Arek Kazmierczak

Private labeling is the practice of producing a product from one manufacturer, and labeling it with another organization’s branding. It can be done across many industries and products, from food to cosmetics. Private labeling is becoming increasingly popular as businesses attempt to ramp-up their product offerings and provide additional value to their customers. This process is common for retail stores and boutique owners because it allows them to expand without the increased costs or hassle of producing the actual products in-house.

A few of the most compelling reasons to private label products are to:

• Earn high-profit margins
• Increase and capitalize on brand loyalty
• Surpass competitor product offerings

Earn High-Profit Margins

For a business who is considering offering an additional product, there is typically a large start-up cost to produce something entirely new. A specialty food store, for example, wants to offer a branded drink mix to their customers. If this food store was to produce the drink mix themselves, they would have to invest in ingredients, manufacturing equipment, bottling equipment, labeling equipment, and have laborers to run the process. Now, this simple drink mix idea has turned into quite a feat.

Conversely, this food store could contact a private labeler who has the necessary means to create the drink mix and put their label on it. Instead of making the massive investment to produce a new product that will cost them $13 to produce and will sell for $15, the small food store can earn much higher profit margins using a private labeler where the bottle will cost $9 to obtain and they can still sell it for $15.

Capitalize on Brand Loyalty

For a business whose goal is to become the leader in providing a certain type of product, private labeling can offer increased value to its existing customers by extending its product offerings for the same audience. Take a specialty yoga store, for example. The store provides beautiful yoga mats with intricate designs and has a strong following of yogis that love their mats. To capitalize on this brand loyalty, the yoga store can choose to white label branded water bottles to sell in conjunction with their yoga mats. To make this happen, the yoga store would only need to contact a private labeler of water bottles, provide their logo design, and voila! Now the yoga mat store will be able to gain additional revenue for selling their new water bottles at the same luxury price that their customers are expecting to pay when shopping at the store.

Buyers return to brands they love, and when those brands provide additional products, that same passion from the customer is carried to the new offering.

Surpass Competitor Product Offerings

Competition is a common challenge for retail businesses since stores that offer similar products are close in proximity and pricing has become increasingly transparent. How to differentiate a company’s products from its competitors is at the forefront of a business leader’s minds in order to keep market share and increase revenue. Expanding or diversifying a business’s product portfolio can help ease the issue. However, investing in a new product line and R&D can be daunting when a quick, cost-effective solution is needed. Private labeling can be a solution.

For example, consider two golf club stores: Dailey Golf and Golf Pro. Both stores are close in proximity, offer custom clubs that are well-liked by their customers, and sell at a similar price point. To take a competitive lead, Dailey Golf just started private labeling golf balls and scorecards to sell with their clubs. The average customer who didn’t care before which store they shopped at, will now likely go to Dailey Golf instead of Golf Pro because of the additional product offerings.

Olive oil is a food that has been enjoyed for many centuries. Commonly referred to as “the healthiest fat on Earth,” olive oil has many unique properties that encourage good health.

Healthy Fat

Although fats in one’s diet is typically a controversial topic, the scientific and nutritionist community agree that olive oil is a healthy fat.

Olive oil has no carbohydrates and is 100% fat, making it perfect for those following the Ketogenic (Keto) diet.

Although consuming an ingredient with 100% fat sounds like it could be a bad thing, it is important to remember that olive oil is a healthy fat and provides the body the required fat content it needs. Consuming foods with healthy fat keeps your blood sugar levels balanced throughout the day and reduces cravings for nutrient-empty foods such as soda, cookies, and chips.

Vitamin E Rich

Olive oil is rich in Vitamin E, which supports nerve conduction and has been shown to increase immunity to disease. Additionally, the high monounsaturated fat content in olive oil has been shown to increase good cholesterol (HDL) and lower bad cholesterol (LDL).

Anti-inflammatory Properties

It is a common belief that chronic inflammation is a driver of many diseases — cancer, diabetes, arthritis, heart disease, and Alzheimer’s. A surplus of research has been done on olive oil, and it was found that a naturally-occurring, non-steroidal, anti-inflammatory chemical exists within extra virgin olive oils. Coincidentally, death from cardiovascular disease is very low in the region around the Mediterranean sea, where extra virgin olive oil is a heavily consumed ingredient.

To conclude, olive oil has a myriad of health benefits, including:

• Helps reduce inflammation
• Improves LDL cholesterol
• Reduces HDL cholesterol
• Lowers blood pressure

In short, olive oil is really good for you.

When selecting olive oil, be sure to buy from a reputable seller to ensure your product hasn’t been diluted in order to get the best health benefits. To read more about olive oil authenticity and quality, check out these articles:

Olive Oil Can be a Scam, Make Sure You’re Getting the Good Stuff by Dave Gersghorn

Seven Ways to Tell if Your Olive Oil is Fake by Janet Rause Fuller