How to start your Private CBD Label in Europe
Estimated reading time: 10 minutes
Table of contents:
- White label versus private label
- White Label option on all of our products!
- Start your own brand
- Freedom to set your own prices
- Your products and legal information
- We can even help you design your own brand
- Which is Better for My Business: White Label or Private Label?
- Pros and cons: White label versus private label
To get into the CBD industry, most people don't want to spend too much time learning how to make CBD products technically. So, they may get the goods they require from white-label or private-label producers. On top of that, these producers would be the ones to supply the bulk of the necessary regulatory paperwork and quality certifications.
White label versus private label
What are CBD products with a white-label?
If you want to get into the CBD business, you should launch your product quickly. It is the fastest way to do it. It is also the easiest way to start a business in CBD.
As the name suggests, this business model is for a manufacturer who already has more than one product on the market. These products are ready to be labeled and marketed and sold by someone who wants to start a CBD business and sell CBD products.
In the white label business model, there is no need to think about the quality or specifications of the products. Instead, the manufacturer gives all the information about the product.
It's a good way for a manufacturer to do business because they can focus on making things, making new kinds of things, and doing research and development. They make money by selling their products to other businesses that sell CBD products.
For people who are already in the CBD business or are just starting out, this means that they can start a business almost right away at a low cost. Because the manufacturer will do everything, including labeling the product. So, white-label products mean that the company that makes the product will brand, label, and print the client's logo on the product.
Also, it's important to know that manufacturers only label the product (in white labeling) the way the client wants, but they don't make the product the way the client wants. Most of the time, they already have items in stock and ready to sell. So, they can give clients products with their label very quickly and in very small quantities.
White-Label in a nutshell
So, a white label business model can be a good way to start a business with less money or quickly get into a certain product segment. But it might be hard to find the right product and make it stand out from the rest. These are generic products, and many stores may sell products with the same ingredients but different labels or brands.
What are CBD products with a private label?
Private labeling is a lot like white labeling in a lot of ways. So, things might be hard to understand. In this type of business, too, products are bought from the maker. The people who make the products will then label them based on what the customer wants.
But in private labeling, unlike white-label products, manufacturers can also make products based on what the client wants. It means that the client can come up with new products and ways to make them. This can help set the product apart from other ones on the market.
It means that a person can come into the market with something new to offer. Also, the manufacturer may agree to pack the goods in different ways.
The bad thing about this business is that some products might take longer to make. In many cases, the company that makes the unique product may need some time to start making it, get it approved by different regulatory agencies, etc.
It also means that the company wouldn't sell less than the batch size. Unlike white-labeling, these products are made for specific customers. So, a customer would have to buy the whole batch.
But because the product is unique, it takes less work to market it, and is easier to sell CBD or other products. In this case, the client who placed the order usually owns the intellectual property rights, but this isn't always the case.
Starting a CBD business? Check out our latest blog articles:
White Label option on all of our products!
We, at The Real CBD, offer a white label option on all of our CBD products. This way, you can give our high-quality CBD products their own brand. One of the main benefits is that you can set your own prices for all of our products and grow your business accordingly.
Start your own brand
One of the key benefits is that White Labeling allows you to build your own brand. Your assortment remains consistent, while you offer your customers new products with the look and feel they are already used to. You can continue to build goodwill with your customer base because the packaging is what they are familiar with and comfortable with.
Because your customers already know and trust your brand, they will automatically trust the new products as well. It is proven that customers are satisfied with what they know, and if they love your brand, they will automatically love the new products. It excites them to learn about new products, especially if it is a product they were looking for or want to know more about.
There is also the possibility that you will dive into the business world of CBD and want to start your own business or that you already have a business but don't have much recognition yet. You know exactly what you want and how you want it. You have made preparations and you have done extensive market research. Know what your target market is and you know exactly what your products should look and feel like. The combination of the two, knowing your target market and coming up with the products they would love, is a great recipe for success.
Freedom to set your own prices
One of the other great benefits of having your own brand is that you can set your own prices. This gives you total control over your own market strategy and allows you to cater to a specific market for your products. Usually, if you work with existing brands, they strongly recommend that you use their RRP (recommended retail price). And if you decide not to follow their suggestions, it can lead to angry phone calls or even the end of a business relationship. Companies like this will not be happy when they see their products being sold at a lower price and will eventually stop doing business with you.
You are not bound by the pricing structure of other companies when you decide to sell CBD products under your own label. You are free to set your own prices to meet the needs of your business and marketing structure.
All of our products, which you can find on our website, are available for white labeling. But it doesn't stop there, if you want a specific product with a specific percentage of CBD, or a completely customized product, we would like to help you with that. And because our partners have obtained certification, your products are ready to sell right away.
Your products and legal information
When it comes to packaging and the information required on the package, guidelines can vary from country/area to country. But don't worry, we'll help you every step of the way and make sure all the necessary information is on your own packaging. There are two categories that CBD falls under, cosmetics and dietary supplements. These two product categories have different VAT regimes and different requirements depending on the region where you sell your products.
With our help, your products will have the required information for distribution within the EU.
We can even help you design your own brand
If you are already prepared and have an in-house designer, we can easily send you the formats of the labels and boxes. This way, your designer can update the files with your logo and design and send them back to us for printing.
If you don't have an in-house designer, we have you! Just send us your logo and any appearance preferences. We will take it from there as we work with some very talented designers. They will design what you envisioned for your brand and work with you to achieve it.
Which is Better for My Business: White Label or Private Label?
It depends on the type of business and the needs. For example, white label CBD products might be a great way to quickly start a business. On the other hand, if you want to get into a niche market, private label CBD products might be a better choice.
White label CBD products could be a good choice for people who are just starting out or who want to quickly add more products to their line. Since the products are already with the manufacturer, there isn't much planning to do about how they will be made.
White-label CBD products, on the other hand, may also mean that there aren't many of them. Most of the products would be standard ones that could be bought from many different sellers or resellers.
If a person or company has been in the CBD business for a while, a private label might be a better choice. This method would help you come up with unique products and better serve your clients. It also means that the product is easier to tell apart from other items on the market.
Pros and cons: White label versus private label
There are pros and cons to both a white label and a private label.
White label pros:
- It is the quickest way to get into any market segment.
- Few costs to cover
- There's no need to have product development experts on staff.
- There are no problems with meeting regulations because the manufacturer provides most of the paperwork.
Cons of a white label:
- Not many products to choose from
- You have less control over the products because you can only sell what the manufacturer makes.
- When it's hard to tell one product from another on the market, profits are lower and marketing costs are higher.
- Problems with growing the number of products
- Low customer loyalty because similar products from other sellers are easy to switch out.
Private label pros:
- Being able to bring unique products to market
- Better customer loyalty
- More control over the process of making things
- In the long run, you'll make more money.
Private label cons:
- Need to have certain skills to develop products in-house
- More expensive to buy at first.
- Product launch times are getting longer because manufacturers need more time to make products.
- Some problems with regulations
To sum up, starting a CBD business can be done in many different ways. But these days, it doesn't take long to start selling things.
I am a certified expert in Medicinal Cannabis. We are all about giving correct and trustworthy information. We know how important it is to learn about CBD and cannabis, which is why we want to be your go-to source for trustworthy information. We help you improve your health by using our knowledge and experience as a starting point.
Leave a Reply
Want to join the discussion?Feel free to contribute!