Private Label & White Label on Faire: What You Need to Know

Navigating Retailer Requests & Understanding Pricing for Custom Branding

In the world of wholesale, it’s not uncommon for retailers to approach brands with requests for private label or white label products. These arrangements typically involve rebranding or repackaging your existing products so that they carry the retailer’s branding instead of—or in addition to—yours. But is this allowed on Faire? And if so, how should you approach pricing these custom orders? Let’s break it down.

What Are Private Label and White Label Products?

Private label and white label products are two sides of the same coin. In a private label arrangement, a retailer asks you to create a version of your product that bears their brand. White label, on the other hand, usually refers to a generic product produced by you that can be rebranded and sold by multiple retailers. In both cases, the core product remains similar, but the labeling, packaging, or branding is modified to suit the retailer’s needs.

For many small batch producers on Faire, maintaining your brand identity is crucial. Your products represent your craft, your story, and the trust you’ve built with your customers. So when a retailer asks for a custom branding solution, it’s essential to carefully weigh the benefits against the potential impact on your brand’s integrity.

How Does Faire Handle Private Label/White Label Requests?

According to Madison at Faire, the process is designed to protect the interests of small batch producers like you.

Here’s what you need to know:

“We understand that many of our brands are small batch producers and work hard to have their brand name on their products in retail stores across the country. Therefore, retailers are required to ask permission to make any changes to your product’s labelling or packaging. You’ll need to approve any changes in writing.If you discover your products being rebranded or repackaged without your consent, please let us know here: https://faire.link/07cx4”

This means that while retailers can request private label or white label versions of your products, any modifications must be explicitly approved by you—and in writing. Faire’s policy is clear: your brand’s identity is protected, and you retain the right to control how your products are presented in the market.

Understanding Pricing for Private Label/White Label Orders

When it comes to pricing custom branding orders, there isn’t a one-size-fits-all answer. However, several key factors typically influence the pricing structure:

1. Product Development and Modification Fees

If the changes are minimal—say, just a minor alteration in the label design—you might add a small fee to cover the extra work. However, if the modifications are extensive, consider charging a new product development fee to reflect the additional time, resources, and potential disruption to your standard production process.

2. Artwork/Design Fees

Any custom artwork or new label designs usually come with their own cost. Whether you’re hiring a designer or dedicating your own time, ensure that this expense is factored into the final price.

3. Alteration Fees

Adjustments in packaging or modifications that affect the product’s appearance might require additional production steps. An alteration fee can help cover these incremental costs, ensuring that your profit margins are maintained.

4. "At Cost" Charges

For items like custom packaging materials or short-run label production, you should charge at cost. This means passing the exact expense on to the retailer without compromising your bottom line.

5. Percentage Markup

Many brands opt to add a percentage markup to the standard wholesale price for private label or white label orders. Depending on the complexity of the changes, this markup can typically range from an additional 10% to 30%. The exact percentage should reflect your extra costs and the value added by offering a custom version of your product.

Example Formula:

Custom Price=(Base Wholesale Price+Development Fee+Artwork Fee+Alteration Fee+At Cost Charges)×(1+Markup Percentage)\text{Custom Price} = (\text{Base Wholesale Price} + \text{Development Fee} + \text{Artwork Fee} + \text{Alteration Fee} + \text{At Cost Charges}) \times (1 + \text{Markup Percentage})

For instance, if your base wholesale price is $20, and the combined extra fees total $5, applying a 20% markup would result in:

Custom Price=($20+$5)×1.20=$30\text{Custom Price} = (\$20 + \$5) \times 1.20 = \$30

This formula provides a structured way to calculate pricing while ensuring you cover all additional costs and preserve your margins.

Best Practices for Handling Private Label/White Label Requests

1. Get It in Writing: Always require written approval for any modifications to your product’s labeling or packaging. This documentation protects your brand and ensures that both parties are clear about the agreed-upon changes.

2. Clearly Communicate Pricing: When discussing private label orders with retailers, be upfront about the additional fees involved. Transparency helps build trust and prevents misunderstandings later on.

3. Assess the Impact on Your Brand: Consider how custom branding might affect your brand identity in the marketplace. Ensure that any changes align with your long-term brand strategy before giving your approval.

4. Leverage Faire’s Support: If you encounter any issues with unauthorized rebranding or have concerns about how a private label request is handled, reach out to Faire immediately using the provided link (https://faire.link/07cx4). Faire’s customer support is there to help protect your interests.

5. Review and Update Your Terms Regularly: As your business evolves, periodically review your private label/white label policies and pricing structure. This will help you stay competitive while ensuring that your brand’s value remains intact.

   
   

Private label and white label arrangements can open new avenues for growth, but they must be managed carefully. Faire’s policies ensure that you, as a brand, have the final say over any modifications to your product’s presentation. By understanding the key pricing factors and following best practices, you can confidently navigate these requests while protecting your brand’s integrity and profitability.

Have you had any experience with private label or white label requests on Faire? Share your thoughts and strategies in the comments below!