Make Money With A Private Label Products Business
A Window Of Opportunity Is Open!
Private label products are an “insider” business opportunity to consider because they make up a large portion of items sold.
And, almost every major grocery chain sells its own.
Disclaimer: I am an Amazon Associate; therefore, this post may contain affiliate links for me to earn a commission. RuralMoney.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.
These big companies make a lot of money doing nothing more than buying a product in bulk, putting it into smaller containers, and selling it under their own-brand name.
Now, this insider information is being revealed to you to get your share of this lucrative market.
CRACKING THE SECRET CODE OF PRIVATE LABEL PRODUCTS
You would be surprised that most products for sale come from the same supplier.
The very same companies that produce the brand name products manufacture the same cheaper private label products.
However, the product is packaged under the label of a smaller distributor, usually in a smaller number of units than the brand name company buys.
It is then distributed in a small region to retailers or directly to the public.
You can produce your own private label products.
You can buy hundreds of products direct from manufacturers and have them package the product into cans, cartons or bottles adding your own label.
You can become an instant wholesale distributor or retailer of a vast array of products all bearing your own company name for your business, fundraiser, etc.!
Many large producers can help you get started creating your own private label products, even in limited quantities.
Manufacturers often accept a contract from a large, nationwide firm to produce and package a set amount of a product.
After finishing the job, there are usually large amounts remaining, not enough to sell to a major distributor, but too much to waste.
Some small resellers arrange to have the remainder packaged under their private label; or resell it to distributors across the country.
HOW TO GET STARTED AS A PRIVATE LABEL RESELLER
Even before you make a contract with a producer, you can begin slowly from your home producing your own product line.
Some products are very easy to prepare in your home.
In smaller quantities, it is better to buy the product in bulk and repackage it yourself.
By preparing a private label product from home in limited quantities, you will not have to make a commitment for a production run.
The company that will handle your private label products will repackage the products into smaller containers and apply your own label.
Many products are easy to buy in bulk quantities and repackage.
These include essential oils, etc. However, because of strict federal guidelines concerning the sale of food, you may choose to avoid food items.
The easiest products to consider packaging under your own brand are non-food items.
MARKETING YOUR PRIVATE LABEL PRODUCT
Your entire marketing program need not consist of anything more than a five-page web site and promoting your site to potential customers online.
As you learn more about running a home based/online business, you must consider offering your product online.
CREATE A WEB SITE
You can create and design a basic five-page web site that indicate the benefits of buying the product from you.
This does not mean your site should not include some of the basic facts features on competitive sites.
Concentrate on emphasizing the convenience of ordering from your local stock.
ATTRACT REPEAT CUSTOMERS
Some products are consumed or used more quickly than others.
If you have a product of this type, combined with your selling efforts, good customer service, and a fair price, you can build an impressive customer base that consist of long-term repeat customers.
PROMOTING YOUR PRIVATE LABEL PRODUCTS
EMAIL AND AUTORESPONDER
When you actually create your web site, spend time setting up an email capture form and autoresponder to build up a list of prospective customers.
LABEL DESIGN
During your initial market research, you should become aware of how the competition actually labels their products.
This will help you in creating the design for your own private label.
You should employ the services of a commercial artist on Fiverr to help you design your product label, and save money.
Give it careful consideration and you will create an attractive design that can be reproduced and promoted on other advertising materials.
CALCULATING YOUR PROFIT POTENTIAL
When you offer your own private label products, you are building a business of your own.
You are establishing yourself as the source for that product.
This can give you some excellent long-term financial rewards.
You can start a business of this type right out of your home.
That means you will not have a high overhead problem.
It also gives you an immediate advantage over retailers who have stores in your area.
A percentage of everything they sell must be used to support the rent and other expenses.
You will not have these expenses.
Therefore, your prices can be lower than many larger businesses can offer.
Some companies that offer private label products will repackage for you.
On the other hand, your repackaging operation is something that can be done in a basement or garage.
Moreover, you can build your inventory and profit in direct relation to the demand for your product.
PRICING AND MONTHLY CASH FLOW
Your gross profit will vary from one product to the next.
