Private label windows: how the margin really works

Private label in the window sector has existed for decades, but the conversation about real margin is almost always vague. Retailers and window fitters who ask us for information are often unclear on one precise point: what actually changes, in concrete economic terms, between buying from a manufacturer under my own label versus buying from a middleman under theirs?

This post answers that question — with numbers, cost structures, and the conditions under which the choice makes sense or doesn’t. It isn’t a sales pitch to talk you into private label manufacturing: it’s a guide to help you assess whether the model fits your case.

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Cost structure: manufacturer vs middleman

When you buy a window from a wholesaler or a catalogue brand, you’re paying at least two stacked margins:

1. The manufacturer’s margin — on raw materials, processing, quality control
2. The distributor’s/middleman’s margin — on logistics, stock, sales, brand

A mid-range PVC window, 5-chamber system, low-emissivity double glazing, 100×120 cm window:

Item	Order of magnitude
Real production cost (direct manufacturer)	€80–110
Price to the middleman (+ manufacturer’s margin)	€120–150
Intermediate list price to you (+ distributor’s margin)	€170–220
Your final selling price	€350–500

Note: these figures are purely indicative, built on typical 2025-2026 market logic. They are not LMT’s price list nor a market certification — they vary considerably by climate zone, glass configuration, finishes and order volume.

The point isn’t the absolute numbers. The point is the logic: every level of intermediation adds a percentage margin on the same base. On a job of 50 windows at €400 each (€20,000 final revenue), the difference between buying at €170 or at €110 per unit is €3,000 of extra gross margin — without doing anything different on the sales side.

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What private label gives you control over

Private label / contract manufacturing gives you a level of control that a normal supplier-retailer relationship doesn’t guarantee.

Brand and commercial identity

The product goes out under your company name, your logo, your label. The end customer doesn’t know who physically manufactured it: they just know it’s your product. This has value in two specific situations:

• You already have a local reputation and want the product to reinforce it, not dilute it with third-party brands
• You want to protect your customer from online comparison — if your customer can find the same product on three sites at three different prices, your margin is permanently under pressure

Finishes and configuration

Made-to-order production means you define the specification: profile, RAL colour, glass type, hardware, non-standard sizes. You’re not tied to the distributor’s catalogues. If your local market mainly asks for anthracite RAL 7016 with acoustic glass, you put it in the specification and get consistency across your range — without having to piece together specs from multiple suppliers.

Commercial warranty

This is a point that’s often underestimated. With private label, you offer the commercial warranty, on the terms you decide. You’re not tied to the manufacturer’s policies towards the end consumer. You can offer 5 years instead of 2, and manage the after-sales relationship on your own terms. The manufacturer answers to you for manufacturing defects; you answer to the customer with your own standard.

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Confidentiality: how it works in practice

One of the legitimate concerns of anyone evaluating private label manufacturing is: will the manufacturer know everything about my customers?

The correct confidentiality model works like this:

• You give the manufacturer only the technical specifications of the order (measurements, finishes, volumes, general geographic destination)
• The manufacturer doesn’t know the identity of your end customer, nor the prices you charge
• No reference to the manufacturer appears on the product: labels, accompanying documentation and declarations of performance are all under your brand

Commercial confidentiality is part of the agreement, not an option. Before starting any supply arrangement, it’s reasonable to formalise it in an NDA or a specific clause in the supply contract. A serious manufacturer won’t have a problem signing one.

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Worked example of margin on a typical job

Let’s take a concrete job — figures purely for illustration, not an LMT price list: 80 m² flat renovation, climate zone D, 12 windows + 2 French doors, 5-chamber PVC system, low-emissivity double glazing 4-16-4 Ar, single-face anthracite finish.

Cost scenario (buying from a traditional middleman)

Item	Cost
14 windows from intermediate supplier (average €195)	€2,730
Transport + packaging	€180
Installation (estimated, out of scope here)	—
Total material cost	€2,910
Final selling price to customer (average €420 per unit)	€5,880
Gross margin	€2,970 (50.5%)

Cost scenario (direct private label production)

Item	Cost
14 windows from direct manufacturer (average €125)	€1,750
Transport + packaging	€180
Total material cost	€1,930
Final selling price to customer (unchanged)	€5,880
Gross margin	€3,950 (67.2%)

Difference: +€980 on a single job worth €5,880 in revenue, without changing anything in the relationship with the customer.

These numbers use deliberately conservative assumptions on production price. In reality, the differential depends on order volume, the profile system chosen and the complexity of the finishes. On recurring volumes (e.g. 50+ units/month) the direct manufacturer sets a dedicated price list that lowers the cost base further still.

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Risks of private label and how to manage them

No commercial model is without risk. Private label has specific risks worth naming.

Quality risk

If the manufacturer produces poorly, the problem lands on your brand. The end customer doesn’t know the manufacturer: they know you. Mitigation: work with manufacturers who use certified profile systems (e.g. Salamander with CE marking across all systems), who allow you to pre-sample, and who have a local point of contact able to handle complaints operationally. The detail of the Salamander GreenEvolution and BlueEvolution systems is relevant here: the quality of the profile system is the starting point.

