Private labelling refers to the process where the buyers have complete control of what goes inside the formulations. On the other hand white label services only allow buyers to decide what their labels look like. The terms private label and white label services are often used interchangeably in the market. However, there are many key differences between private and white labels. In this article, we will try to understand in detail what is the difference between private labels and white labels.
What Is White Label Or White Label Product?
A white label product is manufactured by a company that offers white label services. The products are manufactured for a third-party brand. The company already has the formulas and expertise to manufacture white label products in bulk. The buyer can only determine the design and names to be mentioned in the packaging.
Why Do You Choose White Label Companies?
White-lable companies manufacture white label products on a large scale. They may offer the same formulas to different brands with minor customisations. If you do not have much experience in creating and formulating products, white label services can help you with that. As the formulas are already tried and tested in the market, you don’t have to worry about anything. This reduces production risks and allows you to get the products deployed quickly. White label services are mostly preferred by beginners or other brands who do not have expertise in manufacturing the products.
What Is Private Label Or Private Label Product?
Private label services offer end-to-end solutions to their clients. They mostly work in the B2B segment and have fewer clients as compared to the white label companies. Private label services can help a brand to formulate a product from scratch. They accept formulas from the brands and use their manufacturing ability to help the brands meet their production requirements. Some private label services also have customised formulas that help newer brands to launch unique products in the market.
How Does Private Labelling Work?
The key difference between private and white labels is the way things are carried out. Private label companies can build a product as per the requirements of their clients. They also accept custom ingredients and formulas as per their requests. For example, if you want to produce aloe vera-based moisturiser but don’t know what else goes into the formula, you can contact private labelling companies. They will understand your requirements and suggest products and formulas that go with your expectations. Private label companies not only handle the production but also provide customised packaging solutions. It helps brands to decide what their product packaging and labels look like. Finally, they also have tie-ups with logistics companies to deliver the products.
Benefits Of Private Labelling
The key benefit of private labelling is that you have complete control over what goes inside your products. Moreover, you can ask the private label services to maintain the confidentiality of the formulas and not share them with the other brands. This kind of loyalty cannot be expected with white label services.
If you have unique formulas, you can share them with private label services and get the products manufactured. Some private label services also have a dedicated research team that helps brands in formulating products. They discuss the requirements and ingredients with their clients in detail and help them formulate new and unique products.
The option of using predefined formulas with nimble changes is also available. As the ingredients, fragrances, and colours can be customised, you have complete control over the quality and pricing of the products.
Private label services manufacture the products in bulk and provide them at wholesale rates. It helps you earn higher margins from their sales.
The private label services also help you with marketing and promotions. Customised marketing control and exclusive formulas help you achieve an edge over your competitors.
Key Differences Between White Label Vs Private Label
There are many key differences between white labels vs private labels. The exclusivity of the product formulas is not available with white label services. Also, the option of product customisation is either not available completely or you may be able to do only minor changes to them.
On the other hand, private label services provide you with complete freedom when it comes to choosing the key ingredients of your products. You may also change the aesthetics and fragrance profile of your products as per your marketing needs.
The costs associated with private label products might be slightly higher especially if you ask them to manufacture a completely new or unique formula that you have formulated in your lab. It is because the private label manufacturer may have to set up a new process to manufacture the product as per your requirements. It also means that you will have to increase the final consumer costs to get satisfactory profit margins after selling them.
While label companies use stock formulas and stock packaging to accelerate the speed of selling products. Private label services will provide you with products with unique features. They will also help you with your marketing and advertising efforts. If you want to do any modifications to a product line, you can get it done with help of a private label service provider.
Key Similarities Between White Label Vs Private Label
There are many key similarities between white label and private label services. For example, both of them offer third-party manufacturing services. Control over marketing strategy and packaging is also offered by both these companies. You don’t have to get a trademark to produce and sell products with either of them. The costs and prices associated with production and marketing are also similar, especially if you opt for pre-existing product formulas.
Why Can Private Label Products Be More Expensive Than White Label Products?
Private label products tend to be more expensive than white label products because white label products don’t entertain customised formulations. To manufacture private label products with unique formulas, you will have to provide a higher price as the manufacturer may have to modify their existing plants and processes to accommodate your requirements.
Deciding Which Is Right For Your Business: White Label Vs Private Label Products?
White label services are good when you do not have any formulas of your own. If you have sufficient expertise in formulating unique products, you should go for private label products. Private label services also help you customise an existing formula as per your target audience and marketing requirements. This flexibility is not available with white label services. White label services can help brands with large manufacturing needs and who do not have much to do with what’s inside the products.
At Bo International, we provide dedicated contract manufacturing and private label services. Our customised formulas help you determine the ingredients that you want in your products. We offer marketing, logo designing, and other services to our clients. Our bulk manufacturing capacity enables us to offer private label products at discounted rates. Get in touch with our sales team and redefine your product line today!