However, you may be able to double your profit by buying in bulk and repackaging.
That means you will be working with a full 100% markup.
Usually, you can charge more for your product when you divide it into smaller packages, containers, etc.
When you operate a home based business with low overhead, everything you make can be put back into the business for growth.
You take only the amount of money you need for your basic compensation because taxes must be set aside and paid.
If you begin with a single product, it would be best to use your profits to add additional products related to your first offering.
3 ULTIMATE POTENTIALS FOR MAKING MONEY
1. YOUR PRIVATE LABEL BUSINESS INVESTMENT
When you establish yourself in business and build up a customer base, you have something that is worth money to others.
You have a going business ands such, it can be sold as an investment to someone else who has money, but does not care to take the time to build a business from scratch.
For example, if you are able to build your private label products business up to a steady monthly cash flow of $5,000, your business will generate 60,000 a year.
If you so choose, you can sell your business.
2. YOUR TAX ADVANTAGES AND BENEFITS
Because you are in business for yourself, you will have certain tax advantages.
These benefits change from year to year under various Internal Revenue rulings.
However, there are real advantages and potential tax savings.
Meanwhile, you must keep accurate records of all your expenses.
Almost all of them will be legitimate business expenses that are tax deductible.
3. YOUR BRANDING SHOWS YOU ARE MONEY
Once you have established yourself in the private label products business, you should consider doing whatever it takes to brand you, your company, and your product online.
Your branding mean your private label products are valuable, important, and something to pay attention to.
Also, a good promotional plan calls for conducting your own publicity, which is why you must have a professional web site.
You can build a profitable business of your own with your own private label products.
There are thousands of potential products you can repackage and distribute under your own brand.
So, there is absolutely no reason why you can’t do this business and make money.
RESOURCE: LIST OF WHOLESALE PRIVATE LABEL OPPORTUNITIES
3 MARKETING OPPORTUNITIES FOR SMALL PRIVATE LABEL PRODUCTS
As I look ahead, there are three marketing outlooks that present further opportunities for small private-label products online.
PRIVATE LABEL MARKETING OPPORTUNITY ONE
The global economy is in a very tenuous situation and is subject to another economic downturn, possible collapse in the U.S. currency, inflation, and more shoppers facing unemployment and eviction because of loss of income.
As a result, shoppers will seek and purchase cheaper goods (and services) wherever they can find them.
In the real world, this means purchasing more private label products online.
Following this change in consumer shopping behavior, homepreneurs can gain a foothold to develop their own private label products across a wider range of categories.
In summary, the economic disruption caused by COVID-19 has created a large window of opportunity for homepreneurs and homesteaders looking to make and save money.
PRIVATE LABEL MARKETING OPPORTUNITY TWO
Consumers now have a choice to shop online or at a brick and mortar retailer.
They are leaving malls both big and small, and mom and pop variety stores for Amazon and wherever its links takes them.
With the use of technology, consumers are more willing to shop for deals and savings from home since “lock downs” give them no choice.
The retail giant is also following the consumer online; but major brands no longer have an advantage over shoppers.
With the decline in jobs and the economy, more shoppers are seeking ways to make and save money by buying and marketing private label products.
In other words, homepreneurs must take advantage of this huge marketing opportunity before the corporate retail giant follow them back down the bean stalk.
PRIVATE LABEL MARKETING OPPORTUNITY THREE
As more shoppers leave brick and mortar stores in droves for online purchasing, it is effectively disrupting the relationship that shoppers once had with major brands.
Since COVID-19, more shoppers were forced to do online shopping for less expensive products (private label).
Therefore, they have become accustomed to spending more time online searching for what they need and want.
Thus, online shoppers have quickly learned to research price comparisons, shop more on Amazon, Walmart, e-commerce blogs and web sites, and build larger shopping lists to prepare for future lockdowns, food shortages, threats to their well-being, etc.
To this end, shoppers will purchase more private label products, which is a huge marketing opportunity for resellers.
As the e-commerce share of these sales continues to grow, many major and main street brands will feel the effects of lost market share.
Instead of brick and mortar, consumers are using click and order.
fORBES.COM
Image Source
