Pharmacies have their own brands of medicine, home improvement stores carry their own brands of paint, and bars and restaurants offer their own house wine and craft beer. Usually these house brands are merchandised right beside the more recognizable "name" brands that customers are seeking out. Why do businesses do this?
1. Value - By offering a house brand along with name brands, a business is giving their customers a choice. Some customers will want the name brand no matter what, but others will not want to pay the name-brand price. A private label brand gives you a value option for your price-conscious consumers without having to discount. Private label can also be really effective in an industry like ours where customers are looking for expert advice. Many people will order the house wine or craft beer if it's priced $2 less per glass and the server recommends it. That is no different than when a customer asks your staff, “What kind of pump, multi-tool or light do I need?"
2. Price Protection & Better Margins - A house brand that can't be found elsewhere is a great way to combat "showrooming" customers, particularly with parts and accessories that are widely available online. Adding a private label brand with similar specs and stable price points to your P&A mix will give you opportunities to make more margin than if you rely solely on brand name items that are constantly being price shopped.