Riverhouse, first off, your stuff looks absolutely delicious! I checked out your site, looks really great!
I find my circumstances very similar to yours. We have a line of dip mixes. We started out at local craft shows here in Michigan and have branched out to bordering states. We have built quite a following and people are looking for us by our packaging. I have had suggestions to alter it and I am hesitant. My problem is that we are having trouble breaking down the barriers to get outside our general region where people have not tried our products. I am struggling with what sets us apart from the other gazillion dip sellers out there. We have picked up several retail outlets in other states which has been huge for us and I hope will help to get us into new market areas, pray is more like it.
In any case, in regards to the private labeling, I have gone ahead and done this. I have asked that the seller submit their design and a sample and with my approval, they may proceed. In the instances that I have participated in this, I am selling unlabeled product and they are labeling it. I would guess that some sellers want you to create and label it for them under their name. This was a plus for me in that I don`t have to pay for the labeling or the time to label and they didn`t request any discount for this, they just want to sell the product. In regards to "creating my own competition", I talked myself right into believing an account is an account, as long as my stuff is in the package, it doesn`t matter whose name is on it, show me the money! I will be looking up the broadcast and seeing what they have to say, but for the time being, this has allowed me to keep several very lucrative accounts happy!