Posted by Surprisingly, the terms “white label” and “private label” are quite often used interchangeably! These terminologies however are distinctly different from each other! Some may even try to oversimplify matters by stating that “Private Label” deals with products and “White Label” deals with services. However, this too is incorrect. In order to understand the key differences, we will need to look at products like private label supplements as well as white label formulations closely.
What then is the Basic Difference?
The primary difference lies in who actually specifies what a formulation or even a service will comprise. When it’s a private label arrangement, the buyer will be responsible for specifying everything ranging from parts, offerings, ingredients, and so on. When there is a white label arrangement, the manufacturer provides a complete range of customizations for fitting a set of specific needs. They specify parts, designs, ingredients, and offerings. The concept of the white label seems clearer when there it is products we are dealing with and tends to become fuzzy when we deal with services.
Elaborating on how a Private Labeling Model Works
In this arrangement, the product is manufactured under a contract undertaken by third-party manufacturers and then sold under your brand umbrella. A third-party service provider has a complete range of services to offer. Apart from manufacturing, there are also private label formulations and even branding! It is a complete package deal on offer.
As a brand owner, all you need to do is pay for the services rendered to you. It is essential to mention that it is you who actually specifies every little detail about the product on offer. You decide what goes into the supplement; you also decide on the packaging and finalize the designs on the label and so on. The product is then readied and shipped to your warehouse from where you distribute them to either wholesaler or directly to your consumers or customers, whichever is applicable.
Looking Closely at White Label Products
When you choose a “White Label” product model, it is again manufactured by a third party and sold under your brand umbrella. However, here, as a brand owner and a buyer, you simply specify how the label should appear. Your scope ends there! The manufacturing facility that you have chosen is an expert and the product created there will not require any guidance or specifications from you. This is because; they manufacture similar products under different brand names and therefore have complete control over how the product is made and also how it is packaged.
So, if you deal in supplements, a private label chocolate supplement will offer you more control over your product than a white label chocolate supplement would! Naturally, if you are keen on keeping a tight vigil on the kind of product that represents your brand label, private labeling is your pick!
Choosing Your Partner
Whether it is private labeling or white labeling, choosing your partner carefully is important. You need to look for experience, discipline, and professionalism.