Increasing revenue doesn’t have to be all about adding new service lines. As I have mentioned in previous posts, you can also add product lines. If you can find a product or product category you are passionate about, private labeling is a great option to promote your brand and your clinic.
Don’t listen to the rumors — private labeling is not difficult or time consuming, nor is there a significant investment in inventory involved. There are many options that are easy to implement and have low minimum purchase requirements. There are typically three categories of products that medical practices private label:
Selling skin care in your practice can build your brand and increase your exposure (including your patient base). Introducing skin-care lines to your patients is not just for dermatology clinics. And you may have a place for a skin care line if:
• Providers are genuinely interested in skin care and cosmetic treatments/regimes.
• Providers routinely remind patients to wear sunscreen.
• Providers advise patients on acne treatments (possibly even in pediatric offices).
One popular manufacturer, Brand MD Skincare has a minimum starting order of 12 units, small enough for even the tightest budget.
Another option is Cosmetic Solutions, which has a minimum order of 24 units, with plenty of product types to choose from.
Remember, these are cash-pay options and you can offer your patients accessory services such as skin-care consultations (can be performed by unlicensed or ancillary personnel) to accentuate this revenue stream.
Most providers will agree that you should be taking your vitamins and many providers recommend various protein shakes and nutrition supplements to their patients. If you fit into this category, then this may be the private labeling solution for you. Minimum orders in the nutrition and supplement sector often start around $500. There are manufacturers for every possible niche of nutrition and supplement consumers, so do your research and find the ones that fit your patient demographic.
Essential oils are gaining in popularity and many clinics are carrying lines of these oils and accessories that are not private labeled. It is quick and easy to get in the private labeling of essential oils if this fits your patient base. There are a number of private-label options available, two of the most common are Wellbeing Essential Oils and Mountain Alternatives. Most minimum orders are around 25 units of a particular type of oil, so it will typically cost $250 to get started, depending on the oil chosen.
No matter what the category of product, is important to do your research when seeking out a manufacturer to partner with. Be sure to ask about these points:
• minimum order requirements
• lead time
• labeling requirements (Do they have design teams to design your label or is this something you must source? Does it cost anything extra?)
• animal testing
• product testing (on ingredients)
• do they have the required licensing? (if in a category where it is required)
Private labeling a product for your practice can be very lucrative. In order to be successful at private labeling any products in your medical practice, it is important to understand who your ideal patient is (Is it baby-boomers? Athletic young people? Overweight patients who want to improve health? Young and starting a family? Mothers who want natural remedies?), and tailor your product offering to that specific niche. By choosing private labeling over selling with the manufacturer's brand label you can set your practice apart and set pricing to reflect clinic needs without having to compete with big box retailers or neighboring physicians practices.