🏷️ Trademark: 10 New Business Opportunities
A private label is a very profitable marketing tool. Despite the fact that much has been said about trademarks, many still continue to ignore them. Of course, whether it will be used or not is a personal matter for everyone. If you want to figure out whether it is needed or not, then the information below will be very useful.
The first benefit that a private label provides is increased recognition of goods and services, and increased sales volumes. Let's say the sales volume of goods or services without a trademark is 1 million US dollars. After you register a trademark and make very small investments in promotion, it begins to be recognized.
A 50% increase in recognition will lead to an increase in sales by approximately 50%, which will reach 1.5 million US dollars. In order to achieve this effect, it will be necessary to invest approximately 5-10% of the sales volume, i.e. in our case only 50-100 thousand US dollars. As a result, the net income will be 400 thousand US dollars of additional income.
Private label increases sales
The second benefit is that a trademark is able to create consumers and stimulate consumption. The point is that a trademark is a carrier of an idea, either a product or service, or a company. Thus, a trademark is a transmitter of an idea. The idea transmitted by a trademark reaches people and turns them into consumers.
The effectiveness of a trademark in this case is no less than 10%. If the idea has already been implemented in the consumer, then that is also good. Two identical ideas that collide with each other lead to the generation of energy or, in our case, motivation. In other words, if a consumer encounters a product that has a trademark known to him on it, then he will certainly buy it, even if he did not intend to do so.
The effectiveness of a brand in this case is not less than 10%. This means that out of every 10 people, one will buy something. If sales without a brand reach $1 million, then after using a private label, they will reach $1.1 million, which will bring in an additional $100,000.
Private label brings profit
We have already received half a million US dollars from using the trademark and we can receive more, because there is a third benefit from using it. It is that your own trademark influences the consumer's choice and motivates him to buy your product or service, and not your competitors. In 90% of cases, the consumer will prefer a product with a well-known trademark.
Accordingly, the piggy bank will be filled with 600 thousand US dollars. If you use your own trademark, this means that in 9 cases out of 10 your product will be the winner in the fight for the consumer. Due to this, you can put at least another 100 thousand US dollars in your pocket, if the sales volume is a million US dollars. Accordingly, the piggy bank will be filled with 600 thousand US dollars.
However, this is not all, because there is a fourth benefit from a trademark. It consists in the fact that when using it, you can set prices at least 10% higher than if the trademark is not used. In addition, the effectiveness of advertising increases significantly if a trademark is used. Generally speaking, without a trademark, advertising almost does not work. A practicing marketer knows this well.
Private label protects investments
A private label is a great tool for protecting your marketing, advertising and branding investments. If it is not used, the clients you create with your own money may go to your competitors. In addition to increasing the effectiveness of advertising, a private label also allows you to use such an effective tool as a slogan.
If you don't have a trademark, you won't be able to get government protection for your products. The last three listed benefits of using a trademark are worth at least $100,000 each, which means that the total is $900,000. If you don't have a trademark, you won't be able to create such an important asset as a group of brand followers, in other words, you won't be able to get fans.
If you do not have a trademark, you will not be able to get protection for your goods from the state. If you do not have a trademark, you will not be able to create your own personal market and get rid of competitors. The level of trust in goods without a trademark is quite low. Accordingly, having a trademark, you can get more money for all the listed points.
How to Make Money with a Trademark
A consumer group will save you at least $10 per person because you won't have to spend money on creating them. Protection from the state will save you the trouble of fighting counterfeits. Your own market is a fairy tale. You can earn many millions of US dollars here with virtually no investment.
Own trade mark is an opportunity to earn money and everyone can do it. The most important advantage of a trade mark is that the money spent on advertising does not evaporate. It accumulates in the trade mark through the growth of its value. For all the listed points, the real benefit in our case can be at least 2-3 million US dollars and this suggests that having a trade mark is profitable, it allows you to start a profitable business.