27 May 2005

Own Branding (Part III)

Advantages of Own Branding for Suppliers:

Excess production capacity can be utilised
Own brands help absorb fixed costs
The retailer has an equal interest in selling the goods
Some warranty liabilities may transfer to the retailers

Disadvantages of Own Branding for Suppliers:

Advantages may be short-lived
Own brands may reduce sales of manufacturer's brands in the same store
Retailers may restrict display and promotion of manufacturer brands to emphasise own brands
Bargaining power is lost as the retailer can usually switch to alternative channels of supply

If anyone would like further examples of the advantages and disadvantages of supplying own brands for retailers, please let me know either via comments or email, and i would do my best to post them as soon as possible.

39 comments:

Aay Dee said...

hi ahsan... instructive blog.

Ahsan Kaleem said...

Thankyou "aay dee" for your encouragement.

I am doing my best to post as much information as i possibly could on as many topics as i could find.

A number of posts are in draft stages so please keep visiting this blog, and it would be nice of you to promote the blog.

Thankyou once again.

Natwho said...

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Ahsan Kaleem said...

Nice site "Natwho"...

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natwhoed said...

I was Natwhoed
This is in response to the so called business opportunity offered from NWC (National Wholesale Company) and Natwho. I bought in to one of their website leases 2 years ago. They claimed it was an excellent opportunity to start a small business and earn money selling electronic products online. They also claimed to offer me these products at wholesale prices.
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I still have nearly a year to go on my lease.
Now I'm not saying someone isn't making money with NWC. It just isn't me for sure. As for other people with NWC websites I cannot say weather they had any profits or not. Every NWC site owner I have contacted has not responed. I've tried my hardest to sell their products to family, friends, co-workers, and have used mass email but no takers. It's not like I haven't tried.
So, you may want to investigate before you sign a lease. Think it over real good. Compare their wholesale prices with other sites, get a detailed expense sheet of all the services that apply to the lease, and make sure you get what is promised.
My site can be seen at http://www.techdepot.ecxsites.com check it out.

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