"White Label" and "Private Label" are often used interchangeably. However, there is a distinction that most people are unaware of. Some would argue that "Private Label" refers to products while "White Label" refers to services. However, the claim that one phrase has anything to do with goods while the other does not is wrong.
So, what exactly is the difference between white labels and private labels?
The distinction is in who determines what the product or service will include. The customer determines the design, components, ingredients, or products in a private label partnership. While the supplier or manufacturer may provide a variety of adjustments to meet individual demands, they determine the design, components, ingredients, or offers in a white label partnership.
It's not as complicated as it sounds. Just keep reading, and everything will become evident.
Private Label Definition: What Does Private Label Mean?
A private label product will be manufactured by a third-party manufacturer and sold under your brand name. As the buyer, you specify everything about the product. What goes in it, how it's packaged, what the label looks like. Then, your company pays to have it produced and delivered to your warehouse or store based on a contract and specifications.
Private Label review:
● We R&D a client's existing formulation or create a new formulation based on specifications the client gives to us.
● We tailor the product to the client's and their brand needs, and they also have exclusivity on the formulation they choose.
● Product complexity is high; that being said, innovative tech (i.e., water-soluble), funky ingredients (i.e., adaptogens), and specific packaging formats are possible.
Benefits for the client:
● The product is superior to any white label product offering.
● A one-on-one relationship with the manufacturer.
● Heavily customisable, more control.
● Easier to introduce new products to an existing line.
Disadvantages for the client:
● Lower MOQs are possible, but that comes at a higher cost.
● Depending on project complexity, there may be a development fee.
● In addition, time to market is longer than a white label option.
White Label Definition: What Does White Label Mean?
White label products are manufactured by a contract or third-party manufacturer and sold under your brand name. As the buyer, you ONLY specify what the label looks like
White Label means:
● We manufacture (or third-party manufacture) a product, and it is sold under the client's brand.
● The client can ONLY specify what the label looks like.
● We specify what goes inside the package, how it's formulated, and decide on the packaging.
Benefits for the client:
● It is cheaper than private label/higher profit margin due to spending less time and money on product development.
● It allows brands to get to the market the fastest without an R&D budget, product planning, and marketing.
Disadvantages for the client:
● Lose exclusivity as they get the same product that we also sell to multiple customers.
● Lower MOQs are exemplary and are relatively cheaper than Private Label MOQs.
● Minimal customisations are allowed, packaging and appearance are usually generic.
White Label: Positives vs. Negatives
White-label choices provide the lowest MOQ and established formulae. Our formulae and techniques have been thoroughly tested and standardised, allowing us to provide our customers with a trustworthy and diverse choice of white-label goods.
However, white-label items may be rather restrictive in terms of potential. Those solutions are generally fairly similar to the present market and do not stand out significantly from the competition. Again, we must consider the question: What is the objective of the ordered products? The bespoke formulation is required if the solution is complicated and requires a custom formula.
This choice is perfect for any company that wants to stand out. A great formulation team may make your greatest desires come true. We can help you enjoy an unusual CBD coffee syrup, or a CBD-infused Kombucha drink. We have an amazing water soluble solutions for both cannabinoids and terpenes. Our scientists will analyse the possibilities after we hear your vision. We value honesty with our clients. Sometimes the client's ideas need to be bent to create the greatest market product.
Discuss and Formulate
In the heart of Europe's most innovative cannabis industry, we combine decades of research-based product excellence from North America with a custom-built facility.
Our typical 'Drivers and Motivations' questionnaire data helps us understand your worldview and how we might help you communicate it.
What will be your packaging?
Whether you choose one of our pre-made packages or create your own, the choice is yours. Trade-offs may be made between packaging costs and lead times.
We design your packaging based on your requirements and our drives and motives discussion.
Let us help you bring your product to market. What do you need? Branding advice, SEO help? Can we connect you with PR or trade press? Ask us how we can choose from so many resources.
Depending on the product, we perform:
● Initial meeting – Client explains required ingredients/packaging/CBD content.
● Incorporated throughout the process are key milestones and responsibilities. The client accepts PD format.
● Formulation sampled; packaging discussed.
● Agreed sample rounds, then client approval.
● A production and deposit to secure the facility agreed upon.
● Formulation: evaluation Products are then tested for stability and compatibility.
In a failed test, we reformulate/tweak the formulation and retest.
● Some products need registration/paper
● Packaging arrives, and manufacturing begins. Affidavit of delivery
● Client receives the final product.
Many individuals consider starting an online business having high costs, lengthy hours, and a large amount of paperwork.
Instead of guessing the profitable products, you may use tried-and-true methods to achieve speedier results. White labelling and private labelling both allow additional marketing and branding freedom while keeping expenses low. We are posting some case studies and will continue to post more with our clients permission.
True North Labs is Switzerland's premier Cannabinoid source for private label full spectrum hemp extract product solutions. True North Labs is an innovative leader and developer of precise cannabinoid formulations that provide manufacturers with consistent, versatile hemp-based ingredients for use in a wide variety of products meeting specific demands of product creators inside and outside the hemp industry.
Let us help you stand out amongst the crowd. Please get in touch with our team for questions or arrange how we can work together.