As a business owner, you may reach a point where you no longer have the means to manufacture and expand your product lines. Consider private labeling. It is a great way to form a complete line of product offerings. You get to focus on building your brand while the manufacturer makes you quality products.

The Private Label Manufacturers Association (PLMA) reported, “In 2021, private label sales increased by $1.9 billion in volume over the previous year.”

VFI manufactures and private labels high-performance thermoset polymers for a variety of industries. We’ve helped countless companies add to their existing business lines. You may have used one of our products before but were unaware because it was under a different brand name.

What Does Private Labeling Mean?

Private labeling occurs when a company manufactures a product and sells it to another. That business then sells the manufacturer’s product to customers under different branding/labeling. The manufacturer profits from the sale of the product to the buyer. The buyer profits by selling to customers.

At VFI, we use our own formulas and equipment to make products for other companies in the molding and casting, theming, industrial coating, and roofing markets. Note: when you sign a private label agreement with VFI, we retain ownership of the formula. We stand behind the durability and longevity of all our products, even if they aren’t under our company label. If you have questions about how we can manufacturer a product for you, our customer service reps are happy to help.

Who Should Use Private Labeling?

• Companies that want to increase profits without creating new products themselves.
• Companies that are looking to add new products to their current lineup.
• Companies that want to get their products into people’s hands.
• Companies that have no way of manufacturing new products themselves.
• Companies that want to start selling a product but have no prior experience.

How Does Private Labeling Work?

• Identify a hole in your existing product line. Find a manufacturer that produces quality materials that they stand behind. Find a partner that can offer a lasting business relationship. Join competitive markets by selling a product you can’t otherwise make yourself.
• Contact the manufacturer. Look for manufacturers that make the items you want to sell. VFI can private label for a vast number of industries so you don’t have to source from multiple suppliers. We use our on-site lab – staffed with talented chemists – to create products that meet your specific needs.
• Order samples and perform in-field testing. Before you start offering a new product, you’ll probably want to test it yourself. We can send you wet and dry samples so that you’re sure our products meet your standards.

Benefits of Private Labeling

• You will be able to utilize existing customer loyalty, resulting in a lower-cost product launch.
• Partnering with a manufacturer means there’s no need to retrain your employees or hire more.
• By not having to purchase additional equipment, you can avoid associated capital expenditures.
• You will be able to go to market faster by avoiding the trial-and-error period of product development.
• Since the material will have already passed industry-related tests, you eliminate testing agency failures and risks. Most chemical manufacturers also provide Safety Data Sheets, so you can be sure your private label products meet safety standards.

White Label vs. Private Label

Some people confuse private labeling with white labeling, but they are different. Private labeling is when a product is sold through one retailer. White labeling is when a product is sold to multiple retailers who brand and price it differently. VFI does not white label.