If people are positive about the idea, you can ask them if they feel that the product would fit well into their company`s product line. If they think that`s the case, you can ask them who you should talk to about a private label deal. One of the big reasons companies adopt private label products is to fill their product lines. Retailers do not like to buy from many different suppliers, so sometimes when a supplier has a more complete product line, they will drop their current supplier in favour of the new one. So if your product fills a gap in a company`s product line, it will help them find more retailers, not only with your product, but with all their products, which will increase sales in all areas. Private label agreements are a kind of manufacturing agreement that is used for food production. With respect to private labeling, a manufacturer undertakes to produce its own recipe and formula marketed under the label of a third party. How do you want a large company to sell your product under its own label? It couldn`t be as hard as you think. While licensing seems to be a good option for inventors and entrepreneurs, the landing is that licensing contracts remain difficult to obtain for many, but private label agreements can be almost as beneficial and are much easier to develop. Your private label buyer will probably not invest money in marketing. Potential buyers should see your product and immediately recognize its usefulness.
If you have a consumer product, take the time to pack your product so that it sells itself. Packaging and product design is extremely important if your private labeling agreement is with a retailer or distributor that sells to retailers. Products that complement the company`s successful products have the best chance of being sold under a private labeling agreement. This means that the attractiveness of the product should have a similar appeal on existing products that the company already sells. Finally, only medium to high-priced items do well under private labelling, because the benefits must be distributed among a larger number of people, and if the product is too cheap, then there are not many benefits to go. The private label was not part of Michael Levin`s first game plan. The idea of his innovation, a clear plastic overlay for broken nails, glued with a nail glue, first struck Levin in 1989, when his then girlfriend tore off a nail. At the time, she couldn`t find a product to repair the nail – and she complained to Ljewin that cracked nails were a common problem in all women. Levin, who had a chance, decided to hire a market research company to evaluate the market.