What’s the Difference Between Private Label & White Label?
Many companies market themselves as private label partners, and they may be. But for the most part companies promoting themselves as private label partners are white labelers. White labeling being their real business. Don’t be embarrassed if you don’t know the difference between private label vs white label, we break it all down for you here.
Control is the Key
The main difference between white label and private label, which is true across products and industries, is the contrast between who controls the product being sold. Can you change the recipe? Or choose the supplier of a part?
If someone else controls what’s being delivered then it is White Label. True Private Label is when the owner of the final product can control the product from inception to delivery.
Why Does Private Label vs White Label Matter?
Most companies or people seeking private label want to control their product. They want this (the inputs and the costs associated with those) to achieve a higher margin than can be achieved buying and selling someone else’s product. Cutting out the middleman and owning all the profit margin is the goal.
White label companies may seek help to get a product to market faster. However, you lose control of key cost levers, introducing the middleman and his profit in the process.
Identity and Brand
White Label solutions are available to you because they are available to the market in general. They can solve a problem are fill a hole in your product set, but they will not be unique or brand defining, even if they have your label on them. These are solutions to a problem, and can be highly useful.
Private Label vs White Label
Depending on the product, market, available solutions, and costs associated with, it may be preferable to pursue a White Label solution. However, we may find that even when White Label solutions are available they don’t fulfill your need after all and Private Label is the only true solution. We can help you be successful what whatever private label need you have!