Both white label and private label entail an arrangement where wholesalers and retailers of a product engage the services of a manufacturer, but there are certain differences when you consider the nitty-gritty of both arrangements.
A private label is a product that is manufactured by one company and is then sold under the brand name of another company that might be selling similar products. A white label product on the other hand is a product that is manufactured by one company but is then rebranded and sold by another company without any changes being made to the product.
What is a Private Label?
A private label is a product that is manufactured by one company and then sold under the brand name of another company. The client company might be selling similar products and wants to find a reliable source for their products. Or, the client company might want to enter into a new market with a new product and needs someone to handle the manufacturing process.
In either case, the client company will enter into an agreement with the manufacturer, specifying the product to be made, the quantities to be produced, and any other relevant details. The client company will also provide the manufacturer with their brand name and logo, which will be used on the product.
What is a White Label?
A white-label product is one that is manufactured by one company but is then rebranded and sold by another company. The original manufacturer still produces the product, but the branding and packaging are done by the client company.
The client company might be selling similar products and wants to find a reliable source for their products. Or, the client company might want to enter into a new market with a new product and needs someone to handle the manufacturing process.
In either case, the client company will enter into an agreement with the manufacturer, specifying the product to be made, the quantities to be produced, and any other relevant details. The client company will also provide the manufacturer with their brand name and logo, which will be used on the product.
What’s the Difference Between Private Label and White Label?
There are several differences between private label and white label products:
- Private label products are made specifically for a client company, while white label products are made by one company and then sold to another company to be rebranded.
- Private label products can be customized to the client company’s specifications, while white label products are usually not customized.
- Private label products are usually more expensive than white label products.
- Private label products are made by one company and then sold under the brand name of another company, while white label products are made by one company and then rebranded and sold by another company.
- Private label products might be selling in the same market as white label products, but they are not identical products.
How to Choose Between Private Label and White Label?
There are several factors to consider when choosing between private label and white label products:
1. Cost:
Private label products are usually more expensive than white label products. If cost is a major concern, then a white label might be the better option.
2. Customization:
Private label products can be customized to the client company’s specifications, while white label products are not usually customized. If customization is important, then a private label is the better option.
3. Quality:
Private label products are made specifically for a client company, while white label products are made by one company and then sold to another company to be rebranded. If quality is a major concern, then a private label is the better option.
4. Branding:
Private label products are made by one company and then sold under the brand name of another company, while white label products are made by one company and then rebranded and sold by another company. If branding is important, then a white label is the better option.
5. Market:
Private label products might be selling in the same market as white label products, but they are not identical products. If a specific market is targeted, then private label or white label can be chosen based on other factors.
Frequently Asked Questions
1. What is a private label product?
A private label product is one that is made specifically for a client company. The client company specifies the product to be made, the quantities to be produced, and any other relevant details. The client company also provides the manufacturer with their brand name and logo, which is used on the product.
2. What is a white-label product?
A white-label product is one that is made by one company and then sold to another company to be rebranded. The original company does not put its brand name on the product.
3. Which is better, private label or white label?
There is no definitive answer. It depends on the factors that are important to the company, such as cost, customization, quality, branding, and market.
4. How much does a private label product cost?
Private label products are usually more expensive than white label products. The exact cost will depend on the product being made and the quantities being produced.
5. How much does a white-label product cost?
White-label products are usually less expensive than private-label products. The exact cost will depend on the product being made and the quantities being produced.
6. Can private label products be customized?
Private label products can be customized to the client company’s specifications. This includes the design, packaging, and labeling.
7. Can white-label products be customized?
White-label products are not usually customized. The original company produces the product according to its own specifications. It is then up to the second company to decide how to brand and sell the product.
Conclusion
Private label vs white label – what’s the difference? It all comes down to the specific needs of the client company. If cost is a major concern, then a white label might be the better option. If customization is important, then a private label is the better option. And if branding is important, then a white label is the better option. Ultimately, it depends on the factors that are most important to the company.
