White Label vs. Private Label – What’s the difference?

A collection of product bottles and jars sporting blank white labels make us wonder, what is the difference between white label vs private label?
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Let’s discuss the difference between white label and private label. The two are similar and the differences subtle, but they are not the same. That being said, it’s critical to understand which strategy best suits your business model. So, if you’re eager to get started or to add new products to your already wildly successful brand? White labeling is hot and trending in many industries, especially the cannabis, CBD & hemp industries. But, is it right for you?

White label or even private label might work for you. But, in that case, is branding still a valid concern?

I’m so glad you asked! Of course branding is a concern! People don’t buy products, they buy brands, and you’ll need to find ways to stand out and be seen amongst a sea of other, similar brands.

What Are White Label Products?

White label products are mass produced by a manufacturer as a generic product, and sold to a retailer who will in turn add their own label and sell it under their brand name. The formula is standard and typically, can not be customized.

What Are Private Label Products?

Private label products are produced by a manufacturer as well, but in partnership with the brand to create a unique formulation. It is a longer, more expensive undertaking, but it results in an exclusive product.  Retail brands use this to differentiate their products and cater to their niche audience.

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White Label vs. Private Label How To Decide?

How do business owners decide which is the best investment for them? Well, it’s important to weigh the price differential. White labeling is more affordable, but the product is not original.  Private label requires a more substantial investment, but it allows for collaboration, flexibility and exclusivity with regards to formulation, and in some cases, trademarking and market share. So, unless you have a loyal, expansive customer base, and exceptional branding/marketing, it could be difficult to compete against established, known brands.

What is exactly the same?

BRANDING! In the end, no matter the direction you choose, white label product or a private label, the only way to optimize your visibility and assure that your product stands out is branding. Having professional, eye-catching branding, a spot on brand story and a unique branded marketing strategy can earn you distribution, shelf space, loyal customers and yes, make you millions.

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