What is in this article?:
- What do supplements really cost?
- Transparency isn’t cheap
- Branding ingredient quality
- High price does not mean high quality
As the economy stagnates and consumers look at cutting costs,natural products retailers should be prepared to answer questions about supplement quality and pricing.
“Why do these supplements cost so much?”
It’s a question natural products retailers had better be prepared to answer, in an age when the economy is weak and big-box and Internet stores are increasingly giving traditional supplement sellers a run for their money.
Natural foods stores and other specialty supplement sellers still ring up the majority of supplement sales, but that could change in the not-too-distant future. According to Nutrition Business Journal, supplement sales in the natural channel grew 4.7 percent to $10.3 billion in 2010, while the mass market channel posted sales of $8.2 billion, a 4.8 percent increase from the previous year. Meanwhile, online supplement sales are soaring and expected to surpass $3 billion by 2017, NBJ reports.
It’s no wonder comparison shoppers have questions when it comes to supplement prices: A bottle of 250 private-label calcium tablets from big-box store X can cost as little as $9, while consumers might pay more than three times that for the same number of doses from an established brand at a neighborhood health food store. When it comes to multivitamins, the price span can be even more dramatic, with a one-month supply of an organic, liquid multivitamin costing about the same as 500 days worth of generic store-brand tablets from a mass merchandiser.
Sure, larger stores have economies of scale working to their advantage. And smaller retailers have to invest more in knowledgeable staff, money they have to recoup—at least in part—via higher supplement prices. But set those variables aside and supplement industry experts agree: When it comes to dietary supplements, you get what you pay for—at least most of the time.
“This is one of those industries where there is just no such thing as high-quality, low-price,” says Paul Jacobson, CEO of Thorne Research Inc., which makes supplements for the practitioner channel and select pharmacies. “If consumers want pure, quality ingredients, they have to pay a little more.”
As natural products retailers, you know this. Here’s information that can help you explain to your customers why your supplements might cost more than others they find online or at mass market retailers.