Indie Retailing 101: What is Private Label?

What are Private Label Products?

• Private label products are taking an existing product, like BIC lighters or rolling papers, and putting your brand name on them.

• By doing this, you effectively create and sell your own product.

Why are They Valuable?

• By placing your brand on popular, trusted products, that trust transfers to your brand and offers another touch point with your consumers long after the original purchase is done.

• Every time that lighter is flicked, papers are rolled with, or a 510 battery is connected to a new cartridge, your brand is seen, used, and experienced.

• If well designed, these branded products can be coveted by your consumer base and are shared organically, marketing on your behalf.

How Can This Add to Your Profit Line?

• Branded offerings can have gross margins of 50-65%, significantly higher than Cannabis products.

• Core products like rolling papers and lighters are on the higher end, around 60-65%.

• Branded accessories can impact your bottom line in a significant way:

1. Adding a branded lighter to a Cannabis sale adds $1.00 of profit, but over 700 transactions this translates into $700 in addition profit per month.

2. Adding a 510 battery to a Cannabis sale adds $10.00 of profit, but over 700 transactions this translates into $7,000 in addition profit per month.