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Creating a Private Label Program

By Shirley Frazier
Sweet Survival®/GiftBasketBusiness.com

Private labeling brands food and snack items with your own logo. It works to your advantage within gifts given on the corporate level. Proceeding into this business phase, usually associated with intermediate to advanced businesses, is not difficult, but it's best to know the pros and cons as you move forward.

Consider the reasons why you want to put your name on a product. Do you want customers to only order from you and not the manufacturer, whose name and phone number are detailed on the package?

Perhaps you’re looking to position your company to work with certain types of corporations or individuals, such as wealthy buyers or those with connections to more prestigious accounts rather than marketing solely to everyday people.
 
Whatever your reasons, if you decide to move forward with a private labeling program, you’ll find a bevy of manufacturers ready to assist you.

But before you attach the first label, learn the laws that govern this practice. The Federal government has stepped aside where private labeling is concerned, allowing each state to create its own rules and regulations.

On one hand, private labels give your business a new look, feel, and class. Conversely, you could be setting yourself up for a lawsuit from a recipient who cracked a tooth on popcorn that bears your name or has an allergic reaction to an ingredient.

When your name is front and center on the packaging, you become the prime target. Manufacturers apply content and nutrition labels to the back of each package, which is regulated by the U.S. Food and Drug Administration. These labels usually include the manufacturer’s name and address.

Blackening the company’s telephone number and Web site address is permitted, if you believe such information will re-route your sales, but it may not be wise to tamper with other details. Removing the company’s name from the labeling will place your company in the line of fire if a problem arise.

We prefer customers to call us for products rather than call the manufacturers, so we must continue to create strong relationships with our clients to keep the profits in our pockets. We cannot have it both ways. We cannot remove manufacturers’ names and expect no consequences if a product becomes faulty or harmful.

Click here for Page 2 learn about Private Label laws in your state.

©Shirley George Frazier. All rights reserved.

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Note: Information in articles available on this site is not a substitute for professional advice.

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