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Custom Supplement Advantage

For stores that would like to open up new markets in the health and fitness genre of products, there is the standard path of stocking and selling brand-name supplements and additives. However, because of the level of marketing and build-up in these products, the profit margins for retail sellers can be thin. That ends up requiring a retailer to spend a lot of energy, valuable shelf space, and bulk cost on product that barely breaks even and helps pay the rent. Instead, a far more viable alternative that gives access to many of the same supplement products and ingredients can be made via private label.

Financial Impact Differences

Custom supplement product lines essentially give retailers a direct path to supplements and ingredients that are just as viable for customers and provide the same health benefits as brand-label versions. However, for the retailer, the profit margin difference is considerable. Rather than having to pay for someone else’s overhead and marketing costs per bottle or container, the retailer is selling their brand with a direct supply from a custom supplement manufacturer.

Far More Market Efficiency Possible

Custom supplements are just as effective as the brand-name versions, with additional benefits of a wider range of product variations that retailers can access. Rather than being limited to just the product line produced by a brand name, private label supplements allow retailers to cater far more to their local customers and match cost to market far better. For example, a retailer may be in a location where the average customer is generally older. Supplements for joints, clarity, immunity, and bone density may be far more popular as a result. General brand names may have these products, or not, hit or miss. With private label supplements, the retailer can order exactly what their customers are asking for every time.

The beauty of flexibility possible with custom label supplements is made possible by suppliers who provide access to formulation engineering teams. Because of this possibility, retailers large and small can tailor their inventory to what works for their specific customer market versus an estimate of a regional one, which is oftentimes inaccurate. That includes both vitamin products, supplements, additives, mixtures, and enhancers. The wide range of what is possible allows retailers to provide the same advantage of multiple brand names all in one inventory and collection of products versus having to order from multiple suppliers and different pricing schemes.

No Operations are Too Small

Small businesses and start-ups benefit greatly from custom label production because the channel backs up the business with inventory access that is typically only available with larger operations working with larger middleman distributors who carry multiple brands. Instead, as mentioned above, startups and small businesses get the same selection from one source instead of getting lost in pricing schedules that eat away at thin profit margin. This is a critical difference for small businesses as so much of the profit earned per sale matters for cash flow and making overall breakeven targets to be able to grow further.

Even greater flexibility is possible with small runs. While not being available with larger brand names who push smaller orders to distributors who then add markups, small businesses and startups can take advantage of supplement trial runs that allow for considerable market testing and product viability for new mixes and variations specific to a given local market. This allows startups and small businesses to develop market niches for unique supplement products that would not be possible relying on regular brand supply lines.

There’s no question that private label supplement support is a big breakthrough in the health industry. The real question is how many new operations and savvy current ones will take advantage of the medium to broaden their market offerings, specifically those in demand from their local customer base.

 

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