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Choosing The Right Private Label Partner: Tips And Insights

Healthcare is a dynamic industry that seems to continuously evolve, whether it’s through advancements in technology or the changing needs of an increasingly health-conscious public. With these big changes come dynamic opportunities for physicians and clinic owners. 

Private labeling allows them to explore a strategic avenue to enhance patient care, add value to their practices, and establish a strong brand identity. Over 87% of consumers are choosing private label items for all sorts of reasons, including monetary and selection range. [1]

What is Private Labeling?

Private labeling is a process where a manufacturer produces items for a buyer under the buyer’s own brand name. This isn’t to be confused with ‘white labeling,’ which refers to generic products produced by a manufacturer and sold to multiple resellers that then resell under their own branding. Private labeling is a more exclusive venture where the buyer has full control over the specifics, such as the formula, product range, and more. The products are made solely for them and aren’t sold by anyone else. [2]

Within the healthcare sphere, clinic owners can curate a line of products, such as wellness products or supplements that are distinctly their own. They can offer a unique, tailored range to their patients that has been specifically crafted to meet their needs. For example, a dermatology clinic could provide patients with their own skincare products that match up with their treatment plans rather than recommend a variety of off-the-shelf products from different brands.

In addition to the convenience for patients, clinics get to employ their deep understanding of patient needs and field-specific knowledge to offer products that are customized, trusted, and represent their clinic’s brand identity. It also provides an extra revenue stream and lets the clinic differentiate itself from competitors.

Customers tend to choose private label brands because:

  • They offer better value
  • They offer a larger assortment
  • They offer deals offered with a purchase
  • The packaging or display drew their attention [3]

These reasons could inform a successful private label venture, whether you hone in on competitive pricing, lumping in deals if purchased with clinic services, or even taking the time to refine your marketing and advertising.

Why Is It Important to Pick the Right Private Label Partner?

Before you even think about the formulas, products that make up the collection, or other nuances, you’ll need to find the right private label manufacturer. The best private label companies will be able to create top-quality products and be easy to work with.

The partner you end up choosing will make or break the success of your product line for numerous reasons. As they will essentially become an extension of your practice, you need them to be consistent and reliable. Selecting the wrong partner will ultimately impact the quality of your products and will also have consequences on your clinic’s overall reputation. Issues like product recall, or quality issues can have detrimental effects, such as damaging your patient’s trust.

What Makes a Good Private Label Manufacturer?

So, what classifies as a good manufacturer? Top private label manufacturers will act as equal partners in your journey, and will be able to translate your vision into tangible products. They should be committed to crafting high-quality items and have proven manufacturing processes in place. 

At the same time, it’s not about finding the biggest or most famous manufacturer but more about choosing a partner that will align with your needs and deliver the quality that your patients deserve. To determine the best private label company for you, keep these factors in mind:

  • Quality Assurance – Especially in the realm of healthcare, high-quality products are non-negotiable. Be sure to find a private label manufacturer that has a robust system for quality assurance in place that heeds relevant regulatory standards. This way, you’ll know that all products meet your clinic’s stringent requirements.
  • Responsiveness – With any business relationship, good communication is the key to a fruitful partnership. The manufacturer should be accessible and responsive, open to any inputs, and proactive in providing updates.
  • Experience and Expertise – Look for a private label supplier with deep industry experience and technical expertise. They should understand the nuances of the product or products you’re looking to make and have a proven track record in the industry. Depending on what sort of products you want to create, you may need a manufacturer with specific knowledge in certain healthcare spheres.
  • Flexibility – While having a system is important, the manufacturer should be able to offer a degree of flexibility. As requirements and ideas may change, they should be adaptable enough to accommodate special product requests or changes in demand or specifications.
  • Ethical Practices – Your manufacturer should adhere to ethical sourcing and production practices. Especially if you’re manufacturing ingestibles or topicals, the way products are produced can have huge implications. Raw materials should be sourced responsibly and sustainably, and they should also adhere to fair labor practices, hygiene standards, and proper waste disposal. While legal compliance is important, it’s also about doing what’s morally right and making sure your products reflect these values.
  • Competitive Pricing – Being the number one draw to private label products, competitive pricing can let you offer your products at rates that are attractive to patients while maintaining a reasonable profit margin for your clinic. The top private label manufacturers should be able to provide attractive pricing without compromising on quality. They might use efficient production methods and bulk purchasing strategies of vertically integrated supply chains to keep costs in check. [4]

Find Your Ideal Private Label Partner

If you’ve already formed a plan to start making your own line of products, the next course of action is to find a private label manufacturer. Choosing a partner relies on your vision, market, and the specific needs of your patients. 

Your ideal manufacturing partner shouldn’t just focus on mass production but also regard quality, ethical practices, industry expertise, and competitive pricing as characteristics of their identity. With the right private label partner, you can use your private label line to shape your clinic’s brand identity and provide extra value to your patients.

Taylor Froiland is the president of Legere Pharmaceuticals in Scottsdale, Arizona and serves on the Board of Directors for RK Logistics Group. He also owns and operates Medmetrics Compounding Pharmacy in Chandler, Arizona, specializing in various pharmaceutical services. Taylor holds a PharmD and has expertise in compounding, medicinal chemistry, and quality control.
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