Why Private Label is Better for My Store

Not sure whether private label products are right for your company? Here are the three key benefits to consider:

Maximize Your Margin

When you carry another company’s products in your store, figuring out pricing is always a bit tricky. Obviously, you need to charge your customers a little bit more than the other company charges you; otherwise, your sales will end up costing you money. However, if you make the margin too high, your customers won’t be happy. Some may look for better prices elsewhere, while others may try to cut out the middleman entirely and buy directly from the other company!

When you have your own private label, however, there’s no “other company” to deal with. It’s just you and your manufacturing partners. And because you don’t have to pay a third party company in this scenario, you can set prices as you see fit. In the vast majority of cases, this actually leads to a higher profit margin overall.

Cut Off the Competition

These days, small businesses have to compete with both online giants (e.g., Chewy.com, Amazon.com) and big-box stores if they’re going to survive and thrive. But doing so can be tricky for two reasons: major chains have the shelf space to offer a wide variety of products, and they can afford to sell items at a relatively low price. Factor in the convenience of having several storefronts in one geographic area, and independent companies often find themselves facing a decidedly uphill battle.

The solution, then, is to offer something that your competitors can’t. They may carry Brand A, Brand B, and Brand C, but if you’re the only one who has Brand X, folks who love Brand X will stick with your store in order to get it.

Build Your Brand Identity

What characteristics do you value in the products you sell? What kind of “image” do you want your business to maintain in the public eye? What makes your company different from every other retailer in the industry?

Private label products can be a vehicle for expressing your answers to these questions. Having your own unique line of products—be it food, accessories, toys, or something else entirely—is not just about putting your brand name on a bag or piece of packaging. Instead, it’s about conveying the ideas (and iconography) that you’d like potential buyers to associate with your name. And when businesses have a strong identity, it breeds customer loyalty; people can essentially look at a company’s mission statement or sales catalog and say, “Yes, I agree—these particular qualities are important.”


Although “store brand” is still occasionally used as a term of derision, more and more consumers are starting to appreciate the value of private label products. Whether it’s due to their price point, exclusivity, or small-business imagery, private label items represent an incredible opportunity to expand your business—and stay one step ahead of the competition!