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Indie Retailing 101: What is Private Label?

What are Private Label Products?

  • Private label products are taking an existing product, like BIC lighters or rolling papers, and putting your brand name on them.

  • By doing this, you effectively create and sell your own product.

Why are They Valuable?

  • By placing your brand on popular, trusted products, that trust transfers to your brand and offers another touch point with your consumers long after the original purchase is done.

  • Every time that lighter is flicked, papers are rolled with, or a 510 battery is connected to a new cartridge, your brand is seen, used, and experienced.

  • If well designed, these branded products can be coveted by your consumer base and are shared organically, marketing on your behalf.

How Can This Add to Your Profit Line?

  • Branded offerings can have gross margins of 50-65%, significantly higher than Cannabis products.

  • Core products like rolling papers and lighters are on the higher end, around 60-65%.

  • Branded accessories can impact your bottom line in a significant way:

  1. Adding a branded lighter to a Cannabis sale adds $1.00 of profit, but over 700 transactions this translates into $700 in addition profit per month.

  2. Adding a 510 battery to a Cannabis sale adds $10.00 of profit, but over 700 transactions this translates into $7,000 in addition profit per month.

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