Established Brands: Maximizing Price Advantages for Growth
Established supplement brands have unique opportunities to leverage their market position for both profitability and sustainable growth. With a proven product line and loyal customer base, the next step is often optimizing pricing strategies to unlock new value—without sacrificing quality or brand perception.
1. Scale-Driven Cost Efficiencies
Larger order volumes and established supplier relationships typically allow for better pricing on raw materials, packaging, and manufacturing. This scale advantage reduces per-unit costs, enabling brands to improve margins or offer competitive pricing to customers.
2. Multi-Tiered Pricing and Bundling
Offering a range of product sizes or “good-better-best” lines lets brands serve different customer segments while signaling quality. Bundling complementary products—like pairing a multivitamin with a probiotic—can increase average order value and provide customers with meaningful savings, often 10–25% compared to buying items separately. This approach delivers value without eroding the perceived quality of individual products.
3. Strategic Promotions and Subscription Models
Rather than relying on constant discounts, established brands often use structured promotional calendars, aligning major sales events with industry-wide shopping periods (such as Black Friday or New Year’s). Subscription models, which offer modest discounts and exclusive perks, help create pricing stability and boost customer lifetime value without undermining everyday pricing.
4. Larger Package Sizes for Value
Offering larger supply bottles or multi-month packs can provide customers with per-serving savings while increasing margins. For example, a 90-day supply at a lower per-day cost is attractive to committed users and improves profitability through reduced fulfillment and acquisition costs.
5. Channel-Specific Pricing
Selling across multiple channels—direct-to-consumer, online marketplaces, and wholesale—requires a nuanced pricing approach. Many brands maintain premium pricing on their own websites while offering channel-exclusive products or sizes for retail and online platforms. Minimum advertised price (MAP) policies help protect margins and brand reputation across all sales channels.
6. Value Communication
In the supplement industry, price is often a signal of quality. Setting prices too low can undermine trust, while a well-calibrated pricing strategy reinforces premium positioning. Educational content about ingredient sourcing, manufacturing standards, and product efficacy helps justify pricing and support brand loyalty.
By strategically leveraging these price advantages, established brands can drive sustainable growth, deepen customer loyalty, and maintain a strong presence in the competitive supplement market.
Contact us today to explore the possibilities. We’ll help you create packaging that’s as innovative as your products!