The Advantage of Using Private Label Manufacturers

Today, convenience stores are enjoying faster sales growth, increased expansion and becoming a share leader with an increased presence in more retail channels, owing to the use of private label manufacturer in their business. Recent trends from c-store sales support this fact. Private label manufacturers are now driving sales growth by a continuous focus on categories that were traditional strongholds for national brands. In the United States, the figure is about 40%, and the trend has notably continued to increase. With the introduction of different package sizes and types, new flavors, and new higher-priced premium private label products, these manufacturers have now added a competitive edge thus enabling c-stores sales to reach their target market. Simply put, private label manufacturers offer convenience stores some advantages which are as follows:

  • Convenience stores do not have to compete head-to-head with notable name brands as private labels manufacturers are solely in charge of this.
  • Convenience stores deal directly with suppliers when doing business with private label manufacturers. With this, cost of doing business is significantly reduced in the distribution chain.
  • With private labels, c-stores can create their unique image, which creates a marketing identity, makes customers return for more and promotes stronger customer recognition and loyalty.
  • The packaging and labels are designed to meet the private label owner’s specifications, including product name, description, logo and contact information. This is where private labels manufactures provide a superior product while at the same time providing an advantageously lower price to the convenience stores.
  • Private label manufacturers give more control over pricing, advertising, and distribution. Due to the flexibility of private labeling, stores can acquire manufactured products which can easily be re-branded into a specific purpose. This allows the c-store to display a uniquely designed product with multiple business features. This process can be done in no time and for a lower cost when compared to branded products. Hence, a convenience store can offer a quality product at a discounted price.
  • Using private labels increasingly generate higher sales and increased profit margins back to c-stores, which allow the stores to reinvest revenue back into their operations providing an avenue for increased expansion within their sector.
  • By combining stringent levels of quality, direct control over product placement, lower cost and targeted marketing, the perfect formula for a happy customer is established. Customers come to have a personal attachment to a particular store and specific product; identifying that store as the source to buy any product. By so doing the convenience store places the customer at the highest level of by providing the customer’s needs and also at a reasonable price.

It is clear that in the long run, private label manufacturers will continue to provide a competitive edge to clients (c-stores over national brands). This is because convenience stores owners seek to offer quality have direct control over products that will boost sales and positively impact their customers.