When any retailer/supplier gets certain goods, which are made by the wholesale manufacturer with private labeling and is trying to sell it under their label or brand then this will allow you to customize your product’s packaging having your own emblem. With this private labelling, the manufacturer and you as brand owners will sell straight to the customers.
Therefore, if you are planning to be a food wholesaler, as a representative of any specific wholesale private label company of frozen fruits supplier, then here are few things that you should consider while you are going to invest your money.
- Product liability
If you have any of your own product, and if you are selling them then you will be held responsible in case of any injuries, loses or damages are caused due to any defect in your product. Therefore, if you invest in any private label then it will mean that you have to take more responsibility for the product and also about its handling while you are manufacturing them.
Therefore, investing in any supplier who manufactures any defect-free products which also meets requirement of USDA. Also, quality control is extremely important while building your brand value.
- Watch your pricing
With any private label, you must have full control over pricing. This is fine, but there can be a downside too, as all of us want to earn money, and if you are a private labeler, but not a manufacturer, then you are adding another company in the supply chain, who also need the share of the pie. So, make sure that you are able to run your production with much smaller margin, otherwise your item will never move from the shelf.
You must buy any right kind of product liability insurance for covering the products that you want to sell. You must play it safe while taking insurance coverage which can really save your business. Many companies are there who handle product which may recall with insurance ranging anything between $25,000 to $100,000,000.
- Product recall responsibility
Both the wholesalers as well as sellers are responsible to issue any public notice if any defected product has gone into pipeline. Remember here you are not the owner of this product, so make sure that you can really stand behind it.
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