Products which are generally manufactured or provided by one company, then labelled with another company's brand, are known as private-label products.
Private labelling is a business model where a manufacturer of physical goods sells unbranded products to resellers who rebrand the products and sell them to end consumers. This manufacturer-reseller model is effective because it allows both the manufacturer and the reseller to specialize and avoid the costs of owning the entire value chain.
Biotek Corporation is the leading global brand when it comes to manufacturing and distribution of safety and health-related products. The company manufactures and supply their products in private labelling for other brands. Because of its strict quality standards, state-of-the-art production plants and high-quality products many famous brands prefer us as their manufacturing partners.
The advantages of private label products
Increased margins
Typically, since you are bypassing the brand name on a private-labelled product, there is no added cost for the vendor. Vendors must spend money to promoted branded products, but you pay only the product cost without paying a premium for the brand name or the expensive marketing campaign that goes with it.
Reduced Competition
If you are a retailer who matches prices, private-labelled goods provide a great benefit. In many cases, you can get your supplier to make you the same product, but without their label on it. Then you can still charge full price for your product when your competition puts the branded version on sale. You also have full control, depending on your supplier, to alter the product to address any customer complaints or issues.
Compensation Booster
As a business owner, you can run sales contests on your private label products, because they have more profit margin, allowing you to give more money to your sales team. Even after paying out the incentives, you'll likely earn more money than the branded-product version, because of you'll pay less for private-labelled products, while being able to sell them at or around the same price as comparable branded products.