Importance of Proprietary Product Lines and Brands to the Business

Proprietary Product Lines and Brands Help a Company!

Proprietary product lines and brands provide a business with complete ownership and control over their product lines and brands. A business with proprietary lines and brands controls the product’s price, quality, branding, and image in distribution. With proprietary product lines and brands the business controls distributor’s sales and marketing strategies and helps distributor build brand awareness.

Proprietary product lines and brands provide increased gross margins and improved profitability for the business and helps to develop and utilize distribution channels to grow their established sales and marketing channels with limited additional effort and expense to increase both their new and existing customers. Leveraging existing sales personnel, catalogs, websites, and advertising to support proprietary products and brands helps cover fixed and variable overhead costs, which improves profitability. In addition, the business with specialized proprietary product lines and brands is more insulated from the competition.

As the business is the sole source for the specialized products and brands, the business controls the distribution channel making the opportunity to sell its products and brands a right provided to the distributor versus an entitlement the distributor believes they have to sell to a customer. The business that has proprietary product lines and brands realizes higher gross margins, higher pretax net operating income, and ultimately, a higher value for the business.

The Siburg Company specializes in buy-side and sell-side mergers and acquisitions, and strategic planning consulting services.

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