How to Break Into the Vitamin and Supplement Industry
The vitamin and supplement industry brings over a billion dollars in revenue into the US each year. The industry hasn’t stopped growing and according to a study done by Zion Market Research, the Vitamin and Supplement market will gross to over 220 billion by the year 2020. So what does this mean for entrepreneurs? Probably that getting into the Vitamin and Supplement industry by becoming a distributor is a safe bet. Contrary to popular belief, having a good product will not give you a leg up in the industry. To get into the vitamin and supplement industry and be successful, you must market your product well, have a good vitamin manufacturer, and handle all of the legalities and finances.
You have your chosen your product, but what can you do to make it sell? The first step in defining your marketing plan is identifying your target customers. Once you identify this group, think about their characteristics. How can you appeal to this group? If you aren’t sure about the answers to these questions, you can always contact a market research firm to conduct a national survey or focus group.
Now, thinking about your customers, where do they typically shop? E-commerce has been booming lately, but it is always good to have a retail outlet that a customer can buy from instead of waiting for their shipment. If you are taking your product to a retailer, you have to think about the labels for the product and web content. People like to research products online as well as in stores. Having a solid website with facts and statistics will entice your consumers. Color schemes and font are important when marketing. If you are selling vitamins to seniors, you wouldn’t want the writing on the labels or your website to be orange, yellow, or bright green, because those colors are hard to see.
When it comes to manufacturing, sometimes it is better to outsource. Outsourcing allows you to have larger selling margins and therefore you will make more money. When looking for a manufacturer, you need to decide whether you want a domestic manufacturer or a manufacturer based overseas. If you are looking into a domestic manufacturer, the product quality tends to be higher but the cost can be almost double the overseas cost. Manufacturing domestically can also appeal to a certain audience who like domestic products. If you’re not interested in selling your products with a Made in America label, then maybe the overseas option is your best bet. The key to building a good relationship with the manufacturer is having a clear business model with a genuine product. Always verify that your manufacturer is NSF compliant before signing a contract.
Legalities and finances
Before you sell your products, always consult with a business lawyer to ensure that your business is compliant with all laws and regulations. This is to cover yourself legally just in case there any issues arise later on.
Financing is key to having a good business model. You don’t have to go out and sign up to appear on Shark Tank for your business to succeed. You can get financing from banks or even family members to start your business and ensure that you have enough product to fulfill all sales orders.
Starting a new business is exciting, but starting a new profitable business is life changing. Ensure that all of your bases are covered before you enter the Vitamin and Supplement business. This business is very profitable, but only to those who have their customers in mind when dealing with marketing and manufacturing.