Jul 14, 2022
Written By:
Aryel Wilbur
You’ve made the exciting decision to launch your private label (PL) supplement line and now need to find the manufacturer who will suit your vision best. Maybe you already have a private label business and are on the market for a new provider. Whatever the case, there are several key factors to consider when choosing the best company for your needs.
Private labeling supplements was far more straightforward in the past, mostly reserved for practicing doctors and other healthcare providers. Today, more business-minded people have realized the profitability of PL supplements. The influx of demand for PL supplements has led to a growing number of manufacturers that vary widely in product and service quality.
If you’re new to private labeling, it’s essential to partner with a provider that can help you feel confident that it’s the right time to launch your business. Whether you’re a new or seasoned PL vendor, looking for a manufacturer that caters to your company’s goals and your customers’ needs is fundamental to your success.
Private labeling means putting your brand on existing nutritional supplement formulas with legal permission from their provider. It’s a win-win for healthcare practitioners, entrepreneurs, and consumers, as buyers get a high-quality supplement and sellers benefit from lucrative revenue opportunities.
Before choosing a manufacturer, speak with several providers to get professional opinions on whether your business is likely to succeed with private label supplements. These opinions can help guide the best way for you to begin—a good private label manufacturer should be able to honestly assess whether or not this is the right time and strategize a game plan.
As a healthcare provider, you can test your patient's appetite for certain supplements by offering generic brands and tracking how they sell. If you already have an established practice, you can start by choosing two or three products that already sell well and private label those. If you’re an eCommerce vendor, you’ll need to do your due diligence by researching the competition and marketing your products creatively and strategically.
If you’re just starting your private label brand, choosing a company that offers low order minimums is important. In general, taking advantage of a supplier's low order minimum is a good way to gauge the success of certain products and sales. You'll need to think about your customer base, what products are likely—or unlikely—to be successful, your current level of brand recognition, and other considerations. At DaVinci, we offer a low order minimum of 36 units of a product, as this tends to be risk-free and easy to turn over.
As a practitioner, it’s often easier to know which products you should private label, as your patients already trust you and your recommended products. As an eCommerce vendor competing with thousands of other products, you need to consider setting your private label products apart from others and choosing a manufacturer with the options you want.
For example, selling on Amazon, you have more possibilities to market your supplements in specific ways to more populations. For example, you might create two labels for the same Zinc Lozenge + Elderberry blend: one that highlights immune support and another for respiratory health.* This approach allows you to reach and specifically target the needs of more eCommerce buyers.
Depending on how and to whom you want to market your products, choosing a manufacturer with formulas that meet your needs is essential.
We've found that healthy practices include turning over their supply of any given product every 4-6 weeks. By that time, PL supplement vendors have established loyal relationships with clients who return monthly to repurchase their supply of nutraceuticals, such as Vitamin D or a probiotic.
If a provider cites different statistics for their clients, it could be a sign that 1) they aren't a great partner, or 2) their product isn't good quality. Your PL partner should provide you with sell sheets and other materials to ensure the supplement is successful.
A high-quality private label manufacturer should always offer basic sell sheets and marketing materials on their formulas. Ideally, marketing services include label design, production, and help identifying products that will suit your business perfectly. At DaVinci, we’ve included these services as part of our PL pricing to keep the process as straightforward and affordable as possible.
Extra marketing support may include digital images for your online store and branded marketing materials like sell sheets, product information, and even social media posts to help you promote your supplements.
You should also monitor label fees—the amount a provider charges for creating a label—with your brand. Minimum shipment amounts are also important for physicians who don't want to sit on expiring inventory, so you should inquire about those before placing your order.
Some established PL vendors are shopping for a new manufacturer with lower shipping costs, since many companies have had to increase the price tag on shipping supplements. At DaVinci, we are thrilled to continue offering free shipping on all private label orders and free basic label design.
You’ve likely noticed that recent supply chain issues have caused delays across the board, including within the supplement industry. Make sure you choose a company that is well-established and has remained devoted to offering all of their formulas and services promptly.
The most crucial factor when choosing a private label manufacturer is the quality of their products and their commitment to truth in labeling. Consider the following when vetting any manufacturer’s products:
Verifying supplement quality should be easy: just request compliance documentation from the provider. You can also do a quick online search for product recalls and any truth in labeling violations.
Launching your private label brand is a huge and exciting step for your business. Today’s post-pandemic environment does create some distinct challenges, making it even more critical to choose the best private label manufacturer for your goals and needs. Always remember that a trusted provider should offer honest feedback from the get-go about what they can offer and what they can’t.
*This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
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