Private Labeling A Product

[dynocat]

Anyone know any good resources or have personal experience with private labeling?

We set one retailer up a couple years ago and now have another requesting info. Just curious if I've been doing it right and can't seem to find any good resources on it.

I'd like to verify how to price a PL product. Currently the PL retailer pays less than wholesale but has a large minimum order quantity. I'm not sure if I should consider it more of a benefit to the retailer than us, in which case, I'd charge more than our wholesale price.

Any info or ideas appreciated.

[vangogh]

The only experience I have with private labeling is with web hosting so this may not apply to your situation. I used to resell someone else's hosting, which is pretty common in the industry. In my case it was simply a way to offer hosting to clients who were already asking so I kept the prices the same as the provider who's plans I was reselling.

Most hosting resellers add value, such as managing the hosting account offering support, and so increase the price.

Thinking as a consumer, most of the private label products I see tend to be less expensive given they don't have the brand name. I'm thinking of all the products I see on the shelf at the supermarket. If you could build a brand for the PL then I would think you could charge more, but if not the price probably needs to be lower since the PL product is likely sitting next to the brand on the same shelf.