(reprinted by permission)

SHHH! It’s Private!

Independent retailers increase margins with private label merchandise

By Stacey L. Heiss – Marketing Director of Western Exhibitors LLC

Once an option only available to BIG CORPORATE stores purchasing HUGE QUANTITIES of merchandise, technology has now streamlined the process and made it possible for independent retailers to take advantage of Private Label products. Not sure exactly what that means? Private label is essentially product manufactured by one company for offer under another company’s brand (i.e. YOUR STORE). In other words, if one of your store’s top selling catagory is spa products , you can enlist a manufacturer of soap or lotion to bottle it in a specific container, label it with your store’s logo and add, ‘Exclusively Made For _______”. Historically, private label brands have been seen on the consumer radar as the low-cost, low-quality alternative to ‘name brand’ items. This is not the case in the 21st Century. Stores are now using private label merchandise to sell their more expensive, better-quality inventory and increasing their brand and marketing viability. Consumers will flock to a store if it carries a brand they trust.

Why Go Private?

Private label will help the name of your store (essentially your brand) reach a broader audience. Think about it…if you carry prepackaged gourmet food products, ask your supplier if they will package the vinegars, oils, preserves, cookies etc. with your store’s private label. Then put together a ‘hostess gift’ package for the holidays. Every time the recipient brings out one of the items from her gift, your store’s name just received brand status. People will ask where the item came from, family members will request more when the jars are empty, and where will they go – right to your store (you can have exclusivity, and they can’t get it at Safeway). Put your website on the label, and you could go global!

Myths and Facts About Private Label

Myth: I need to purchase thousands of items in order to take advantage of private label merchandise. Not so…many manufacturers have streamlined their distribution and are able to dropship on demand. There will most likely be a ‘set-up’ fee, but once your artwork is stored to the computer, your next order is good to go!

MYTH: My store wouldn’t be appropriate for private label merchandise. Private label covers every catagory spectrum from food and pet items to home decor and auto parts. Any independent retailer can add private label to their mix.

MYTH: Customers will think that my own label means the product is of lower quality. Stores that carry private label sell more of it than the brands. In Europe, 45% of all goods sold in the grocery stores are private label. Think about it…Trader Joe’s shoppers covet and tell their friends about ‘Joe’s Brand’ – private label no longer carries the ‘low quality’ status.

TRUTH: Private label merchandise can be sold at a premium. You bet! You’ve put some exclusivity on a product, and it can only be found in your store – it carries added value.

TRUTH: Private label can help you reach a more ethnic consumer base. If you’re looking for ways to cater to your diverse clientele, private labels can be printed in a variety of languages. How’s that for increasing profitability!

TRUTH: There is ‘star power’ in private label brands. According to an article published by the Private Label Manufacturers Association, 41% of shoppers in the US consider themselves a ‘frequent buyer’ of store brand products.

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Country Meadow Ltd. will soon re-offer private label options for wholesale accounts.

Due to our rebranding we are currently revamping our private label contract.

It is our hope to have our private label requirements and contract finalized by the end of June 2007.

If you are a retail establishment and are interested in a wholesale account please contact us at wholesale@countrymeadowltd.com for wholesale information.

If you are a retail establishment and are interested in private labeling contact us at wholesale@countrymeadowltd.com and we will put you on a signup sheet. Once we have our requirements and contract finalized we will send you an email with the information.

Rebecca

Country Meadow Ltd.

www.countrymeadowltd.com