Why Private Label
There are many reasons your company may decide that it is best to private label your own products, as opposed to selling products branded by another company.
One reason is that you now have the “power of the brand” working for you. When somebody is buying a product that you have branded, they are much less likely to switch to purchasing from a competitor.
The consumer now likes your product, they like your brand. Unless the competition is selling your brand (which can often happen as you expand your sales and begin wholesaling to other vendors), the consumer will continue to purchase from you. And, when consumers do start purchasing YOUR brand from another retailer, that is great news, because you now have expanded distribution channels.
Another popular reason for private labeling is control. You now decide what goes in to your product. You decide what goes on the label. You decide what claims should be made. You can even decide to expand your very own product line, if you choose to.