The PowerHouse Alliance will soon launch its first white label line to help its collective of 12 distributors provide more price options and profit margins for integration partners while maintaining product performance quality. To learn more about the A2V line, we reached out to PowerHouse Alliance executive director Dennis Holzer to ask about other goals for the new line.
PowerHouse Alliance executive director Dennis Holzer
What was the motivation behind creating “white label” product lines?
Offering a white label line was an important goal for us to help expand the price point scope of our offerings, while still ensuring dealers quality and control, and more importantly, an option allowing dealers to increase their profit. The PowerHouse Alliance distributor members have also found that many of their dealers want options in addition to branded name products, because it allows them to offer customers alternative options not found online.
White label products come at typically lower prices with increased margins for dealers compared to tier-one consumer-brand products. For our brand, we chose to focus on quality and UL-approved products (where applicable), which also provides good margin to our dealers. We stand behind the quality of our A2V white label product line.
How many different products are represented in the line, covering what product categories?
As the line continues to grow, we’ll end up offering approximately 50 products total. To start, the first products in the A2V line are a full lineup of AV racks and TV mounts. We chose these categories based on where we could provide extreme value to dealers. Going forward, we’ll introduce other custom-focused categories such as speakers, wire, power, and more.
I know of other rep/distributors that have created white label lines, but I’ve never asked what goes into creating these lines. How does one get started with such a process?
The PowerHouse Alliance started the process–the conversation, really– because we continually ask dealers for their needs, and a white label line of accessory products was one of their repeated requests. It was easier to start than we thought. We ended up approaching vendors with whom we had good relationships, and knew were capable of upscale manufacturing. We knew we could trust their buying power and, most importantly, quality and expertise. We also researched and worked with agents from other manufacturing facilities across the U.S. and around the world to source and manufacture additional categories and products. All of the PowerHouse Alliance distributor members were involved in the white label process, from choosing the categories and products, specifying the necessary product features, as well as helping to vote on and pick the logo and official name.
What specific challenges did you face when trying to provide proper, high-quality products for your white label line?
The biggest challenge we faced was making sure that we were constantly involved, from the initial design to product manufacturing. When dealing with outside vendors, it takes lots of consistent communication and follow up, especially when it comes to prototyping, to ensure you get the product as originally specified. Quality was our number-one concern, so we were heavily involved in the manufacturing process all the way through. We’re pleased with the result, we feel that the products are of great quality, smart design, and will serve dealers and their customers well out in the field.
Did you hit all of your goals with the line or are there are products still in the works?
We’ve exceeded our goals for the initial white label line launch, and we’re excited to share updates and additions to the A2V line in the coming months. We’ve taken the important categories into account, followed the long road through production, ensuring quality, and lastly, delivering products our dealers can sell and install with confidence.
Do you have advice for dealers when choosing white label products?
As a dealer, it’s easy to get caught up in purchasing the item with the lowest price tag from a white label line, but take caution in verifying that product quality isn’t compromised as a result. If products are cheap, you will end up paying for it in the end with truck rolls, increased service calls, and dissatisfied customers. Instead, when looking at white label products, research by confirming UL approval, quality materials, a strong warranty, and a supplier who supports their products. When it comes to white label, don’t expect anything less than you would from a consumer-branded product.
