Private Label goods are products that are manufactured for a specific brand or retailer. Private labeling is becoming increasingly popular for retailers, as many of them are heavily investing in their own brands. This trend is something that seems to fluctuate over time – retailers bring in the biggest brands and learn what products are selling best. They then begin buying private label goods under their own brands to substitute the existing brands and either make high profit margins or sell for lower prices. What tends to happen over time, since consumers tend to look for brands they know and trust, is the retailers bring the established brands back in to keep customers happy. This is an endless cycle – and one that can be unpredictable for private label goods manufacturers.
If you’re a private label goods manufacturer, and your client discontinues a product -you’re left with a unique scenario. Where do you sell the remaining inventory? Most likely you are contractually obligated not to sell it to the retailer’s competitors. The answer to this question varies depending on your contract and relationship with the retailer – but contacting a buyer like myself, at MAC Wholesale, is a safe method of turning the remaining inventory into cash.
Here are the 3 most common solutions which MAC Wholesale can offer you to buy and resell your private label goods and honor your manufacturing agreement with the brand owner:
- Relabeling or Rebranding
We have the ability to re-label or completely rebrand the packaging of the merchandise. This may involve putting labels over the branding, or a complete packaging redesign.
- Geographic Sales Restrictions
We have the ability to buy goods with geographical restrictions, to ensure the goods are not resold in the same geographic markets as your customer’s stores. This includes the ability to export internationally.
- Marketing Restrictions
We can restrict how the products are advertised after they are sold. The most popular advertising restrictions are “no online retailers” and “no print ads.”
Does this all sound great? Of course – but please keep in mind that the more restrictions that are involved with buying the goods, the larger the risk and cost is for the buyer – and therefore the lower the offer will likely be. This is not meant to scare you away, but it’s just something you need to be aware of.
Choosing how to sell your private label goods to a 3rd party is something that will differ on a case by case basis and will depend on your relationship and contract with the retailer the goods were manufactured for. Over the past 10 years, MAC Wholesale has purchased private labeled goods that were manufactured for some of the largest retailers, as well as some of the biggest retail brands. We resell the goods discreetly and based upon our agreements with the manufacturers we buy from. Our goal is to buy your private label goods so that you’re not stuck with them – and sell through them through our off-price retail channels so that it does not harm your relationship with your private label customer.
If you’re a private label manufacturer with inventory to sell, please contact me for an offer today!