Private label is a term used to refer to a situation where a retailer contracts the services of a manufacturer or producer to label drugs under their name. In such a case, the manufacturer or producer of the pharmaceuticals will either engage in the activity of producing drugs solely for private labels or produce pharmaceuticals under their brand as well as under the brand of the private label. A private label is sometimes referred to as a private brand. If you are a well-established pharmacy name or brand, private labelling may be the best way to build your brand name further. Private labelling for pharmaceutical products has been on the rise and the reasons why are very compelling. Below are some of the reasons, from both the consumer and the retailer perspectives.
Private label pharmaceutical products are cheaper
When you compare how much it will cost you to buy a dosage of paracetamol from a manufacturer brand to how much it will cost you to buy the same from a private brand, you will be surprised how much money you will be able to save. This is so because the cost of production for private labels is cheaper compared to that of a manufacturer's brand. Some pharmaceuticals are up to 40% cheaper when bought under a private brand as opposed to when purchased under a manufacturer brand name. It is imperative to note, however, that some private brands will sell the pharmaceutical products at a higher price than the manufacturer brand.
The quality of products remains high
In as much as the prices are lower, the quality of the products remains unchanged. The quality of the private label will be the same quality as the manufacturer brand. As a customer, getting high quality products at a significantly reduced price is what most people look out for.
Private labelling grows the retailer/ wholesaler's brand name
When you are a retailer, the success of your business will depend on your ability to penetrate the market and retain consumers. Once you have established yourself as a reliable pharmacy, having private label products in stock will ensure you keep the existing customers as well as attract new ones.
Private label products sell faster
There are two reasons for this; the products are cheaper, and the products bare your name, logo, address and so on. Customers will prefer quality products at the lowest possible rates, hence will buy more of your private label than the manufacturer's brand. Moreover, when you are established, customers will prefer products with your name as opposed to manufacturer brands unknown to them.
For more information, contact local professionals like those found at Neo Health [OTC] pty ltd.
Share12 September 2018
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