Product packaging has become a critical element of the marketing strategies for businesses today. Whether you are selling medicines, cosmetics, groceries, or any other product, this is one aspect that you cannot afford to ignore at any cost. The reason is that buyers give as much attention to the aesthetics of the package as they give to the quality of the product inside. It comes as no surprise that retailers are more than keen to spend millions on product packaging. However, a large segment of sellers is outsourcing the products along with packaging through contract manufacturers and selling them with their own labels on them.
Known as private labeling, this is a practice that has gained acceptance in the business landscape today. It enables businesses to save time and money while they establish themselves as pioneers with a certain product idea. Over the years, this practice has emerged as a smart choice for businesses as it enables them to sell products designed and managed by others under their own brand name. But success depends on doing it right and there are certain mistakes that you need to avoid while selling such products under your brand name. Let us list them for you.
1. Not ensuring that the product has a high demand
Unless you start by investigating whether there is a good buyer base for your private label, you may end up losing your money. Extensive market research can make all the difference here and you should not ideate selling a product under your brand name unless it has a hefty demand in the market. Other factors to consider are to avoid products that are too complex, bulky, fragile or cheap. Similarly, jumping in the business of selling ones that need to comply with different regulatory compliance is a risky proposition.
2. Not having a competitive price
Another mistake that you should avoid while selling products with your private label is not setting a competitive selling price. Once again, research plays a key role and this time it has to cover your competitors rather than prospective buyers. You need to identify the sellers who are selling a product of similar type and quality. The next step is to study the price they are selling at and set your price accordingly while keeping optimal profit levels in mind.
3. Letting others replicate your idea
If you are selling something innovative but letting other sellers replicate your idea in one or more ways, you are probably ruining the sales prospects of your private label products. This is the reason that you should get your product idea patented in the very first place. If you do find someone guilty of infringement, take proper action against them. Another important fact that you should ensure is to set stringent agreements with your contract manufacturer to prevent the use of your product idea or design with another company.
4. Not having great reviews for your product
While the design, quality and pricing of your products do matter, word-of-mouth is equally critical. If you are ignoring the importance of positive product reviews from real customers, you will probably lose the race. Take your private label to the social channels and encourage the buyers to share their stories and positive reviews about them. Have a solid review strategy in place and leverage it across all the selling channels to ensure that the maximum number of potential buyers can access them. People tend to trust real buyers more than advertising campaigns.
5. Nor persevering if you fail at the start
Businesses selling private labels should not lose heart if they do not get great results to begin with. There are chances that you may not make booming sales in the initial stages but it is still possible if you make improvements in your products and marketing strategies gradually. Once you are able to get your footing in this landscape, you will probably be able to use it to your advantage. Using this option is a great way to sell products and grow your brand without going through the hassles of monitoring and managing the manufacturing and packaging processes.
If you are able to conquer these challenges and mistakes related to private label selling, success will come easily. Being aware is the key to avoiding them and so is having a professional manufacturing and packaging concern to handle these functions for you. Trust and transparency matter the most because you would not want your product design to be copied by a competitor. It is best to have a trusted partner for creating and managing products under your private label.