White Label or Private Label, what’s the difference?

White Label versus Private Label, what's the difference?

Private Label and White Label are often used as synonyms. Even though their meaning is slightly different, we understand the fact if you’ve mistaken those terms in the past. It will all be clear when you’ve fully read this topic.

Private Label
Private Label products can be bought from the manufacturer and sold under the buyers’ own brand. These products were specially made for exclusive sales by a particular buyer. The Private Label product is fully modifiable. This is necessary to create your own brand. In the past, a low price was always related to a lowered quality. Nowadays, this isn’t completely true anymore as they need to fit the same market standards as the traditional and big brands to be sold.

White Label 
A White Label brand is a generic product or service that is distributed to a lot of resellers. The manufacturer allows the reseller to market the product with their own brand name. It seems like the true manufacturer is on the losing side here because the end-user has no clue it’s the manufacturers' product. It actually has many advantages for the manufacturer as he’s able to focus on what matters. Production.

The phrase “powered by” is often used in the white label scene. This to protect the White Label client from any liability. It also brings a bit of recognition and awareness for the actual manufacturer.

Differences

• Exclusive vs. Unexclusive
  Exclusive: A Private Label enjoys exclusiveness in the particular product he bought from the manufacturer. He’s allowed to modify and add features to the products.
  Unexclusive: The White Label reseller cannot alter the product he has purchased from the manufacturer. He may only sell the same product or service but with its own branding.

• Product or service
  Product: Private Label is connected to physical goods and products.
  Service:  White Label is more connected with non-physical goods like software or services. The software or service is distributed to resellers who resell it. They're only allowed to change the brand name.

The Coupontools software White Label option
Coupontools is offering a white label option in their software package. To use the Coupontools platform, you have to pay a monthly fee. At the platform, you’ll be able to create, distribute, and validate coupons securely. You’ll be able to rebrand the platform to your own taste. You can resell our platform, but you may only change the platform's look and feel and brand name. So you can’t change the features yourself.  We update our platform regularly with new features, and whenever you face problems, you can rely on enhanced support from the experienced Coupontools team.      

Bottom line
The difference between Private Label and White Label is clear now. Private Label is an exclusive product or physical good for a unique reseller, while White Label is software or services rebranded by the reseller.  

Click here to find out what the White Label options of the Coupontools Promotion Management Platform are.
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