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Why Should We Consider Private Labeling In Our Retail Operations?
There are several reasons why a team, venue or corporation should considering private labeling for retail.
The main reasons are to create the same quality items for much less cost. The lower cost enables retail
operations to offer better price points, which leads to greater inventory turns, and overall improvement in gross
profit margins.
What About Our Licensed Vendors?
A mistake most teams and venues make is they don’t explore the private label product guidelines within their licensing
agreements, thus they fail to discover that there is usually much more latitude in the agreements. We help our clients
pursue private labeling to its fullest potential without going outside those same guidelines.
Don’t We Have To Commit to Huge Production Runs?
With APC, you don’t have to do huge runs because we suggest you focus on core, bread-and-butter items that have the
greatest shelf life and that can make the most positive impact. Additionally, because of our better pricing, your
buying power almost doubles; and those new lower price points mean greater sell-through and turns of goods. Our clients
find that the extra inventory at these lower costs is more efficient than using licensed product for use as corporate
spiffs and for other internal and external promotions.
We Buy Direct Now, How Much Can You Really Save Us?
Buying direct from a vendor is nice, but it’s not the same as buying at the manufacturer level where we buy.
Typically when clients buy direct from vendors, they’re still paying 20 to 50% more than we are paying because that
vendor is buying from the same or similar manufacturer we’re buying from…they’re just putting on one more layer of
unnecessary profit that you pay for!
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