While I attended SOHO EXPO 2009 last weekend, I chatted with Phillip Vigeant, vice president of Reliance Private Label Supplements. Contrary to popular belief, no matter the size of your business—big or small—you can develop a private label, according to Vigeant.
1. Shield prices. Promote private label products at the same time you promote comparable national brand products within the same category.
2. Manage the price gap. The difference between the price of national brands and private labels shouldn’t be too large.
3. Offer second-tier private labels. This line of products competes with lesser national brands.
4. Educate shoppers. Convince shoppers that they’ll save money without sacrificing quality.
Check out the story for more details.
I’d love to hear your thoughts on private labels and whether you think they are good or bad for the natural products industry. If you use private labels, what are your strategies for success? If not, why not? NFM will explore this topic in more detail in a future issue. Share your feedback below.