First let’s make sure the definition of private label is understood. A private label product is one that a retailer gets produced by a third-party but sells under its own brand name. However, the retailer controls everything about the cannabis product or products that are created. That includes the specs of the cannabis product, how it’s packaged, and everything else besides.
After the manufacturing and packaging is done, the private label cannabis products are delivered to the retailer to sell. As far as people shopping online or in a dispensary are concerned, they’re the company’s ‘own brand’ products.
So why should you consider private labeling for your cannabis product? Easy – it’s because there are a myriad of advantages for product creators. The following are four of the most notable:
1. Adaptability
Some cannabis product developers depend on suppliers for the raw ingredients, and they rely on them to react to market demand. If customers want new features or something goes out of “vogue”, suppliers must adapt their offerings. However, when a retailer gets private label cannabis products manufactured, they can be more agile. With a quick video call online, they can tell a manufacturer to tweak the product accordingly. For cannabis edibles, for example, that may mean switching to nano-infusion so you eliminate the harsh cannabis smell and taste.
2. Assistance with production
An experienced white label manufacturer will likely have experience that can assist you, even if you come with a fully developed product. They will be able to offer advice on infused cannabis amounts, options between cannabis and CBD, even packaging ideas. And when it’s finalized, you will have final say on the specs themselves including color, shape and more. A good white label company will also be able to guarantee production times, consistency and on-time delivery.
3. Control over pricing
With private labeling, you will understand your final cost to have your cannabis product manufactured and shipped. That way, you can make sure you are pricing it correctly to ensure a healthy margin. It’s hard to estimate costs accurately for yourself when you are just beginning.
4. Control over branding
Consumers don’t care who actually makes the product – they are loyal because of the brand itself and the positive attributes of the product. The fact that someone else is using your recipe and putting your logo on the packaging shouldn’t matter at all.