EDITOR'S BLOG
Retailing signature sellers
One avenue to making more money is to repackage an item you already make and sell it again in a different format, creating a new revenue stream.
One avenue to making more money is to
repackage an item you already make and sell it again in a different format,
creating a new revenue stream. You probably have a signature item on your menu,
whether it’s a pizza or your secret sauce. More restaurants are turning to
packaging some of their products for home consumption or even for the grocery
store shelves.
This can be a great way to extend your brand,
but it’s also obviously a cost centre. You’d really want to know how many units
would have to be sold to make a profit before diving in. If your motive is more
marketing driven, then calculate what kind of loss you can afford to take. This
is probably a good calculation to do anyway. Branding exercises are a critical
part of growing your business, but they shouldn't be exempt from the bottom line (in the big picture).
That being said, a branded product line has
the potential to be a profitable part of your business. Feel free to send me
any questions you have if you are considering heading down the private label path
and I will do my best to hunt down an answer.
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