alpha117 wrote: ↑Mon May 20, 2024 8:36 pm

Stylesjl wrote: ↑Mon May 20, 2024 8:13 pm I don't think there is a difference between labelling in a warehouse and a store. I think it is just a different name for the same thing.

Basically the idea of Private Labelling is that when you purchase a product it will have a brand rating, which can be increased via advertising. A private label changes the brand rating of that product from one company to your company so that if you advertise you aren't giving your competitor's products free advertising.

For example without a private label if you buy stuff from a seaport it will have no brand, but if you advertise it in the store the brand goes up. However everyone who buys from the seaport will get that brand benefit. However if you stick a private label on the seaport goods then you get all the benefits of a brand rating and everyone else that buys from the seaport has to pay for their own advertising or sell it with no brand benefits.

Brand rating does not matter for raw materials (like Timber), crops (like Wheat) or semi-products (like Steel) as the rating for these are only determined by price and quality, so it would be a waste of money to advertise those products. The basic reasoning is that these are not being sold to the public (only other companies) so there is no point advertising it.

Many thanks....understand better now...BUT do you have to 'label' a product IF you control the full supply chain form raw materials to store? Would the product already be you 'own labelled' brand?

Thanks

Stylesjl wrote: ↑Mon May 20, 2024 8:13 pm I don't think there is a difference between labelling in a warehouse and a store. I think it is just a different name for the same thing.

Basically the idea of Private Labelling is that when you purchase a product it will have a brand rating, which can be increased via advertising. A private label changes the brand rating of that product from one company to your company so that if you advertise you aren't giving your competitor's products free advertising.

For example without a private label if you buy stuff from a seaport it will have no brand, but if you advertise it in the store the brand goes up. However everyone who buys from the seaport will get that brand benefit. However if you stick a private label on the seaport goods then you get all the benefits of a brand rating and everyone else that buys from the seaport has to pay for their own advertising or sell it with no brand benefits.

Brand rating does not matter for raw materials (like Timber), crops (like Wheat) or semi-products (like Steel) as the rating for these are only determined by price and quality, so it would be a waste of money to advertise those products. The basic reasoning is that these are not being sold to the public (only other companies) so there is no point advertising it.