Private Label Supplements: How to Make Money

Jun 21, 2021

Written By:
Dr. Charlie Ware. AP, DOM


As a wellness professional, you want to support your clients or patients as best you can, and recommending high-quality supplements is a big piece of the puzzle. The good news is that private label supplements are a true win-win, as they get your clients the results they need and can offer lucrative revenue opportunities for your business.

Private label supplements are profitable because they have low start-up costs and order minimums. Not only do they dramatically increase customer loyalty and trust—private label supplements give you tons of credibility and create significant active and passive revenue streams. Established practitioners and vendors who have been successful with private label supplements report making over six figures per year in supplements alone.

When it comes to private supplements, you have options. For example, you can start small with just a few products and slowly build your offerings, consider custom formulations, and sell on eCommerce platforms, retail spaces, or directly to patients within your practice.

What Are Private Label Supplements?

Starting your private label supplement business refers to placing your own brand on existing, high-quality products with legal permission from their supplier. 

Private label allows you to grow your business with less liability risk and plenty of marketing support. If you are a doctor, naturopath, chiropractor, registered dietitian, nutritionist, or health coach already recommending supplements to your clients, branding your products gives you credibility and exclusivity, ultimately increasing profitability.

In addition to increasing revenue streams, private label supplements will allow you to better customize your patients’ protocols if you are a provider. You’ll know that they are receiving products with well-sourced ingredients from a brand they trust (yours), and that will keep them coming back for more.

Six Ways Private Label Supplements Can Increase Your Profits

While you want your clients to get the best products and results possible, you also want to establish a thriving business. Private label supplements can launch your business to the next level in the following ways:

Low order minimums

Private label supplements are relatively low-risk since you can start with just a few products and low-order minimums to test the waters. At DaVinci, our order minimum is just 36 bottles, which most vendors find quick and easy to turn around. If you’re on the fence, it’s always wise to start with two or three products you know will sell. For example, if 15-30% of your clients need support for gut health, hormonal balance, or other specific issues, begin with these private label products.

Low start-up costs 

You can start seeing profits quickly with private label supplements, especially since start-up costs are so low. With DaVinci’s 36 bottle order minimum, your initial investment of products can be set up and ready to sell for less than five hundred dollars.

Supplements come with ample research and development, legal considerations, customizable labels, and marketing materials, so a lot of the work has already been done. Most private label business owners with an established customer base find they recuperate their initial investment within a month or two and start seeing profit within just a few months.

Increased customer loyalty

You understand the difference between a high- and low-quality supplement, but your patients might not. When you recommend someone else’s brand, your clients will likely bargain-hunt for a cheaper option that won’t be nearly as effective. By providing a private supplement line and protocols that address your clientele’s specific needs, you’ll boost their confidence and loyalty. 

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Marketing support

It’s wise to choose a private label supplier that also offers marketing support as part of their services. These services usually include label design, production, and help identify products that will perfectly suit your business. At DaVinci, we’ve included these services as part of our private label pricing to keep the process as straightforward and affordable as possible.

Extra marketing support might include digital images for your online sales or website, and branded marketing materials like sell sheets and product information.

Related content: how to create exclusivity for private label supplements

Positions you as an influencer in your profession

If you can market yourself effectively, private label supplements put you in a different category than other professionals in your field. Having your supplement line gives you much more credibility, along with a sense of confidence among your clientele that grows as you customize your product offerings to take their health into your hands. Naturally, this level of trust leads to profitability.  

Ongoing passive income from refills 

Many medical professionals selling private label supplements report that past patients continue buying their supplements for themselves, friends, and family for years to come, creating an excellent source of passive income.

Custom Formulations

Custom formulations are another way to start your supplement line or combine private label and custom formulations. Designing your exclusive line of condition-specific formulas allows you to charge considerably more for these products since much more work goes into the process. While a private label vitamin can be ready to sell within a month, it could take one to five years to get a custom formulation off the ground.

The benefits of custom formulations are that you have total control over supplement ingredients, the opportunity to do your own research, improved credibility, and exclusive rights to your finished product. 

However, it is essential to choose a company with real expertise to assist with the process; otherwise, your custom formulation could end in disaster. Be sure the company you work with offers assistance with meeting FDA compliance, knowledge of where to source high-quality ingredients, and all necessary testing within the nutraceutical industry.

Profitability of Online, Retail, and Private Practice

When considering how to make private label supplements profitable, you’ll also want to learn the ins and outs of selling your products on an eCommerce platform (like selling on Amazon or other platforms), in a brick and mortar retail space, or in your private practice. Each option can make money for your business if approached in the right way.

Selling directly to your patients or clients is a simple way to profit from private label supplements. You already know which products your clientele needs, wants, and likely already uses—and they trust you. Primed to purchase supplements, you can rest easy knowing they are receiving high-quality products that are a money-maker for your business.

Retail sales have changed considerably over the past six years, and it’s critical to consult with experts in the supplement retail space to ensure your brand can respond to popular buyer trends while standing out as a unique product. Retail shoppers tend to look for what’s popular instead of what they need or what was recommended by their provider. 

Online private label supplements are by far the most competitive—but they can also be the most lucrative. Selling on eCommerce platforms can change depending on current crazes—like chlorophyll or colostrums—and certain best-selling supplements tend to remain reasonably consistent, like probiotics or immune support products. If you market your brand well, you set yourself up for low overhead, high profits, and the ability to sell to people all over the world.

Final Thoughts

Private label supplements benefit your clients and can significantly boost your profit margins. Start small with just a handful of products, and work your way up from there. Whether you are selling directly to patients, online, or in a retail setting, a private label brand establishes you as an expert in the field. The success of your business will reflect that.

By Dr. Charlie Ware

Private Label Supplements Guide

*These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.