In contract manufacturing a maker produces goods for another company, which sells them under its own label. A private label is a brand owned by the company that sells it, made by another firm. White label is a standard item many sellers rebrand. Ask a supplier which one they mean.
Chapters
- 0:00 Three terms
- 0:04 Contract manufacturing
- 0:09 Private label
- 0:14 White label
- 0:19 Who else can buy it
- 0:24 Ask which one
Transcript
Full text of the video
- Three terms are often mixed up: contract manufacturing, private label and white label [CMPL, WLG].
- Contract manufacturing: a maker produces goods for another company, which sells them under its own label or brand. The maker handles production (Wikipedia; Xometry) [WCM, XOM, CMPL].
- Private label: a brand that a company owns and sells, even though another firm makes the product (Wikipedia; Racklify) [WPL, RACK, CMPL].
- White label: a ready-made, standard, unbranded item that one manufacturer makes and other companies sell under their own brand names (Wikipedia; Shopify) [WWL, SHOP, WLG].
- White label is offered to several sellers. Private label is made for one client and usually exclusive to that client (Shopify; Wikipedia does not clearly separate the two) [SHOP, WLG].
- Ask any supplier which one they mean before you compare quotes. Terms are typical and are confirmed in your written quote [CMPL].
At a glance
| Fact | Detail | Source |
|---|---|---|
| Contract manufacturing | A maker produces goods for another company, which sells them under its own label or brand | WCM, XOM |
| Private label | A brand owned by the company that sells it, made by another firm | WPL, RACK |
| White label | A standard, unbranded item one manufacturer makes and other companies rebrand | WWL, SHOP |
| Exclusivity | White label is offered to several sellers; private label is made for one client, usually exclusive | SHOP |
| Before you compare quotes | Ask any supplier which one they mean | CMPL |
Questions
What is the difference between private label and white label?
A white label item is a standard product that one manufacturer offers to several sellers, who rebrand it. A private label product is made for one client and is usually exclusive to that client.
Is contract manufacturing the same as private label?
Not exactly. In contract manufacturing a maker produces goods for another company, which sells them under its own label. Private label describes the brand that the selling company owns.
What should I ask a supplier?
Ask which one they mean, whether they make to your specification or add your label to a catalogue item, and whether another buyer can order the same item.