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If managed right, OEM/ROB (Original Equipment Manufacture/Retailer Own Brand) can be a very lucrative and profitable business, however, in most cases, it does involve a commitment in stock, both in depth and, probably, width, so does tie up cash.
Each concept/opportunity needs to be handled differently (I am just starting a niche brand/supplier, where the investment is minimal, but this is not common), however, if a person is already selling reasonable volumes of other merchandise, this does make the opportunity easier.
Own brand merchandise was originally developed as a way for retailers to sell similar products to brands, but get a greater slice of the profit. However, for as many years as I can remember, especially in high ticket markets like electronics, retailers have used them as a way of driving volume/turnover, rather than generating extra profit.
Product & brand develoment has been my bread and butter, in one form or another, for many years, so if anyone needs help, just let me know!
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