Not too long ago I thought that every “brand” was supported with their own factory and an army of employees.
I was wrong.
In fact, nowadays a lot of “brands” buy their products from a factory overseas, put their name on it, then call it their own. Not every company out there invests heavily in production, R&D, etc. – sometimes there’s simply no need.
I mentioned before that I’d seen a really interesting post on Reddit – I was so impressed that I thought it warranted its own conversation.
Essentially, the post said that all you need to build your own brand is a little imagination, a little money, and a lot of drive and ambition to put your brand on the map.
I’m not going to regurgitate the Reddit post because it’s comprehensive enough in its own right – it shows you how to start branding generic products that you buy from sites like Alibaba and Aliexpress.
If that isn’t enough to get your creative juices flowing, I want to go over five reasons why it’s a great idea to build your own brand instead of just reselling someone else’s products.
Building your own brand means having control
When you’re stuck buying stock from other brands to resell on your own website, you’re not in control. You’re paying the prices they dictate, on their terms, and you’re generally constrained in what you can do in every single respect.
When you start your own brand, you have control – if you’re sourcing directly from a factory you can afford to drop prices to undercut competitors while still making large margins. You decide what the product looks like, what your branding looks like, where the brand goes in the future – it’s your baby!
Selling other people’s products can look like an easy option to becoming rich, but in a lot of cases you wind up competing against other companies selling the exact same products. It’s not easy. Starting your own brand isn’t easy either – but it gives you a great deal more control to decide how you want your business to pan out.
Limit the competition
Let’s say for example that I sell Beats headphones. I have to compete against a lot of big names also selling Beats headphones.
Some of those companies may be able to undercut me because they buy them in bulk at a cheaper price – I may even be crowded out of the market altogether; or worse, I may get cut off by Beats because the big guys complained about me.
Beats is a hugely popular brand, and there’s no way a one man band is going to make a serious dent in the Beats market as a whole – it’d take a lot of time and a lot of money to do so.
So, let’s pretend I launch my own brand of headphones called Nick’s Brilliant Headphones. I’ll still be competing against other companies making and branding headphones, but I’ll be the only person in the world selling Nick’s Brilliant Headphones.
Providing I brand them properly and the company gets a good reputation, the sky is very much the limit. I’m building goodwill with my own brand instead of just peddling someone else’s. And who knows… with some good reviews under my belt, I could be on my way to the TOP!
Success starts small
There is a popular saying here in the UK: “Mighty oaks from little acorns grow.” I think it’s fitting for this blog post.
It doesn’t matter if you start out selling water bottles imported from China, then rebrand them in your living room. Steve Jobs started building computers in a garage – Amazon started in a garage too.
Even the biggest brands reflect on their most humble beginnings – there’s no telling how far you’ll be able to take your brand once you get into the swing of things.
You could be importing en-masse from China this year, and building your very own factory in five or ten years’ time. As your brand reaches more people, provided your products are as good as you claim, it’ll gain recognition and loyalty.
Importing things from Asia and slapping your own name on them may seem primitive, but it’s the first stepping-stone to achieving success and owning your very own brand.
Become the distributor of your own brand
So today it’s you approaching Dre Beats to resell their products.
Imagine if instead, people approached you to sell your product!
Whether that’s other online sellers or brick and mortar stores, it’s great to have someone come along wishing to buy your products in bulk. Why endure the burden of selling to end customers all by yourself?
If someone wants to buy in bulk from you then let them! You still get a cut of every sale, and it offers your brand even more exposure. You can go from begging other brands to let you work with them, to the person whose products everyone else wants to stock.
I know various companies whose products are stocked in brick and mortar stores – and they all tell me it’s a cushy little number. No matter how much marketing you do online, there’s still way more demand offline – and there’s always people who leave things until the last minute and have no option but to go and buy the product in a brick and mortar store, instead of waiting a few days for it to be delivered.
MAKE MORE PROFIT
The more middlemen in a retail business, the lower the profit potential. If you start your own brand and sell it online, the only costs you’ll be paying are directly to the factory. If you resell products from an existing brand then you pay a wholesale fee to them, which covers their margin, on top of the cost of the product.
When so many sales are won based solely on price, it makes sense to drive down the price you charge for products as much as possible. With that in mind, why make it harder on yourself? Why sell name-branded products if you can import your own and brand them something unique?
You can then afford to undercut other sellers of similar products, while still maintaining a great margin.
There are many merits to selling other people’s products – but if you have the time, determination and drive to start and build your own brand, then the advantages really do speak for themselves.
Why exert effort and time plugging someone else’s brand or products when you could be promoting your own?
Have your own thoughts on building a brand? Share them in the comments!