Private Label as a Marketing and Business Tool
Use of Private Label goes well beyond the Store Brands, though certainly this is the most frequent situation in which a customer will have contact with one.
Several corporations source an extremely wide range of products from specialized manufacturers, which may or may not own their brand. The reasons for this business practice are several. A company, having identified a business opportunity in a new product or groups of products, may assess that setting up their own production line or facility may require a substantial investment in equipment, human resources, patents and so forth. In many cases, a viable alternative is to source from a specialized company that has already made such investments and that has spare production capacity. If the two companies find that the market situation allows to avoid or minimize direct competition without stealing each other's market share (cannibalization), then both companies may find an agreement whereby the specialized manufacturer supplies the goods to the other. The methods to reduce 'cannibalization' are general marketing practices such as: dedicated distribution channels, different image and customer perception of the brands, pricing, separate regional presence etc.
Private Label may be an extremely profitable business for companies or corporations commanding an important share of the market with certain products that enjoy a high customer recognition.
As sophisticated technologies become widespread, and even subsidized, in emerging countries (generally with export-driven economies), sourcing of a wide range of products can be made at very low cost. These same products may have prices that allow for net margins to account up to several times the cost of the goods sold. Customers may be unaware of this business practice and be paying higher prices for products that differ little from others with less famous brands. On the other hand, some companies do provide additional guarantees to these products offering better quality, customer support, and additional services.
Customers should know about this business practice and paying high prices unless a real advantage on other products is clearly identifiable.
SUNTAK-PHARMA Private Label Service
We have been a major supplier of Private Label products to all types of Private Label/Store Brand customers. SUNTAK-PHARMA currently ships product to Private Label/Store Brand customers all across the
EVERYTHING that SUNTAK-PHARMA produces is available to our Private Label/Store Brand customers. (Some items subject to production minimum order quantities):
SUNTAK-PHARMA is also open to adding new and exciting flavors for Private Label/Store Brand customers as long as we can meet our “Production Minimum Order Quantity” and we feel the business will be on going.
When producing a Private Label/Store Brand item, we have a “Production Minimum Order Quantity” per item per production run. That is the minimum production run we can do on an item and still realize some production efficiency.
SUNTAK-PHARMA can package the Private Label/Store Brand product in many formats, which include tin, plastic card, paper box, individually wrapped Bags, etc. We are open to discussing all types of packaging options.
SUNTAK-PHARMA also has the ability to ship the product in regular open stock cases, display cases, display pallets, etc. We can ship in virtually any format.
In addition to all the items and flavors we have available, SUNTAK-PHARMA also offers the services of our in-house graphics department to Private Label/Store Brand customers to help them design their bags and packages. Most of our Private Label/Store Brand customers have found our in- house graphics department to be very helpful, cost effective and time saving.
Please take the time to look in the “Products” section and check out all the items we currently produce to get ideas for your next Private Label/Store Brand item. SUNTAK-PHARMA would love the opportunity to supply you with all your Private Label/Store Brand mints needs!
