Private-label products are often preferred to brand name products. Private-label products makes shopping more personal for customers, and often customers come to prefer this. Customer loyalty increases as they become more attached to your brand rather than typical brand name products. Furthermore, consumers often choose private-label products because they are more affordable. Since the quality of private-label products is just as good as that of brand name products and is less expensive, it is no wonder that many customers have come to prefer private labels. In fact, recent studies show that over half the population sees no difference between brand names and private labels.

Just like customers prefer private-label products, so too do the retailers prefer to have private labels in their store. Private labels have a much higher margin than brand names, obviously making them more appealing to retailers. Furthermore, private-label products reduce wholesale prices on that particular item, which helps with competition and allows the retailer to bargain and get better pricing from manufacturers. Because retailers see how private labels benefit their store, many even change prices to help prod their customers towards buying private-label products. They aren’t only attractive to consumers but also to the people who buy the product directly from you.