Private Label Supply Agreement

Retailers don`t like to buy from many different suppliers, so sometimes when a supplier has a more comprehensive product line, they drop their current supplier in favor of the new one. So, if your product fills a gap in a company`s product line, it will help them get into more retailers and increase sales across the line, not only with your product, but with all of its products. “If you`re going to be there in the long run, you`ll have to consolidate things,” Caseley said. “If you`re a small business, you may be less rigid with contracts, etc., but the best practice is to make a standard agreement with your supply chain because it gives you stability.” One of the dangers of private label marketing is that your product is mixed in the corner.