The key to long-term business success is building a loyal customer base. Branding through private labeling is a great way to build loyalty from customers who like your products. With limited accessibility, customers become attached to your brand, allowing them to feel as though they are among a select few that own it, which ultimately increases loyalty and sales among your customer base.
Brands bearing own-labels usually have a higher profit margin than resale products. The reason for this is because the cost of grading, roasting and packaging coffee products is generally lower than buying products from a local supplier, especially in the developed world where manufacturing and marketing costs are much higher
Private labelling allows you to separate yourself from your competitors. One of the best things about private labels is that you alone have the exclusive right to sell the product. Good marketing will create a demand for it, which benefits you because you are your customers’ only source for the product … monopoly.
Retailers have responded to the increasing demands of the consumer by ensuring their Private-Label-Products are more innovative, diverse and therefore more appealing than ever before. Consequently, by establishing a much better balance of quality and affordability, Private-Label-Goods have skyrocketed in popularity, resulting in far greater opportunities than ever before for these products.
In addition to exclusively selling your product, you may consider operating as a wholesaler for your brand and offering limited access to other retailers that pay a premium acquisition cost for the right to carry your brand. This will generate additional income as well as ensure your brand’s exposure.