White Label E-Liquid Manufacturing In Australia
As an entrepreneur with a business problem, your first instinct may be to try do-it-yourself solutions. After all, that’s what entrepreneurship is all about, right?
Not always. In many cases, building a customised solution from scratch in an attempt to meet the exact specifications of your business can be a setup for failure.
Not every business develops its offering intending to operate on a B2C model. Some focus on getting resellers and even let such resellers to sell their offerings under their own brand name.
This type of business operation is called white labelling, and the product that’s offered is called a white-labelled product, in this case a while labelled e-juice.
Businesses usually choose this model when they desire to focus just on the manufacturing and production, and not on how the product is marketed, promoted, or sold in the market.
What Is White Label E-Juice Manufacturing?
A white label e-juice is manufactured by a third-party company at premium liquid labs and sold under your brand name. In this case, the e-juice is not restricted to one specific retailer.
The manufacturing companies providing the white label model are usually experts in their domain, so you merely have to decide the e-liquids you are interested in selling with some mostly external customisations.
There is a thin line of difference between the two business models. But, despite the minute differences, choosing the right one significantly impacts your business down the line.
Why Is It Better Than Private Label E-Juice Manufacturing?
Degree of Customisation: All the items have been already produced in the e-juice factory before you make a deal with the manufacturer. So your only primary task that remains is customising the packaging and branding of the e-juice as per your needs.
But when it comes to private label e-juice, you would have to customise your liquids and flavours, the way they look, feel or taste, and in turn, would have to invest more time and money to sell the items that stand out to your buyers.
Product Exclusivity: When you deal with private label products, you will have to send all the specifications of goods to the manufacturer, which remain exclusive to you only. Think of Apple A-series chips. No one in the industry gets to use them but Apple.
On the other hand, white label products are produced in premium liquid labs, tested in the market and are a safe bet for starting a new business despite not being unique and exclusive.
Differences in Cost & ROI: For selling white-label e-juices, all you need to do is advertise them because there is already a market demand for such products. Therefore, there is a scope for a much higher ROI than a private label e-juice with a correct market strategy.
But, when trading private label products, you will need to shell out more money for personal trademarks. Then, add the costs incurred to get all the necessary information for product research, product development, and marketing.
Product Categories: Private label products are mostly physical items such as clothing etc. These goods are produced by manufacturers and resold under specific retailers.
White label products are electronic products, consumables like e-juices along with non-physical entities like services or software. This helps in broadening your scope as a retailer to offer a service attached to the product sold.
These pitfalls can be easily avoided simply if you opt for a white label e-liquid manufacturing, rather than building one yourself. White label e-juice refers to a fully supported premium e-juice that’s made by one company but sold by another.
In a country like Australia, where coming up with a white-lablled e-juice manufacturing was hard, very few companies actually did make it successful.
White label E-Juices are purchased by the latter company without branding. That way, the reseller can customise the flavours and e-liquids with their own brand, logo and identity, allowing customers to associate the product with the reseller.
Meanwhile, the manufacturer can focus on finding cost-effective ways to make the product, without concern for the product’s marketing.
To Wrap Up
In short, a white label e-juice manufacturer can help you utilise your business’s unique branding to offer a product or service without investing in infrastructure or technology creation around the solution.
You can focus on building your brand and selling your services while simplifying the conversion path for your customers.