For distributors who do not currently carry a line of private label products, this uncertain economy is a great time to start one. The first step is to gauge customer interest. It doesn’t make sense to pursue new products if no one will buy them. However, most distributors are finding that end users are interested in purchasing lower-priced products.

With customers on board, the next step is to find a manufacturer to produce the product. Ask for bids from several vendors and ask whether private label products are custom formulations or only duplicated products. Also find out what their order minimums are. If they are high, distributors may find themselves with a lot of inventory taking up space in their warehouses.

Finally, before bringing the products to market, thoroughly test them for performance.