The Top 5 Common Myths About Private Label Foods, Debunked

Are you thinking about working with a private label service but have some doubts? We’re here to help. These are the top 5 myths about private labeling, debunked.

Maybe you’re just starting a business. Or you’ve owned one for a while but are looking to expand the line of products you offer. Either way, hiring someone who offers private label services may be a helpful resource but also, costly. Not necessarily. Companies who offer these services (such as Vera Pasta) produce their products on a large scale, therefore giving them the ability to offer their products at a wholesale rate. Through selling in bulk quantities, the company is able to make a higher gross profit and you will (hopefully) will be making higher gross profits
from the new products you are offering. So it seems like a win-win for everyone’s bank accounts.

Okay so since private label products and services are not as costly as people thought, does lower pricing mean lower quality? That brings us to our next myth. Manufacturers want to sell quality products to brands purchasing from them. And brands want to sell their new high quality products to their customers. There’s no cutting corners just because it’s a private label. To debunk this myth, no, lower costs definitely do not affect the quality. Now we know that private label services offer high quality products and affordable prices. But as a business person utilizing these services, do you have a say in what goes into the product you are about to sell? Myth number 3 is about lack of customization. Again, this is not the case. Of course, how and what you can customize will vary across services and depend on what kind of product is being produced. But overall, private label manufacturers will work alongside you to revise the products to best fit target audiences. Another time that customization comes into play is packaging. Many services give you the option to create custom logos, labels and packaging to help your brand stand out. This is especially helpful for those starting their own brand/business.

Myth number 4 says that private label companies lack expertise in the products they are interested in selling. It’s actually quite the opposite. Brands often have an individual or team that researches the products and their market trends. Through plenty of experience, manufacturers have in-depth knowledge of processes, technologies, markets and client expectations related to the product. Knowledge and experience from both sides of the partnership creates a recipe for successful business operations.

Lastly, some think that once you secure a private label service to work with, it is hard to scale up. The more your product is in demand, the more you will need to purchase, right? Since they produce in bulk, manufacturers can easily increase their production quantities that meet your demands. Manufacturers also offer a wide range of products. They are always willing to help add or recommend products that could enhance your brand.

So what do you say? Is using a private label service right for you?