THE BASICS OF PRIVATE LABEL SUPPLEMENTS
WHAT ARE PRIVATE LABEL SUPPLEMENTS?
Private labeling is putting your brand on existing, high-quality nutritional supplement formulas with legal permission from their provider.
It allows healthcare practitioners and entrepreneurs to build a niche brand and grow their business with less liability risk because they may be partially protected by the supplier’s compliance and insurance umbrella policy.
Private labeling is an attractive option because research and development, legal considerations, marketing material, and FDA approved labels are provided by the supplement provider, enabling practitioners and business owners to reap the benefits without the time and expense of creating a new formula from scratch.
WHAT IS THE DIFFERENCE BETWEEN PRIVATE LABEL AND WHITE LABEL SUPPLEMENTS?
The terms “private label” and “white label” are often used interchangeably. In the context of marketing supplements, there isn’t much difference between them, except a private label specifies the ingredients and concentration of nutrients included in the product. A white label, on the other hand, often means simply placing a brand logo on an otherwise generic product package.
SHOULD I SELL PRIVATE LABEL SUPPLEMENTS?
Selling private label supplements can help you increase brand awareness and expand your
patient or customer base.
When done correctly, it helps build trust among patients and lend credibility to your practice or business. When people see your brand is being used by friends or family, it helps reinforce your expertise in specific areas of health and wellness.
On top of this, private labeling can offer lucrative revenue opportunities.
For doctors, naturopaths, chiropractors, registered dietitians and nutritionists, and wellness coaches that sell supplements already, branding your own products adds a factor of exclusivity that can boost profitability.
You may already be re-selling high-quality supplements to your patients. However, many people are bargain hunters that may listen to your recommendation and search for a cheaper generic version of the product, rather than buy from you.
When you have your own unique blend of active ingredients designed to support a specific metabolic system, it’s harder for someone to hop on Amazon or go to Walmart and find an option they think will provide the same benefits, even though cheaper products often lack potency and include more fillers. Private labeling improves the likelihood your patients or client-base will buy directly from you.
By ensuring your patients purchase high-quality supplements, you can help them get the results they need. When they see results, their trust in your brand grows.
HOW TO LAUNCH YOUR PRIVATE LABEL BRAND
Private labeling is a lucrative business. But it’s also increasingly competitive, so you’ll need to be organized and take a strategic approach. In this section, we will go over how to launch a private label brand in seven steps.
HOW DO I START A PRIVATE LABEL SUPPLEMENT BUSINESS?
1. Create a Checklist.
2. Evaluate your market.
3. Choose a high-quality supplement supplier.
4. Find the right products to private label.
5. Create your brand logo and label.
6. Set up a legally established business
7. Start selling your newly branded supplements!
1. CREATE A CHECKLIST
Organization is critical when launching or expanding any business. If your organization plans on selling mass quantities through e-commerce sites like Amazon or physical retail spaces, start with a checklist that outlines all aspects of your business plan, including who will be doing what.
A few examples are: Who is my market? Who will design my label? What is my customer acquisition plan? If you are unsure about what questions to ask yourself and your team, we recommend the Checklist Manifesto by Atul Gawande.
2. EVALUATE YOUR MARKET
Evaluate your market to determine whether you should sell online, face to face, or both.
ONLINE:
1. Larger Market
2. Greater Revenue Potential
3. More Data
IN-PERSON:
1. Less Inventory
2. Greater Connection with Patients
3. Easier to Start
Understanding your market on a fundamental level will allow you to design a more effective course of action. This will determine everything from how to market your products to creating a fulfillment plan.
3. CHOOSE A HIGH-QUALITY SUPPLEMENT SUPPLIER
Tailoring your products to your practice, ideal patient, or business goals is important. For example, different healthcare providers specializing in functional medicine, hormone replacement, and chiropractic care often need vastly different supplements for their clients.
Focusing on your niche is the best path forward, allowing you to build trust and keep risk low.
If you’re an e-commerce vendor concerned with maximizing your margin, you’ll want to start with a few top-selling formulations and grow from there.
Once you have identified your market and a supplement formulation that provides a targeted solution to your market, it’s important to remember you can’t be everything to everyone. Start with one or two products to build your brand around. Once your brand has created a successful base of products, you could start expanding into others.
4. FIND THE RIGHT PRODUCTS TO PRIVATE LABEL
Choosing a supplier can be challenging as there are several private label service providers out there.
Create a list of providers that receive high marks from other private labelers, and narrow it down based on product selection, service, and alignment with your core values.
5. CREATE YOUR BRAND LOGO & LABEL
If you already have a logo for your practice or healthcare business, all you have to do is send it to your representative. They will make sure the design team incorporates your company logo into a beautiful, professional label.
If you don’t have branding already in place, you can work with our design team free of charge. Our team will work with you hand in hand to create a logo and label that represents your vision.
6. SET UP A LEGALLY ESTABLISHED BUSINESS
If you are a licensed healthcare professional, you probably already have a legally incorporated business. If you haven’t already set up your business as a separate legal entity, you should do so as soon as possible.
