How much do you know about canned beans and what does it have to do with the cloud?
The growth of cloud-based services has seen a dramatic increase in white label product offerings. It’s easy to understand why. You’re a provider who has a relationship with customers. You can increase your value to them—and revenue from them—by offering more products through that established pipeline.
But what happens if your business doesn’t have the resources or expertise to develop that pipeline of products? The answer is typically to white label another company’s offering and then brand it as your own.
White labeling has been around for a long time and its name comes from the image of a plain label on a product made by one company, with the logo of the company rebranding that product placed on the “white label”.
We talked in an earlier blog about how it can make sense to side-step all of the expense that goes into creating a product from scratch. It can save money, be a valuable strategy in terms of time to market, and enable a company to rapidly expand its product portfolio.
Where it can fall apart is the ability to get technical support and continued innovation from the company rebranding the offering. The truth is, it is not inherently a bad strategy, but the company which rebrands a product or service must be very, very careful who they choose to be their OEM provider. If you buy service from that rebranding company – you should do your due diligence on their supplier as well.
Pass the beans please
There’s a company in Minnesota that has been canning beans and other vegetables since 1895. They own several popular canned bean names, but they also can beans for Del Monte under the S&W label, as well as K.C. Masterpiece beans for the Clorox Corporation. And they’re the sole US canner of Old El Paso refried beans for General Mills.
These three corporations have combined annual revenues of over $26 billion. They trust the company with their respective proprietary recipes. Del Monte, Clorox, and General Mills don’t go out of their way to promote that the popular canned bean brands they own are manufactured for them by a canning company that actually even owns a collection of private label brands that compete directly with theirs.
But they did their due diligence and chose that partner carefully.
Taking care of the customer
White labeling has become more commonplace as more companies turn their focus toward their core competencies. They’re focusing attention and resources on what they do best, and they’re making sure they establish that value proposition with customers.
With their base established, they then carefully search for opportunities to offer complementary products and services. Once the opportunities are identified, they seek out white label solutions.
For the most part, customers aren’t that concerned whether their canned beans are made by the company whose name is on the label. What they’re purchasing is the expectation of taste and performance based on reputation.
But this isn’t canned beans – it’s high-tech
Where it gets dicey is when you are dealing in high-tech.
- Can your supplier react quickly when you need them to, or do they have to go back to the OEM provider of the actual platform?
- What if you need a solution which demands some out-of-the-box thinking or some level of customization?
- How does your provider ensure a constant stream of innovation in a high-tech world which is moving lightning fast?
At nexVortex we built, own, and operate our service delivery platform. We don’t need to go back to anyone for help. Our core competency is cloud communications with a special focus on SIP Trunking, Managed SIP Trunking, and Hosted Voice Services. We can move, we can innovate, and if there are problems, we can find and fix them – fast.
Our team – from development, to customer care, to network operations, is certified in the key technology areas important to those service delivery platforms and we are adamant about keeping them trained and current. nexVortex was a pioneer in cloud communications and has been delivering commercial service for 12 years. We call it Uncommon Know-How.
Let us bring our Uncommon Know-How to bear for you and for your cloud communication needs. Contact us today.