Retailing is a neccessary evil for spa businesses. But revenues don’t always equal profit, and it may be time to look for some margin leverage and some exclusivity in the marketplace via your own private label brand?
Private label products have become more prevalent in the marketplace and requires a well-thought-out strategy. Your products should be connected to the vision and mission of your spa, perhaps including a signature aroma or using packaging with messaging consistent with your spa’s philosophy.
A common misconception about private label is that it will involve research, chemists, long lead times, and a whole lotta money. However, as with Scandle’s Private Label Program, nothing could be farther from the truth! Sure, you could spend money on developing amazing products, but many companies that offer private label have a wide array of stock formulations or can tweak existing formulas (i.e. if your spa utilizes a signature aroma, those can easily be incorporated into a private label lotion candle).
Here’s a list of important questions to ask ask if your thinking about private labeling:
1.) What are your minimums?
2.) What are my options for packaging, product, and label customization?
3.) What kind of customer support is available?
4.) What kind of marketing support are provided?
5.) How log have the products been on the market?
6.) What is the top selling fragrance?
7.) Can I speak to any active customers?
8.) Do you offer help/advice on logo and label development/design?
Increasing your spa branding, image, and value are all benefits big benefits of a private label line. Although many owners hesitate selling a product without instant name recognition, private branding can be equally successful and significantly more profitable in the long run!