7. START SELLING YOUR NEWLY BRANDED SUPPLEMENTS!
At this point, you will be ready to receive your new supplement line in the mail and begin selling. If you are a sole proprietor or an established healthcare practitioner that wants to offer branded supplements directly to your patient-base, starting a private label business is straightforward and quite affordable.
AT DAVINCI LABORATORIES, OUR PROCESS GETS YOU UP AND RUNNING IN THREE SIMPLE STEPS:
1. Select your formulas — choose a formulation from our extensive product line or talk with a sales consultant to discuss the best options to meet your goals.
2. Choose one of our design templates, provide us with your own logo/design, or work with our team to customize a label.
3. Receive your new private label supplements in the mail and start selling high-quality formulations to your patients or customers.
HOW LONG DO SUPPLEMENTS TAKE TO DELIVER?
The process for first-orders takes roughly 10-12 days for label printing and product delivery. Subsequent orders typically take just three to five days.
For e-commerce retailers, we recommend maintaining extra inventory. Our minimum order is only 36 bottles, but when you are selling on sites like Amazon, we recommend a minimum of 144 bottles.
Running out of products on e-commerce sites can negatively impact your brand. According to AMZ Advisors, when you run out of stock, you risk losing rank, sales, trust, and a competitive edge. On the other hand, practitioners who see patients face-to-face or through telemedicine have more flexibility with inventory. Maintaining stock isn’t as challenging, especially since they can usually get a new order shipped quickly.
CAN I RELABEL A PRODUCT AND SELL IT?
No, at least not without permission from the provider.
Simply buying a product and repackaging it with your own label without consent is not the same as private labeling. It would put you at risk for legal action for multiple instances of infringement.
Our minimum order is 36 bottles per product. With that in mind, you could have your first shipment of branded supplements entirely set up and ready to sell for less than five-hundred dollars.
Some providers have a reputation for including hidden fees or additional
costs related to developing the labels – so it’s a good idea
to ask your provider for a detailed explanation of all expenses involved.
Our private labeling services include label design, production, and help with identifying products that will best suit your business. Instead of charging service or label fees, we’ve built all of these features into our minimums to keep the process streamlined and affordable.
Additional options include digital imaging for your website or online sales, branded marketing material such as sell sheets and product information, as well as third-party testing certificates of analysis to verify your product’s quality.
WHAT IS THE MARKUP ON SUPPLEMENTS?
Marking up supplements is a judgement call that depends on your niche and how well marketed your line is. A markup of one-hundred-percent is standard. If your cost comes down to $10.00 per unit, you might sell it for $20.00 and find your sweet spot.
Some highly successful private label brands have managed to market themselves so well they effectively sell their products for three to four times the cost.
MEETING SAFETY & QUALITY STANDARDS
WHAT QUALIFIES AS A SUPPLEMENT?
DO NUTRITIONAL SUPPLEMENTS NEED FDA APPROVAL?
Nutritional supplements and vitamins are not governed by the FDA. The Food and Drug Administration does not have authority over whether or not vitamins and supplements can be sold. However, like any other food product, supplements must be compliant with the FDA’s regulations regarding labeling and manufacturing.
Provisions, laboratory production controls, and distribution guidelines for supplements and cosmetics are regulated under the Food Drug and Cosmetic Act (Code of Federal Regulations Title 21 Section 111). Current Good Manufacturing Practices (CGMPs) required under CFR-21-111 ensure testing is done on every raw material in a supplement. These tests measure purity, potency, identity, and contaminants in order to prove the product meets all standards put in place. CGMPs also provide a statistically valid method for substantiating label claims on finished products.
WHO IS RESPONSIBLE FOR MAKING SURE A SUPPLEMENT IS SAFE?
Since vitamins and nutritional supplements do not need FDA approval for sales, the onus is on the manufacturer CGMPs. The manufacturer must make sure that the products are safe before taking them to market for distribution.
This is one reason why private labeling supplements is a wise route; Providers like DaVinci Laboratories ensure all products are safe and ready for market. As a private label customer, you have protection from associated liabilities as long as you follow our labeling guidelines.
HOW DO YOU KNOW IF VITAMINS ARE GOOD QUALITY?
The best way to determine the quality of a supplement is to evaluate the company you are purchasing from.
A FEW THINGS TO LOOK FOR DURING THE VETTING PROCESS:
• Is the supplement manufacturer FDA registered?
• Does the manufacturer have an up-to-date Current Good Manufacturing Practices (CGMP) certification?
• Do they have on-site regulatory and quality control departments?
• Are they free of heavy metals?
• Does clinical research back their ingredients?
• Did doctors or nutritional experts create the formulas?
• Does the manufacturer employ 3rd-party testing?
If you are a doctor, naturopath, or licensed healthcare practitioner of any sort, you don’t want to give your patients anything you wouldn’t take yourself. Verifying supplement quality is easy. Just ask the private label provider for compliance documentation. You can also do a Google search for product recalls and truth in labeling violations. Additionally, you should look for silver or gold CGMP certification.
Private labeling presents great opportunities for any health professional. It offers a fast, easy way to offer superior-quality nutritional supplements to the people you serve, allowing you to help them achieve their goals while simultaneously building your brand and boosting revenue. By following the steps in this guide, you can reap the benefits by successfully launching your first private label products. Sign up today.