What are private label homes and how to work with them?

Posted May 06, 2021, Category: Business

If you’re reading this article because you don’t know what private label homes means, or because you want to start working with private label homes – we will explain both. Private label business format is a popular way for producers to scale their manufacture and for traders to start a business faster and with less investment. The ecosystem between log cabin suppliers and producers is becoming more and more interlinked and with the rise of private label concept, partnerships have become even more rooted in efficient business processes.

What are private label homes?

Private label homes
Private label homes can be made bespoke, or produced from standard designs.

In essence, private label homes are structures that were produced by a manufacturer, but sold and advertised by a trader or a log homes supplier. Private label homes as a term also refers to the process of log home suppliers attaching their brand name to the log cabins produced by companies like Eurodita. A well-established partnership can help both types of companies focus on their strengths and make investments into their specialties. This gives the log home manufacturers the possibility to focus on production capabilities and design choices while working with multiple sellers, taking orders possibly from all over the world. Meanwhile, this business model gives the log home suppliers the possibility to focus on marketing, sales, customer support and construction without worrying about investment into production

What are the benefits of working with private label homes manufacturers?

Besides already mentioned benefits of companies investing into their strengths, there are also benefits in other areas. Logistics process is one such area. Log home producers usually already have experience handling the logistics of their products, as well as raw material necessary for the manufacturing. It’s much easier to set up a logistics chain to a new log cabins supplier with previous experience. For the supplier, it’s also much more comfortable to use the existing delivery system than to try and find logistics partners and set up the process from scratch.

What are private label homes and how to work with them?
Benefits of private label partnerships can manifest into some beautiful log cabin designs.

Another benefit that both parties gain by using private label model is advertising. Log home traders most often focus on the very end customer – a B2C model of operations. That demands a lot of investment into digital and traditional advertising in order to each the target customer. The budget of a trader dedicated to advertising can be significantly bigger if they don’t need to worry about production costs.

Meanwhile, private label cabin producers have a very different approach to advertising. Working in the B2B format drives the producers to approach potential private label homes buyers directly, or with extremely targeted marketing. The budget necessary is much smaller and approach much more focused. Instead, the producer can focus on expanding their production line and making their processes more efficient.

Overall, the transfer of specializations gives both sides some room to become better at what they do, while also supporting each other. Mutual revenues and profits push both companies towards cooperation, making private label a truly beneficial business model.

How to pick your private label homes portfolio?

If you’re here to consider what private label homes should be in our catalogue, you’ve come to the right place. With our experience, we can point out a couple of aspects to consider before picking the glulam house design:

  1. Research. Before starting your picks, research your location. What is popular and what log house designs are trending. What are the standard sizes and what styles are missing. If you find any gaps in the market, consider filling them in with your selection.
  2. Balance. Make sure your catalogue has a good balance of size options. Start from small glulam log cabins that serve as summerhouses, garden rooms, etc. Follow up with medium size cabins that can serve as a more stable residence. Lastly, always leave some space for large glulam log houses that show the variety and truly endless possibilities for houses built with glulam.
  3. Style. Settle on a style of glulam log homes. This goes toe to toe with good research. Determine whether your location is more interested in classic log cabin designs, or are looking for more contemporary log cabins solutions. It’s also possible to have a balance of both, but often times, the customers of traditional vs contemporary are completely different.

Final thoughts

Choosing a private label homes partner can be difficult at the beginning. Trust is something that’s earned over time. At Eurodita, we enjoy almost three decades of our partner trust and are happy to introduce new players to the private label concept. Reach out to us with potential partnership propositions and let’s talk business!