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White Label vs Private Label CBD Products

The CBD industry has recorded an unprecedented growth in the last decade, with manufacturers and CBD distributor companies using various retail channels to share their products. Among these channels, options include white label and private label. Sawyer Labs is an industrial manufacturer of wholesale and private label CBD products and understands the confusion surrounding these two concepts. Below are the highlights to help set the two apart.

White Label CBD Products

This is where a manufacturer produces CBD products on a large scale and then sells them to retailers, who label them under their brand names. The products are formulated using the same formula and are said to be generic. For instance, products from two retailers who bought the same manufacturer’s development will be identical, with the only difference between them being the package and label.

Private label CBD products

These are products which have been co-produced by a manufacturer and a retailer who buys them. The product is not generic and varies from one retailer to another, with exclusive rights to their CBD products.

Time to market

White label CBD products have a shorter lead time since they have been thoroughly evaluated. They help businesses save on time on money that would have been spent on research and development. Having turnkey products can help small enterprises to achieve a quick turnaround. Private label CBD products have a longer lead time since a retailer must provide specifications to the CBD distributor. Many decisions, including design and packaging, have to be made before the product is ready for sale. Customization is profitable in the long run since it helps set one’s products apart from the competition.

Competitive edge

Creating a competitive edge is vital when buying white label products. Your products are similar to the competition, save for packaging. Companies with established marketing departments and strong brand identities have an added advantage when acquiring white label CBD products. In private label, CBD products help a company establish a trademark and exclusive rights on a product. Though this may take time, it pays for companies dealing with unique products that require enhanced design and customization.