- 26/06/2024
- Rohit Mishra
Not all brands manufacture their own products. Some of them also outsource manufacturing to private label services companies. The benefits of private labels include low-cost manufacturing, predefined custom formulas, large production capacity, and more.
However, there are some myths surrounding private label products and services. These myths are debunked in this article to provide brands and consumers with a clear picture regarding private label manufacturers.
Myth 1 – Private Label Means Lower Quality
Private label products are generally offered at a cheaper price. However, it doesn’t mean that they are of lower quality. Many private label services offer high-quality products to brands. Their unique formulas and ability to customise ingredients and formulas help brands launch unique products in the market.
It also helps them to set their products apart from those of their competitors. So, if a brand adopts private label services, it doesn’t mean that it compromises the quality, safety, and effectiveness of the products.
Myth 2- Lack of Customization
In fact, private label services offer more customisations than any other manufacturing outsourcing manufacturers. They offer custom formulas and also allow the brands to revise the formulas as per their target audience and industry trends.
This allows brands to include ingredients that suit their marketing and branding requirements. Also, when brands collaborate with private label services, they get customised packaging solutions. So, they can get custom designs, logos, and labels for their products, which sets them apart from their competition.
Myth 3 – Higher Costs
Some people think that private label services are costly. However, private label manufacturers offer their products at wholesale rates as they manufacture them on a large scale. This allows the brands to get a high-profit margin through bulk sales. The actual costs associated with private label services depend on the number of services you avail from them.
However, generalising them as costly is not at all justified. B2B brands rely on private label services that balance quality and price to perfection. Also, as it is a time-saving prospect for brands, they can focus on their branding and marketing strategies more after outsourcing their production.
Myth 4 – Limited Expertise
It is actually a myth that private label companies have limited knowledge about the market and products. In fact, they have their own research and development team, which helps them to understand the recent market trends and product development technologies.
A private label manufacturer also has years of manufacturing experience. So, they have in-depth knowledge about the manufacturing process and customer expectations. As a result, brands can get the benefits of private labels and launch high-quality and appealing products in the market.
Myth 5 – Difficult To Scale
Some brands think that it is difficult to scale up once they collaborate with a private label services company. However, there is no truth to this claim as private label manufacturers have a wide range of products to offer. So, they can always help brands add new products to their lineup.
Also, their bulk manufacturing ability allows brands to scale up their production as the demands of the customers increase. Some international brands have managed to enter local markets using this scaling capacity of private label products companies.
Conclusion
We hope that you have now understood what the pros and cons of private label products are. The reason why private labels are cheaper must also be clear by now. As a brand owner, you can definitely rely on the quality of private label products.
However, you must only collaborate with trusted private label manufacturers like Bo International. It is a leading private label company that offers private label personal care products at discounted rates. It also offers customised formulas and packaging solutions. Contact their sales team today to know more about their private label services and products!
