Tips To Reduce Costs on Your Supplement Brand

by Christine Hronec



 
Whether your brand is distributed internationally or you have just built a website and are starting small, being conscious of cost is always a priority. Outside of the unit cost to physically make your product, there are several avoidable factors that add to your cost of goods. This article will uncover priceless tips to help you save money, letting you free up cash that can be better used for growing your brand.

  • Simplify Your Product Packaging- While national brands spare no expense when it comes to product packaging, that type of customization comes at a price. Supplements that are packaged in plastic containers significantly go up in price when a colored resin is required to manufacture the plastic. In addition, those containers are only sold in truck load quantities. For those seeking to squeeze every last penny when it comes to the cost of goods, one of the most cost effective options is to package your supplements in Mylar bags. Since these bags are 10% of the weight of plastic packaging, they reduce shipping costs due to less weight per unit and are a more environmentally conscious packaging option. Highly attractive packaging in Mylar bags can be sourced overseas at a very affordable price. For those willing to do the leg work, expect to reduce your product packaging and label costs up to 90% if you can afford to purchase the initial volumes.
  • Drop Shipping- For brands that order pallet quantities or more, contract manufacturers are typically able to ship your order direct to your distributor. This method of shipping provides your company with a faster turnaround time to getting your products where they need to be and reduces expenditures. This may also save even more depending on the geographical location of your manufacturer and their proximity to your distributor. Manufacturers based near freight shipping ports on the coasts are able to save you even more with a shorter transit route before your products are set to leave the country.
  • Labels- While labels are probably the most important element of your brand as they portray the image, quality, and distinguishing benefits of your brand compared to others, there are several ways to reduce costs when it comes to labels. Without sacrificing label quality, it is worth it to shop around and source your own labels. Label suppliers vary dramatically with unit costs and turn-around times. Planning in advance is one of the best ways to make sure you are getting the absolute best price on your labels and lower cost suppliers typically come with longer lead times. Another way to save when it comes to product labels is to keep your label design consistent and simple enough to minimize plate fees. This means that each new label design only needs subtle alterations when being printed since the only thing changing from label to label is either a flavor name or color variations. In addition, purchasing labels in volume (> 1000 labels per order across all flavors, if the label is the same exact size) can dramatically reduce your cost of goods.

These tips can help guide those who are new to managing a dietary supplement brand. If you want more tips and ideas of how to reduce costs with economical formulations, contact your sales representative today!

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