White label contract manufacturing in the health and wellness space is an initiative that combines a manufacturer’s ability to produce industry leading IP of formulations and market ready products and have these properties licensed out to marketing orientated companies.
Placing their own brand name on the licensed product and focusing on the brand development and sales in a particular sector, the licensee has the ability to solely focus on developing a retail model away from the production logistics, leaving the manufacturer to Deliver In Full and On Time to satisfy orders as and when needed by the licensee.
The advantages of this model are numerous, ranging from benefitting start up businesses through to large established companies and include.
1 – Lower operating costs
Equipment, research and development, sourcing quality ingredients and adhering to strict regulatory requirements for health and wellness products are all factors that incur huge operating costs for manufacturers within the health and wellness space. These costs need to be offset across large production runs to achieve sufficient economies of scale to justify production. The reality is that for most brands and companies, producing their own products for retail is not an achievable means to turn a profit.
In comparison, limiting the risk and exposure to these costs by partnering with a contract manufacturer through a white label license agreement gives a brand the ability to carry limited stock, order on demand and have greater cash flow resources to focus on their chosen area of expertise in sales, brand development and marketing.
2 – Reliability and confidence
Outsourced manufacturing partnerships come with a degree of trust that derives from the contract manufacturers expertise in the health and wellness space. You are not only investing in stock for your retail brand and business, but peace of mind that the product you are branding is a quality formula adhering to all regulatory requirements for sale in the Australian market.
Logistically your manufacturing partner for white label success should be able to deliver in full and on time for every scheduled batch of product you require, ensuring a smooth transition from expenditure to sales revenue in the shortest possible time frame, a critical component for success in a retail model.
3 – Superior products
In a health and wellness sector often saturated with products of varying quality and performance, a partnership to white label products via a contract manufacturer will allow your brand to have access to exclusive products that are not available to your competition. With validated marketing claims through comprehensive testing, your brand will stand out in a crowded marketplace to the consumer who has respective wants and needs that can only be met by premium level health and wellness products that Tismor Health and Wellness can provide.