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:
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.
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.