Private label
Also called private brand, house brand
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is private label?
A private label is a product line made by a manufacturer but sold under the distributor’s own brand name. Distributors use private labels to earn more margin than on national brands and to give price-sensitive customers a cheaper option.
Private label example
A jan/san distributor sells its own brand of trash liners next to a national brand at a lower price. A contract manufacturer makes them, and they earn the distributor more margin per case.
Related terms
- Gross marginGross margin is the share of sales a distributor keeps after paying for the goods it sold: gross margin % = (revenue − COGS) ÷ revenue.
- Category managementCategory management is the practice of running each product category, such as fasteners or janitorial chemicals, as its own business.
- Cooperative (co-op)A cooperative (co-op) is a buying organization owned by its members, typically independent distributors or retailers, who pool purchasing for better terms.
- Line cardA line card is a distributor’s list of the manufacturers and brands it sells, typically shown as a page of logos.
