail.
To simplify it, let’s use the skincare brand example too: In this case, if Alissa Skincare Brand notices that it has a market for natural oils and it wants to white label, it just needs to go to a manufacturer that produces natural oils. Plus, it should purchase already produced and packaged oils like pure coconut oil, olive oil, etc. that are not customizable requests. Then, branding designs are chosen, after which Alissa Skincare Brand can distribute the products as its own.
Moe's group is a great example of an expert white and private label manufacturer.
Major Differences Between Private Labelling and White Labelling
Sometimes, private label and white label are erroneously used interchangeably and although it is understandable because the differences are slight, it is still important to use the correct term where appropriate.
Let’s take a look at what makes them different.
❏ Product Design
In private labelling, you are basically designing your own unique product and giving someone else the manufacturing duty while in white labelling, you are manufacturing someone else’s product legally using its known manufacturer.
❏ Product Customization
In private labelling, you can customize the product to your specification by giving specific production instructions to the manufacturer but in white labelling, you cannot tweak the specifications of the already designed product.
Private label products tend to be custom with your own brand label after manufacture but white label products are generic products with your own label attached.
❏ Product Type
Although it isn’t fixed and both products and services can exist under both kinds of labelling, private labels are mainly used when dealing with physical products while white labels are used more when talking about software.
This is because customization of software is complex so its much easier to use what was already created and just brand it in your name legally (white label).
❏ Production Costs
Private labelling costs are low since you’re paying for bulk production but are still higher than costs of white label manufacturing because it doesn’t include as much tweaking and custom specs.
❏ Product Prices
Private label products tend to be priced and retailed more expensively than white Label products.
So basically, both have to do with external product manufacturing and branding which relieves you of the strain of manufacturing by yourself especially if you do not know what you’re doing in the manufacturing space yet. Also, both save you the costs of machines and the likes while leaving your manufacturing, branding and labelling in the hands of experts like Moe's group. to maximize your profit.
It's easier for start-ups with no experience or new ideas to just white label products and get right into the sales and making money part because production is easier and takes less time. But if you have your unique product designs, want exclusive brand products and you have no way to personally manufacture, then private labelling is for you. All you need to do after manufacturing is nailing the perfect marketing strategy to boost your brand and help you make sales.
The Best Part of All This Is:
Moe's group can do all of this expertly for you, starting from the Private Label or White Label Manufacturing to your Packaging and Branding, and then to getting the perfect Marketing Strategies, executing them and making Sales Conversions for you. We’re the best you’ll find around and your product success is our number one priority.
So, if you're interested in:
● Manufacturing a CBD/Cosmetic/Others
● Product/Brand Packaging and Marketing
Please review our website and submit an inquiry here: Moesgroup.org
Or give us a call HERE and one of our specialists will assist you.