Branding and marketing are key components to building a successful medical aesthetics practice. An investment in a private label, physician-branded skincare line that carries your logo is a logical extension of your practice’s offerings. You can choose the products and ingredients that you feel are most effective. Patients will need to purchase the products directly from your practice, which helps to build loyalty and provides more opportunities to cross-sell services. Additionally, private label products can offer a more attractive profit margin than branded lines.
Regardless of the type of product line you choose to private label, the mark-up is entirely up to you, based on your wholesale, development and marketing costs. (For example, your physician-branded eye cream may cost $15 per item from production line to shelf. If you mark it up to $90 and give a 10% commission to your staff, you still net $66). The mark-up on these products can be 300% or more, depending on what the market will support.
“Many brand name products that are sold in a physician’s office are also available directly through the Internet, or they can be purchased from any other physician carrying the brand resulting in price wars,” says Jim Krulisky CEO of Dermesse Skin Care (www.dermesse.com). “A private label product is only available at your office. There are no price wars. There is no losing of sales to the internet.”
Types of Private Label
There are three different levels of private label from which to choose. Finding the right fit for your practice depends on your projected volume, budget and desired level of involvement in the development process.
Image copyright istockphoto.com