Private Label
What is a Private Label?
Differences between Private Label & Custom Contract Manufacturing?
There is a lot of confusion about the differences between private label and contract manufacturing as well as advantages and disadvantages that come with either solution. Both solutions can work well, but will depend fully on the final product requirements from the client. Ultimately the end goal for either solution is the same, to create a great product that customers will love and buy.
Advantages & Disadvantages of Private Label and Custom Contract Manufacturing
Private Label
Custom Contract Manufacturing
Private Label
Custom Contract Manufacturing
Private Label
When companies purchase products using private label manufacturing, they are essentially putting their name on a product that a manufacturer has already designed and manufactured. The manufacturer usually retains control over these products, specifications, quality and manufacturing process. In other terms, the manufacturer is the owner of the product ip (intellectual property).
“As a Full Turnkey Contract Manufacturer, our team can offer you with advice and expertise in an ever changing competitive market.”
Custom Contract Manufacturing
In contract manufacturing, the buyer approaches the manufacturer to work on the design and manufacturing of a product per spec. While the manufacturer will often offer advice and expertise, it is the buyer who retains final say, responsibility, and control over the product produced.
The Conclusion
There are pros and cons to private labeling vs custom contract manufacturing. It is important to understand the differences between the method you choose. Custom contract manufacturing ultimately provides the client more freedom over the overall product and gives a better price advantage on each unit that is produced.
If you are interested in manufacturing a product, please contact our team at Dynamic Blending to discuss any questions you might have.
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