Let’s picture it: You’ve done the hard work and created your own brand. You invested in a logo, a color scheme, and a marketing strategy to make it uniquely yours. But now you’re ready to grow and want to expand beyond your local market. This is great! But how do you keep all of that work from going out the window?
The answer: white labeling.
White labeling eliminates confusion for customers who may not know which product they are getting or where it comes from. In addition, it saves time and money on marketing materials because there is no need for new ones when expanding into different markets.
What Is White Labeling?
Now that you’ve got your awesome business idea up and running, it’s time to grow; you don’t want your branding ideas getting lost in translation when you branch out into other markets, preventing you from gaining a larger customer base and making it much more difficult to compete with the big corporations.
The solution? White labeling.
In case you aren’t familiar with the term, white labeling is when a company (or product) takes an item already manufactured by another company and puts its own logo on it.
It’s what many businesses do when they branch out into other markets or sell products through distributors; since each market has its own unique needs and wants, there’s no real need for new branding every time a business enters a new area of operation.
Imagine if Coca-Cola changed their packaging and logo every time they wanted to sell something outside of North America – that’d be crazy! The same goes for Apple; we expect to see those familiar silver and white stripes everywhere we go, even if we’re buying a computer produced by HP.
White labeling eliminates confusion for customers over product origins and makes it much easier to expand a business quickly with minimal costs.
Is White Labeling Ethical?
There is some debate as to whether white labeling is ethical or not– some people say that white labeling robs customers of choice because they have no idea what company made their product… but these same people would complain about mystery meat at school lunches!
In my case, as long as you stick with reputable companies that stand behind their products 100%, this shouldn’t be an issue– so don’t try selling knockoff electronics from China. More importantly, for those of you who want to sell a product through distributors or white label your business in order to reach more people, it’s the perfect solution.
How To Start White Labeling?
Before we go any further– I have to say that there’s no hard and fast rule on how to actually start white labeling. It varies from market to market, so your only option is finding out what works by trying out different things.
For example, let’s say you’re selling a product online– the first question is whether there are distributors looking for new products or not. Then, are you planning on selling locally or nationally? If it’s locally, then chances are you won’t need an additional distributor as most local stores will work with you directly; if it’s nationally, then there are distributors who specialize in getting new big-box retailers.
If you’re selling online through your e-commerce site (or via a 3rd party) and want to add other sales channels later down the road, white labeling is a great way to go because no additional investment is required on your part-– you only have to place a sticker on each product before sending them off.
Another option is to use a company that helps companies white label their businesses within an area of operation or across multiple markets.
Wanting to sell clothes online? You can have one website for North America and another for Europe! But this means you’ll have less control over how customers perceive your products since they won’t have access to the same information, and depending on how much you’re selling each month, this could end up being a real pain.
If the company that helps you white label is worth its salt, it’ll ensure that customer service remains in good standing to avoid any issues with customers getting different information from different places– but since your website is only one half of the equation, it’s always best to double-check before moving forward with anything!
The Features Of White Labels
Now that we have an idea of what white labeling is… why do it? The answer to that question is two-fold.
You either do it for your own convenience in terms of scaling a business quickly and easily– avoiding potential headaches in managing multiple brands–, or you do it because you don’t want to be seen as the individual responsible for building that business– let me explain with examples.
It’s not uncommon for small businesses to sell their products through home parties and department stores, but what happens if someone at the party or store copies your idea and starts selling directly to your customers?
The brand recognition you’ve built up will disappear overnight! This is exactly why some entrepreneurs choose to white label their business– to create a product and keep it completely separate from other brands without having to worry about retailers passing off another company’s work as their own (imitation sucks!).
In these cases, it’s not that the seller wants people to think they’re somebody else; it’s just that there are certain things they don’t want others to know about them. To make it even better, most distributors or retailers will never bother looking up the seller’s name anyway-– as long as the product is decent, there shouldn’t be any issues!