As an entrepreneur, you always thought about offer value to the market by creating a unique identity. While we are living in time with saturated markets and high competition, it is difficult to stand out from the crowd. Now startups are adopting tools and solutions that already exist in other formats.
In simple words companies do not want to spend their time on resources and expertise for specific area. Launch of that product even takes more efforts and time so they purchase White Label solutions for their business. You might have heard this name for the first time or some of you aware of it.
What is White Label?
A single framework which is mass-produced for large customer base. “White Label” refers to the Software or marketing technology created by a third party, you can use labels it as your own brand and sold to your customer. For any business well-rounded an online marketing services professional are required, It took a huge amount of investment. White label can be proven as a cost-effective way to develop products, because you take the assistance of product which developed by someone.
Why business is inclined towards White Label
* Without any Huge amount of investment, you can create a brand with the use of while Label. Just Cut the cost Hire Third-party solutions and label as per your business requirements.
* White Label saves your time, because you rely on third party source code they will take full responsibility for product delivery. You can sit back for task as someone else is trouble shooting for you.
* If you wish to launch the new stream for your business, making use of third party solution will provide you liberty to expand your business within a short period of span.
* While label proven to you as Financially rewarding for your business. You can choose your pricing, margin and earn and earn profit as much as you can.
Before you jump into conclusion to make a purchase for while Label try to look at the other side of the Coin.
How it causes harm to your business
1. Start-ups will not able to deliver vision:
Being an entrepreneur, you need to establish your position in the Market. When you start with white label you could not stand out as an actual vendor of anything that is seemingly so advanced. When you pass your vision and product description of the other software agency and they pass it on to their project manager of the development company who then passes the project to certain teams. In this process your company will lose some important functionality of your business and the agenda will be miscommunicated in the end.
2. Competitive market Is not for your business
Under white Label everyone is offering the same product to customers. Your business is not different from them. You have to keep in mind there are many others out there doing the same. On very first stage you are no more in competition because you may have creative branding strategies for your product, but the customer will only incline toward the product which Is different and standout in Market.
3. Controlled pricing
When you’re selling a vendor’s offering, you cannot go beyond limited price. If you offer discounts and offer you have to leave your profit. When the vendor is in charge of support, you cannot make profits from charging end-customers for support. Pricing will include basic software price total amount and profit margin; the final amount is offered to the customer. Over-the-budget pricing and deadline prolongation, also if you lower down you price then profit is no more. You cannot risk losing money and time when the window of opportunity is so small. Your clients or users may be dissatisfied and go to your competition.
4. Require In-depth knowledge
Your customers will have lots of queries regarding the project. Only in-depth technical knowledge can answer. You need to keep wasting time to search for basic data to find out the technicality of your software. On the other hand, when you choose to develop the software, from basic to technical you know all the particulars.
5. Building the vendor’s brand
When you resell a vendor’s brand, you strengthen their branding. Although this is not necessarily bad, it doesn’t get your name out there as much as with a white-labeled solution. So, it will indirectly harm your business as well. Promoting others brand indirectly gives your customer leverage to promoting their brand over your Business.
Why you should look for more reliable Technology development company?
If you wish to have solution provider for business the process will take longer time than you think. so, you would hire Company to do that work for you. Clients often have some challenging requirement to match that level companies need to be creative and dedicated enough to provide services.
We at XongoLab Technologies, never prefer white label solutions, our vision is to make sure your vision and idea will be able to stand out in the market and you can generate more revenue in Business. Our creative team gives best to deliver end to end reliable services to the clients on individual basis.
Selling private label online needs to handle by some expert. If you could not strategize your business according to products, services, and software to the mark, chances are there you might fail! White Label can be temporary solution for the company, but, you cannot rely completely for your business. The only key for business is you need to invest a suitable amount of time and money for successive road.
Embrace your uniqueness. Time is much too short to be living someone else’s life.