Quality

Private labels can only be successful if they are a brand of choice. Therefore, offering high-quality products is very important. Customers are looking for availability and reliability. Owners of private labels know that they can prove the worth and integrity of their advice and brand through the quality and value of their products. Far beyond just a first and perhaps single purchase, they are looking for customer loyalty and thus need to ensure that their products are without fault.

Electronic distributors selling private label products are constantly making sure that these products conform to the same certifications as brand products. As is the industry standard, they implement testing and auditing procedures to guarantee their products meet the required standards – whether they are safety standards required by law or internal quality benchmarks. Because the brand’s reputation is on the line, higher quality benchmarks may even ensure more consistent quality than if the products were being sold by the manufacturer itself. This makes it evident that private label products are not just lower quality product lines from manufacturers.

Competitive prices

Perhaps the most obvious selling point for private labels are the competitive prices. But how can private labels offer their products at lower prices without sacrificing quality?

There are two main reasons why electronic distributors can offer low prices on high-quality private label products. Firstly, they usually have good contracts with the manufacturers. Manufacturers produce private label products because this provides a guaranteed and predictable turnover – they can better exploit their production facilities and might even be less affected by market fluctuations.

Secondly, private labels rely on well-established products and don’t usually invest in developing new technologies. Distributors know exactly what their loyal customers want, need and purchase most regularly. You may not find a revolutionary product in the private label product range, but you will find the reliable products you need to develop the next revolutionary application. Components with consistent quality and competitive prices, e.g. capacitors, fuses, semiconductors and relays will help you to develop more prototypes and push your inventions further.

Well-established supply chain management

If there’s one thing electronic distributors have experience with, it’s supply chain management. Private label distributors within the electronics industry benefit from excellent supply chains, maintaining control over development, sourcing, warehousing, distribution, merchandising and marketing of their own-brand products. They follow each product’s journey right from its conception to its delivery to their customers. With complete control over all supply chain procedures, the company ensures that the products are a reflection of the company’s worth and value and are exactly what customers need.

Through this unique retention of control, it is also possible to offer high product availability and hardly ever disappoint customers with stock issues. If anything, private label distributors can offer exclusive products, providing differentiation against other suppliers.