When working with a supplement manufacturer, it is essential to understand the services you are receiving and the total costs to determine if the proposal is cost-effective for your wellness business. Different manufacturers will offer various services, and knowing what services you will need and what they will cost is critical. Depending on the quantity of business you are going to create for the manufacturer, you may be able to negotiate some services or prices, but you’ll need to provide evidence of your projections.
For example, you are going to need labels for your supplements. You will need labels regardless of whether they are created by your manufacturer or made by a third-party printer and sent to your manufacturer. You will also need warehousing, marketing, and customer service processes. Knowing all of your options and the cost of those options will allow you to make a fully informed business decision.
Here are a few services to consider when choosing a manufacturer to work with.
If the goal is to create your own supplement products with a formulation you created, you will need a manufacturer to help. You need a company that will work with you on how you want your supplements delivered, whether by tablet, capsule, soft gel, or gummies. While you bring the expertise and the idea for a custom formulation, you need to sit down with a representative from the manufacturer to ensure what you want is feasible and done correctly.
Label Design Services
While you likely have a concept or design in mind, you will need to work with professionals to create the label for your supplement line to ensure it is reflective of your brand while meeting all regulatory needs and being visually appealing to your target customers. There are a lot of factors that go into label design, so working with an experienced company will benefit you greatly. The label will also need to be consistent across all of your products, so it cannot be thrown together last minute. Additionally, you need to know if your manufacturer will work with you on redesigns and the additional costs for that.
Warehousing and Distribution
How and where you store your inventory is critical. While it may seem appealing to own and run your warehouse, that is a significant expense and workload that you may not be prepared to take on. Rather, you can work with a manufacturer that also offers warehousing services, so your products will be safe and secure until they are shipped out to your customers. Warehousing goes hand in hand with distribution, which is an enormous undertaking. Distribution pulls products when they are ordered, packaging them and sending them to the customers promptly.
These are going to be the most significant services for your company. While the formulation and the label are critical, keeping the inventory safe and organized until it is safely in the hands of your customers will make or break your business. Financially, it will be the most significant expense you will need to cover. From a customer service standpoint, the product’s condition when it arrives and the speed at which it is delivered is critical.
If the manufacturer you are talking to does not offer these services, you can talk to different manufacturers or talk to third-party vendors to cover the services you still need. In creating a budget for your business, you will need estimates for all of the required services at different capacities so you can know in advance at what level of business the prices will change. Generally speaking, the more business you have, the lower rate you can get.