Private Labeling

Private labeling happens when one company agrees through a license to allow another company to resale its products or services under their brand name. Depending on the organization’s strategic vision, selling products under a private label agreement or store brand is a smart way to increase profit margins, maintain brand image and offer value to customers. A number of national and globally recognized retailers take advantage of private store branding agreements for many of the products they sell which attests to the success of the practice. Key players in the area of store brand products are the contract store brand manufacturers. Here are just some of the advantages of using contract manufacturers for store brand products.

Higher Profits On Recognized Retail Products And Brands

Companies with well recognized brands have usually earned the respect of their customers by providing value added products that exceed consumers’ expectations. By using private store brand contract manufacturers, these companies are poised to take full advantage of their market positions to increase profits made on each sale. Contract manufacturers are equipped with facilities and resources to mass produce certain items quickly and at relatively lower costs. These savings are passed to the retail private labeling company that realizes greater profit margins on goods sold. The contract manufacturer often sells products in national and international markets which require them to adhere to high global standards for manufacturing. This helps to ensure that retailers that carry these private store brand products are giving their customers the quality they expect while protecting their reputations in the market. Partnering with a contract manufacturer is generally ideal for companies that provide widely recognized products and have established, dedicated distribution channels.

Easier Market Entry For Established Names In Retail

By using the concept of store brands, retailers can also gain entry into markets faster and at lower costs. For example, a retailer that provides complementary products that people easily recognize and like can use store brand manufacturers to introduce other products that are natural extensions of their original offerings to their customers. Since these manufacturers are equipped with the capacity to mass produce and drop ship products, retailers can target customers with the right products, in ideal quantities at the perfect time.


Store brand manufacturers free retailers and other organizations to do what they do best which is to market and resale quality products. Contact Superior Plastics for inquires on private labeling services.