Private Label vs. Private Brands vs.National Brands

[GSK Resources]

I recently had this in my GSK E-mail Newsletter

Private Label vs. Private Brands vs.National Brands

* Private Label
Pros:
You have total control of your indoor tanning products. You design the labels. You decide on the formulas or which formulas to stock. Your salon is the only one that has that name brand of tanning products. You decide where it is sold. If you want it on the internet then put it on the internet. Private Labeling is all about your individual salon and building your salons brand with unlimited profit possibilities.

Cons:
You have the entire expense of developing the private label indoor tanning products on you.You pay for designing labels, printing labels and the cost of the products. Different private label programs have different upfront investments that vary greatly based on your choices. GSK Resources has worked to make that expense as low as possible so it is affordable option for every salon owner..

* Private Brands
Pros:
Exclusive indoor tanning products with premium packaging but you are splitting the development and production cost with a large group of other salon owners. Meaning your initial investment is low compared to the quality of the product packaging than individualized private label products. You have a protected market area so you have local control of your private brands pricing so you can maximize your profits without worrying about competing salons or the internet

Cons:
With private brands, you do not have much (if any) say in the product formulas and packaging designs of the products you stock. With all private brands, you do have an agreement that controls where you can sell the products while this does offer you protection against diversion and other salons competing with you. Yet, private brands do not have the unlimited opportunity that private label offers salon owners.

* National Brands
Pros:
Choice, there are hundreds of national brands of indoor tanning products. All you have to do is choose and buy. As a salon owner there is no upfront investment in anything. You pick and buy with lots of stocking distributors to play one against another for your best pricing.

Cons:
Everyone else can stock and sell those national brands as well. You are competing with everyone: Internet diversion sites, E-Bay auctions, and every salon in your area. This means your chief competitor can walk into your salon and decide to sell the exact same product line up that you have for 10% less than you. You have no protection against competition that makes your salon different at all from other area tanning salons.