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Overview Transcript Case Study Video
Luis gives us a lesson about Private labels
Luis gives us a lesson about Private Labels.
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Increase Profit Margins
With Private Labels
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HATTIE: All right. Talk to me. How many products are you putting your own labels on?

LUIS: I believe right now we have about 3,000 products.

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Transcript Segments
Small Business School
1. Small Business School Do What You Know
2. Do A Lot With A Little
3. Pour Your Earnings Into The Future
4. Speak Your Customer's Language
5. Hire People Who Want To Move Up
6. Inspect What You Expect
7. Change To Meet Demand
8. Increase Profit Margins With Private Labels
9. Enroll The Next Generation In The School of Hard Knocks
10. Put Others Ahead Of Yourself
11. Be A Team Player
12. Develop Core Beliefs
13. Use Technology To Dazzle Customers
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HATTIE: How big did you have to get before that became doable?

LUIS: You've got to have a certain amount of sales. These manufacturers don't want to put your... They don't want to spend money on the labels, on the package unless you can buy a certain amount of product. So I think we were where we had, like, probably seven stores, it was when we were able to get started with the store product label...

HATTIE: So you get more margin on this.

LUIS: Right.

HATTIE: So, of course, that's the motivation.

LUIS: Right. That's what we try to sell. And we've been able to--since all these generic and private label products are now so popular, you get so many companies that are doing the manufacturing that the quality has really changed from the quality that it was back in the '70s.

HATTIE: Has it gone up or down?

LUIS: Better.

HATTIE: The quality's up?

LUIS: A lot better. A lot better.

HATTIE: So you're really proud of this product.

LUIS: Oh, yeah. Yeah. And in every category, most--I would say 80 percent of the categories that you look at--and you look at the movement of the products--our private label has become, like, the number one seller in most of the categories.

HATTIE: Really?

LUIS: Yeah. And then the national brands will go below that.

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