If you’re looking for a way to boost business in the new year, you might consider selling private label products. It’s a big decision for a business owner, but it can lead to higher profits, stronger brand building, increased trust among clients and more.
But before you do, here’s what you need to know:
It will increase your profit
Adding private label products into your business plan is a quick, simple way to increase your business’ overall profit. As a retailer, you can make margins that are 25-30% higher selling your own brand, rather than trying to sell someone else’s brand. Not only that, you control your inventory to keep your costs low. You can decide how to much purchase, how to set your price and how you want to brand the products.
It’s not as expensive as you think
It’s become much easier for a business owner to decide how many units they need before they even place their order. There’s no need to worry about purchasing too much stock when you can personalize your order to your business’ needs. This means as your business scales and as customers are purchasing specific products, you can also start purchasing more, rather than having to buy in bundles.
After you decide how much you want to order, you have complete freedom in deciding what your retail value would be based on how much profit you intend to bring in to your business — which also means you can create your own specials and sales at your discretion.
It’s a huge boost to branding
Branding is crucial to running a successful business and, truthfully, it doesn’t have to be an expensive project. Creating custom package labeling for your own products helps to establish yourself as a thriving, independent retailer that can be recognized in-store and online.
After you decide what your private label products will be, you can create a simple, appealing, and easy-to-recognize label that you can share on your website, social media pages and line your shelves with.
Ensure they’re printed on high-quality paper and with good ink so the labels never lose their appeal. If you play your cards right, customers will be posting your custom-labeled jars or spray bottles all over social media and raving about what it’s done for their skin. Tip: Don’t forget to use a memorable hashtag so you can track usage and mentions!
It increases client trust
Finally, having your own private label skin care line, makeup products, hair care retail, massage oils or other beauty products is a great way to demonstrate your deep knowledge of the beauty industry. Understanding what goes into the product, what harmful chemicals stay out of it, and who it’s best-suited for shows a deep-rooted passion for creating a product that can help people feel and look healthier and more radiant.
It can also be a tool to develop a sense of trust among clients. If they can come into your business to receive a service and leave with their own custom product program, they begin to think of you as a one-stop shop that they can keep coming back too.
This is the year you should say goodbye to retail products that only offer you a small commission and say hello to the profit-boosting world of private label skin care.