To start off we should define the difference between white label and private label. After this is clear it will be easier to decide which of the two would better suit your company and its needs to further steer it in the right direction.
In short, both business models allow you to focus exclusively on marketing whilst we deal with the production side of things. In so doing there is no need for you to worry about the technical aspects of the deal. Due to our expertise in this field you will save both time and money by outsourcing this aspect to us.
In the case of white label marketing a product or service can be provided to multiple companies, each of them selling the same product though rebranding it as their own.
Whereas private labeling will ensure a greater degree of exclusivity and customization options.
The Key differences:
As stated the key difference is Exclusivity. This is the core distinction between white label and private label marketing. Private label products are manufactured exclusively for one specific customer so as to guarantee that competing companies will not be selling the exact same products.
White labeling on the other hand means that the same product is available to a multitude of companies. Which also makes it easier for new companies to enter the market in specialized industries as pre-built solutions are more readily available. The uniqueness of these products hinges on marketing, branding and customization choices that were made by the manufacturer.
When to choose private label:
The main advantage behind private labeling is uniqueness. When working with a private label you have the opportunity to offer a truly unique and exclusive product which means you have to worry a little less about competitors since you are offering something distinct. Because of this there is a good potential for profit to be made. In addition, investment costs can be relatively low so long as the target niche is carefully chosen. In short, Private Labeling is a great choice when you want to focus on delivering a specific product to a specific, targeted audience.
When to choose white label:
The White Label model is even easier and cheaper, given that the product is already developed and being actively manufactured. Meaning that no additional research and development is needed and thus the margins can be higher as production costs are lower. White labeling becomes particularly interesting when you have an established client base, as the only thing you have to worry about at that point is having a good marketing strategy. Seeing as the manufacturer can essentially take care of everything else. With white labeling it is possible to have a completely finished solution tailored to your business' needs within a very short amount of time, no more than a month. When walking this path you can see a return on investment almost immediately as the only thing you will have to worry about is developing your business strategy and product marketing.