The amount a supplement company earns per product sold depends on how the product is sold. Companies that sell directly to consumers should aim for a profit margin of 10 to 40 percent, while those who sell through distributors usually have a margin of 5 to 15 percent. Private label supplements are cost-effective because they have low initial costs and minimal orders. Not only do they dramatically increase customer loyalty and trust, but they also give you a lot of credibility and generate significant active and passive sources of income.
Established professionals and marketers who have been successful with private label supplements report earning more than six figures per year on supplements alone. You can read the FDA's “Dietary Supplement Labeling Guide” for more information on how to label your product. Sales in health stores have grown by a respectable 4.5 percent annually, and online sales of vitamins and supplements have grown by 12 percent every year. When it comes to making money from a supplement company, it's important to understand the basics of the industry.
Private label supplements are an excellent way to get started, as they have low initial costs and minimal orders. Additionally, they can dramatically increase customer loyalty and trust, as well as give you a lot of credibility and generate significant active and passive sources of income. In order to make private label supplements profitable, you'll need to understand the regulations that apply to your product. Additionally, you'll need to obtain a license from the food business operator (FBO) if you intend to manufacture or sell food supplements.
When marketing nutritional supplements, you must remember that your health product must meet the needs of customers. You might consider targeting a niche market by specializing in a certain aspect of your industry, such as beauty supplements. But keep in mind that you'll need to comply with all relevant regulations and make sure your supplements are safe. You can also promote your supplements online through mobile and easy-to-use websites, emails, paid marketing, affiliate marketing, and paid Amazon promotions.
Maybe that Facebook friend you met in college is now running a supplement business, or a LinkedIn contact of yours is connected to dozens of potential customers. Custom formulations are another way to start your supplement line or combine custom and private label formulations. By providing a private line of supplements and protocols that address the specific needs of your clientele, you'll increase your trust and loyalty. As consumers' interest in health and wellness increases, so does the market for supplements that support this lifestyle.
When it comes to financing your supplement business, bank and SBA loans are probably the best options, other than friends and family. With the right strategies in place, you can make a substantial amount of money from selling supplements – even more than six figures per year!.
