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Wholesale vs. Private Label

I was just curious if anybody had any experience with these 2? I know the difference and all that...I am mainly wondering if you charge any differently for private label than you would for straight wholesale?

My husband thinks I should charge more to put someone elses labels on my product, but not sure how to exactly go about charging for it? Flat rate of .25 per item or a flat rate dependant on the size of the order, etc?

Any thoughts?


17 Responses

With private label you will still need to include your info on that label as the manufacturer for "name of client".

You can charge per item or you can charge a flat set up fee for laying out the new label for those products. Generally the setup fee is one time only. Unless of course you make changes to the layout in the future.
Thanks Paris!

Yeah...I know, especially for the body products that I will need to make sure I am listed as manufacturer and all the ingredients are listed, etc...
It sounds very true Paris.

Just wanted to bump this up to see if there is any feedback from the evening crowd...thanks!
I don't have any experience with this, but curious to hear what others say.
We never charge extra, but it's pretty easy just to enter their info onto our labels and print.

I use the private label as a selling point so they can mark up whatever they want without competing with our retail prices (and we don't go lower than 30% off, so many companies really appreciate this)
I would charge more. Think of it this way: with wholesale, you are getting your brand spread farther and you're reaching customers you wouldn't have otherwise. With the private label, you're doing the same amount of work and not reaping the benefit of growing your brand. Rather, the other company is using your labor to grow *their* brand. You're providing a product and a service.

Only you know your business expenses and revenue goals so I don't know if anyone can truly tell you the exact rate you should charge, but in my opinion it should definitely exceed your wholesale prices.
Interesting Ferris Wheels...thanks for the input!
@Susan and Kate....thanks!

I figure it could end up to be a good long term relationship (hopefully) so I will charge just a touch more for special labels vs. current labeling...

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