Production continuity risk

You depend on a single manufacturer. If they run into supply or capacity problems, you have delays to explain to the customer. Mitigation: check that the manufacturer has their own plant (rather than being a middleman themselves) and capacity adequate to your volumes. Owning the plant means direct control over the line and manageable timescales — unlike a manufacturer who subcontracts in turn. The page on production criteria and manufacturing capacity details how this translates in practice.

Minimum volume risk

Some manufacturers impose minimum order quantities that make the model uneconomical for occasional jobs. Before setting up a private label relationship, check the flexibility on minimums — especially in the early stages while you’re still gauging your volumes.

Reverse reputational risk

If the manufacturer is identified (CE labels, site inspections, a curious customer), you might lose the “it’s my own product” narrative. This isn’t a serious risk if handled with transparency: presenting it as “we manufacture with an exclusive partner plant” is commercially acceptable. But it needs thinking through.

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When it’s worth it / when it isn’t

It’s worth it if:

• You have recurring volumes or large enough jobs to justify the relationship and the sampling process. A single window isn’t a private label case.
• You want to protect your margin from online price competition. If your competitors sell the same profiles from the same distributor, you’re always exposed to comparison. With private label, there’s no direct comparison.
• You already have a reputation and want to capitalise on it in the product. Your name has value in the local market: put it on the product.
• You want to offer a customised range that the wholesaler’s standard catalogue doesn’t cover (particular finishes, non-standard sizes, specific glass configurations).
• You’re a building contractor or general contractor with repeat supply needs on site: a fixed specification with one manufacturer is more efficient than n one-off orders from n suppliers.

It isn’t worth it if:

• You’re still in a start-up phase and don’t have predictable volumes. The risk of being left with samples and agreements but no follow-on orders is real.
• Your target market is entirely price-driven and the customer wouldn’t value your brand. In some contexts brand makes no difference: whoever costs least wins the sale.
• You don’t have the sales structure to handle the warranty yourself. Private label puts you on the front line: if you don’t have an after-sales process, it’s a problem that shows up on your brand.
• You want maximum range flexibility with no volume commitment. A traditional wholesaler with a fixed catalogue is more suited if you buy anthracite one time, white the next, aluminium after that, with no continuity logic.

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FAQ

Q: How long does it take to set up a private label relationship from scratch?

It depends on how complex the specification is. For a standard range (one or two systems, basic finishes, typical sizes) it typically takes 2-4 weeks from first contact: sampling, validation, first order. On complex specifications (custom finishes, RC2/RC3 hardware, special shapes), as a rough estimate, it runs to 4-8 weeks. It’s not a signature and off you go: a sampling and confirmation cycle is needed before production runs at full speed.

Q: Do I need a fixed monthly minimum?

There’s no universal answer: it depends on the manufacturer. Some impose a rigid monthly minimum, others handle individual site jobs. The key variable is whether you want a dedicated price list (which typically comes with a minimum) or to access standard terms. It’s worth discussing before signing any agreement.

Q: Can the manufacturer contact my customers directly?

In a correctly set up private label relationship, no. The manufacturer knows only the technical production specifications, not the identity of the end customer. Commercial confidentiality is formalised contractually. If a manufacturer isn’t willing to sign an NDA on this point, that’s a signal worth taking seriously.

Q: How do I handle the Declaration of Performance (DoP) and CE marking if the product carries my brand?

CE marking and the DoP (EU Regulation 305/2011) relate to the technical certification of the window. There’s a point that’s often underestimated: Article 15 of the CPR considers anyone who places a product on the market under their own name or brand to be the manufacturer — so selling under your own brand can mean taking on certification and liability obligations, not just commercial ones. In practice the technical DoP remains tied to the physical manufacturer and the profile system, while your name is commercial communication; but the exact split of responsibilities needs to be defined in the supply contract, checked with a legal adviser. Don’t take it for granted.

Q: Is it worth it for a single major renovation or only for ongoing supply?

For a single large job (e.g. an 80-100 window apartment block) it can be worth setting up the private label relationship even without any intention of continuing: the saving on material cost for that job alone can more than cover the setup time. For isolated jobs of 10-15 units, the calculation is less favourable unless you already have an active relationship.

Q: What’s the practical difference between private label and wholesale purchase under the manufacturer’s brand?

In private label the product goes out under your brand, with no reference to the manufacturer. The entry price is the production price. In wholesale purchase, you buy under the manufacturer’s (or distributor’s) brand with volume discounts, but the product remains identified. The choice depends on how much you want to protect the brand and the customer relationship. Some businesses run both models in parallel: private label on the main range, wholesale purchase to fill out the range on types not covered by the fixed specification.

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In summary

Private label / contract manufacturing is a margin tool, not a volume tool. The goal isn’t to sell more, it’s to keep a larger share of what you already sell. For a retailer or window fitter with recurring volumes and a local reputation to defend, the model makes concrete economic sense — as the numbers in the example above also show.

The structure works best when there’s a manufacturer with their own plant, direct management and certified systems behind them: fewer intermediaries, fewer variables out of your control, more margin staying in your accounts.

To work out whether the model fits your specific case — volumes, range, local market — the starting point is the dedicated page on private label and contract manufacturing.

If instead your interest is wholesale supply under the LMT brand without private label, you’ll find the terms on wholesale supply.