White label vs. Private label: What’s the better for your business?
A successful business requires frequent changes and innovations that keep things fresh and vivid. Any company or agency that tends to sustain itself in the market must grow with time.
Although business growth requires time, effort, budget, and commitment, there are excellent methods in the business world that can make the whole process much easier.
These are white-label and private-label business models. Although white label and private label are very familiar terms, many people still do not fully understand the difference between white labeling vs private labeling.
In the following text, we will deal in detail with the definition of these terms, but also reveal the difference between white label vs private label. Keep reading to find out which of these models is better for your business.
White label vs. Private label the difference
At the very base of these concepts lies almost the same definition.
Both White label and Private label are using third-party manufacturers to make their products or services and put their brand name on it.
What is a White Label?
White Label refers to the purchase and branding of finished products or services.
When it comes to White label, the manufacturer is already experienced in the production of certain products and services, and it is up to you to choose the ones that best suit your business.
White labeling is the resale of finished products or services that you as a company or agency brand under your name.
What is a Private Label?
On the other hand, Private Label offers more opportunities.
Private label offers the possibility of customization of finished products, as well as the creation of new products according to your brand necessity or idea.
Products or services created through private labels are sold only to the company or agency that requested them.
Private label vs. white label: Which one is better for your business?
You probably understand the difference between white label and private label by now, but you may still not be sure which of these models is right for your business
To make the white labeling vs. private labeling story closer to you we will briefly go through another important segment - costs and timeline.
Costs and timeline
When it comes to the Private label model, it is important to note that its use is more expensive.
Creating products and services under Private labels takes time, so finished products cannot be delivered in a short period as is the case with the White label model.
Furthermore, the costs of creating custom-made products and services can be pricey.
On the other hand, white-label manufacturers have ready-made products or services that they offer to interested companies or agencies.
Although the speed of delivery depends on what is in question, it usually does not take as much time as is the case with the Private label model.
Also, the price of White label products or services can be significantly more favorable than those under Private label.
Often, the White label model represents the production of distinct products or services sold to multiple retailers at the same time.
The Importance of Branding in White label and Private label world
Someone once said, "No one is buying a product, everyone is buying a brand." And we can't agree more with this when it comes to white labeling and private labeling.
No matter what you sell White label, or Private label product or service, the branding is what makes you stand out on the market.
Once you've accomplished the main goals and visions of your brand, set your target group, and go on the ride for your spot on the Sun you will know whether to choose a White label or Private label.
Before that moment happens, be aware of the importance of branding and make sure that you've done everything to make your brand stable, with a great authentic voice, and an amazing plan.
If you don't feel secure with how your branding is going, you can always hire an expert to make your brand stand out.
Examples of White labeling and Private labeling
One example of the White label model is the sale of third-party products and services. Let's take for example that you want to start a fashion business and make unique pieces of clothing that you will brand under your name.
The production of specific garments such as sweatshirts, t-shirts, or tracksuits could be quite an expensive investment.
This is where the White label comes into play, offering the possibility of ready-made clothing products that you can further design and brand as you wish.
Another example of White labeling can be the sale of digital services.
If you are a digital agency that wants to expand your business, but you don't want to start everything from scratch, using white label services can be a good starting point.
On the other hand, if, for example, you want to try your hand at the beauty industry to create a new formula according to your recipe that will remain only yours - you should consider the Private label model.
- Both White label and Private label can help you grow the scope of your business
- If you want to make a quick change in your company, go for a White label model
- With a Private label, you will have an authentic product or service, but it’ll take some time for it to be done
- Private Label can be pricey, if you have budget limitations go with White label model
- No matter what model you choose, White label or Private label branding is the most important segment of your business