Frequently Asked Questions about Private Labeling

by Christine Hronec

 
Q: How Has the Private Label Business Changed?

A: The poor economy supported the growth of the private label industry as consumers continue to seek the most economical product options. As it stands today, private label purchases are at an all-time high and, even as the economy does continue to improve, 94 percent of consumers will continue to purchase private label products. Consumers are now looking for quality products and innovation as much as they are pricing. Private label products have stepped up to that plate and deliver excellent quality products.

Q: What trends are you now seeing now and for the future?

A: Consumers are asking more and more questions regarding quality and how their products are made as they hear issues around FDA inspections. Quality will take a more important role in the customers’ decision-making process. They want to understand what testing is being done on their products, where the ingredients come from and how they are processed. In addition, they have those same questions about the formulas… what is the point of each raw material and why we selected the ingredients and the potency.

Q: What are your Most Popular Products

A: For much of the industry: vitamin D, fish oils, multivitamins, and ready to mix protein powders. Along with our top selling of Pure Whey Protein Isolate and our Economy Protein line, Muscle Gauge has added a Whey Naturals line, and 2 new pre-workout formulas that are free of DMAA. We are finding our clients are now interested in adding a variety of products now that include higher margin products such as vitamins, fat burners, and pre-workouts to their protein lines.

Q: Do you offer formulas that mirror the ingredients of popular name-brand supplements?

A: Yes, in fact we have a line of National Brand Comparison products and plan to add more to the line. This has been very successful for us. Most consumers are used to seeing this in other market channels and expect the same from dietary supplement manufacturers.

Q: Do you create custom formulas?

A: Yes, our company does, but through the custom division. We can reverse engineer and mimic any product on the market. We also manufacture custom formulas as long as the orders reach the minimums. With larger minimums and many more details to attend to (like delivery form and all the ingredient possibilities) we encourage our customers to see if one of our 200-plus stock products might fit their needs. That way, we provide the structure/function statements and all the research and data needed to sell the products.

Q: Why Should One Consider Doing a Private Label?

A: This is the only product in their store (whether it’s online, a gym, a doctor’s office, personal trainer, etc.) guaranteed to bring the customer back. Carrying national brands limits repeat business as they can be purchased just about anywhere as opposed to your own brand. This is the product that can create your brand just the way you want. You set the pricing, the margins, the marketing and merchandising. Your brand is created by you to reflect just who you are and will be adapted by your followers who will automatically trust the products you endorse.

Q: Do you think shoppers are concerned about supplement safety—and might they be more concerned about quality in a private-label supplement?

A: Studies show that most shoppers now see private label as the same quality as national brands. If the product is marketed and merchandised as a quality product, the consumer will not challenge the products. We give our accounts enough information to respond to the consumer who asks “who makes your product?” or “where does this come from?” or “why should I buy this?”

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