4 Things You Need to Consider With Private Labeling
There is a major trend that is becoming more and more popular between wholesalers and buyers today. Many wholesalers or distributors are now offering their very own private label products. There are a number of reasons and advantages to using private labeling, which we’ll discuss later—but first, what is private labeling?
Why Private Labelling?
Private labeling is when a retailer or supplier gets goods that are made by a wholesale manufacturer and sells it under their own label or brand. This allows you the option to customize a product’s packaging under your own trademark. With private labelling, it’s just the manufacturer (us) and the brand owners (you) who will sell directly to customers.
Who We Are
Our family-owned company, Miami Beef, was established since 1972. We’re an industry leader that provides quality, frozen and fresh meat products to retail industries throughout the United States, the Caribbean, and Central and South America.
So if you’re looking for a food wholesaler, specifically a wholesale beef private label company, we are here to tell you a few things you should consider before investing.
1. Product Liability
You own the product, and as a seller of that product, you may liable for injuries, damages, and losses caused by a defective product. Investing in a private label will mean taking a greater amount of responsibility for your product and its’ handling during the manufacturing process.
This means investing in a supplier who produces defect-free products that also meets USDA requirements. Quality control is very important when building brand value. Fortunately, when buying products from our company you have nothing to worry about.
2. Watch Your Pricing
With a private label, you have control over your pricing. Which is great but there is a downside. Everyone needs to make money, and as a private labeler, and not the manufacturer, you are adding one more company / person to the supply chain that needs a piece of the pie. So be sure you can run your new product line with smaller margins, else you may price yourself right off the shelf.
3. Insurance
Always obtain the correct product liability insurance to cover the products you would like to sell. Play it safe when it comes to coverage that can potentially save your business. There are many companies that handle product recall insurance ranging anywhere from $25,000 up to $100,000,000.
4. Product Recall Responsibility
It is the job of both the wholesalers and sellers to issue a public notice when a defected product is found. Remember you are taking ownership over this product, so be sure you can stand behind it!
Thinking A Private Label Is Right for You?
If you’ve read our tips above and believe this is something you’d be interested in, don’t hesitate to contact us today! Our staff is here to answer all questions and concerns for those looking for wholesale beef companies that can private label.