White Label Goat Milk Soap / Private Label
This coming September, we will be attending the White Label Expo in Las Vegas, Nevada. So, what is White Label?
When we sell skincare products directly to consumers, that is considered a retail sale. When we sell directly to businesses and they market our products under our name and promote our brand, that is considered a wholesale sale. We give the business a discount so that they can make money on our products in exchange for carrying them in our store. This helps us expose our products to a wider audience and generate additional sales.
The other option is a sales funnel called White Label. It is also sometimes called “Private Label”. It is called “private label” as the assumption is made that the agreement between the two companies will remain private and the true manufacturer will not disclose who they make a product for. Sometimes, if an ingredient change is requested, the recipe becomes part of the private model as well.
The name “White Label” owes its origin to the music and record industry. Promotional copies of records were sent out to DJ’s to encourage them to play the record on their station in an effort to build interest and hype. This would help the manufacturer gauge potential sales and estimate how many records to produce. These records would arrive in plain white sleeves, usually before the label design and artwork had even been completed. Why make that investment if the record is a dud?
A company that requests “white label” is wanting to have their company name and branding on the product so that it looks like it came directly from them. This is extremely common. Pay attention the next time you are in Kroger, Walgreens or even Walmart. The “store” brand is a white label brand. Those companies cannot possibly make every product they carry under their name, but it still creates enormous brand loyalty and sales. So, the company that actually produces the products enjoys additional sales as well.
Before a company jumps into asking for white labeling, it must research on the industry to make sure that the demand is there. As in our case, natural soap and holistic skincare, the demand is worldwide, so businesses are in search of established producers who can meet their quotas.
Honey Sweetie Acres has grown rapidly and our entry into this market of “white label” has happened gradually. Our reputation has brought increased white label goat milk soap interest, and this is why we will showcase our brand in Las Vegas later this year. This success is due to you, our customer and once again, you have our thanks!
