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Giving your Business a White Label Solution (and why it’s so important!)

Do you often think about efficiency and want to find better and faster solutions for your business?

Especially if you’re not a tech whizz, white labelling might be a solution for you. We’ve outlined the ins and outs of a white label solution for you! You’re welcome!

The curse of the entrepreneurial spirit! Wrestling with one's ego being a daily pastime we can all relate to, after all, we are the visionaries and ideas people; the ones who seek to rise above the banality of the plan-society marked for us. However, do you ever get the niggling feeling that despite your brilliance perhaps there are others you could trust to build certain elements of your business? Perhaps manufacturing costs are eating into your budget? Or perhaps you don’t possess the knowledge to build your platform to the next level and at the speed, you would like? An existential query no doubt. Perhaps to be tackled on a grander scale for a different time. For now, however, if you wish to take a bite-sized element, we can provide a solution to the technological or goods aspect! After all, it’s difficult to be both a marketing genius, an innovator and a tech specialist. Go easy on yourself! This is where White labelling enters the frame, a solution to technological and product sourcing that allows you to focus on the things you’re best at!

How does White Labelling work?

White Labelling - to be defined by the tin, is when a product created by a third party exchanges its logo and branding in favour of the logo requested by the purchaser of the product.

Which naturally leads us to…

White Labelling - to be defined in layman's terms, is essentially the act of deferring an element of your company to a third party specialist or supplier to free up more resources and time for both yourself and your team. White labels create and provide services and products on your behalf, but with YOUR branding! Not to be confused with ‘private’ labelling which we will get into later!

What are the Benefits of a White Label?

Why would White labelling be of benefit to yourself or your business? Well, here are a few you may want to consider!

  • You become the beneficiary of a company whose sole purpose is to build and provide the service or product you’re looking to provide. This clinical level of expertise is relatively difficult to replicate otherwise.
  • Having removed the hassle of trying to replicate the entire manufacturing process alone, you have now freed up your time which can be reinvested into either your business or perhaps yourself? And speaking of resources...
  • Perhaps you have now saved expenditures on the human variation? Your team can now be reassigned into marketing, selling or innovating your company, ensuring you squeeze every last drop of potential out of your vision!
How to work a white label
Photo by Tim Schmidbauer on Unsplash

Examples of White Labelling?

We are now able to plough into some real-life examples of white labelling! (That’s what makes it palatable right?) I have succinctly broken it down into bullet points. Because everybody loves bullet points. Without further ado...

  • Software and web products are likely the most lucrative utilisation of White Labels. Often these products form the cornerstone of startups who perhaps don’t have the time, knowledge or budget to extend their platform themselves, allowing them to rapidly expand their product with state of the art specifications!
  • Ever been handed a free rain poncho at a festival? Yep, clothing is also commonly white label manufactured, from supermarket T-shirts to Yoga pants! The cosmetics industry is also awash with white labelled products, their demographic is armed to the teeth with income willing to be spent on face washes, makeup products, customised skincare and countless more! Brands like Sainsbury's and Primark all have an army of white label products on their shelves!    
  • You may have seen our previous blog post about our partner the free golfing scorecard app SCHALA, SCHALA uses our payment technology at Collctiv within their app! In this scenario, It's Collctiv who are providing the While Label product! - A white label group payment system, if you will.

Need a white label solution to group payments? Why not get in touch with Collctiv?

Is White Labelling legal?

There is no need to be concerned about the legality! - White labelling is a 100% legal way of conducting business!

However, as a buyer of White Label produce it may be worth bearing in mind that while most companies will be transparent in their communication, there is no way to guarantee that you know everything that has gone into the makeup of a product and could be liable should any quality or safety issues arise.

Many companies seek to avoid this hiccup by employing various ‘testers’ to ensure that the product on their shelves is totally free from any obstacles!

What is the difference between White Labelling and Private Labelling?

You may have seen the phrase Private Labelling? What are the similarities and differences in regards to White Labelling?

Fortunately, it's quite simple to differentiate. A private label is simply a White label product that is owned exclusively by another retailer. This leaves product customisation within the discretion of the company who has bought the Private labelled produce. This often stands as the more expensive route, however; ensuring that only you can sell the product may give an advantage over competitors.

Is White Labelling Profitable?

This is the big one right? After all the promise; all the potential hoo-ha, is White Labelling even going to stand to make your company profitable? Is it worth it?

Well, sorry to disappoint, White labelling is obviously not a fix-it-all solution to a bad product (White Label ponchos would not have saved the Fyre festival!) However, it can provide a fantastic resource in building your business, which definitely could help you on your way to creating a profitable million dollar business - It’s all in how you use it!

If you want to know more about how Collctiv’s white labelling group payments solution enables friction-free and fast transactions, visit our blog post on our partnership with SCHALA.

What are your thoughts? Get in touch with us and share your opinion on white labelling and our solution.

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