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View Full Version : Organic health supplements-A Profitable Venture??



Mason Powell
10-10-2008, 11:11 AM
I own 180 acres of good farmland. I've been growing organic vegetables for 10 years now. I want to venture into growing herbs and botanical plants and use my own raw materials in the production of my own brand of organic health supplements. I know that this is a profitable venture. But I need some help in the formulation of my product line and creating a brand name for my products.

KristineS
10-10-2008, 12:48 PM
What brand names have you considered? We could probably help you come up with a list of potential names.

vangogh
10-10-2008, 01:01 PM
Hi Mason. Welcome to the forum.

I won't pretend to know a lot bout the market for organics, but I think the general market ideas would still apply. Have you spent any time researching what others in the market are doing? What products are they offering and maybe more important what products aren't they offering that people would like?

A brand name might come out of your research. Some things to think about with a name:

Find something easy for people to remember and spell. If search engine traffic is going to be important to your business try to find a name that includes a keyword for your market. The word organics seems like an obvious choice, but there may be better.

Your brand is going to be a lot more than your name. You're going to want to be consistent in your message and your actions always. For example if you're looking to include quality as part of your brand then everything you do needs to be the highest quality. Your name should evoke thoughts and feelings of a high quality. Your packaging would need to go above and beyond. You'd probably price your products on the higher end of the price range. The idea being that everything you do should try to reinforce the same message you want your brand to be perceived as carrying.

cbscreative
10-10-2008, 01:32 PM
I too will say welcome to the SBF! There is definitely a market for organics and I am in that market. Vangogh already made some great points (he's good at that). You do have the advantage that your target market understands that you can't compete on price. We value our health above the cost difference (good eating is cheaper than medical bills). The primary challenge you have is getting exposure, but for that, you need to get plugged into the existing networks. One that comes to mind for me is healthranger. If you can get connections like this, your success will be catapulted.

I hope we can learn more so the members here can help you realize your dream of getting your products to market. As you continue to investigate, I'm sure you'll find a niche that is not yet being utilized, and once you discover one, you will be even closer to great success.

Paul Elliott
10-15-2008, 05:21 PM
Mason, I have a little experience with nutritional supplements.


I own 180 acres of good farmland. I've been growing organic vegetables for 10 years now. I want to venture into growing herbs and botanical plants and use my own raw materials in the production of my own brand of organic health supplements.

Start by getting your process certified organic by one of the organizations that does such things. Often the best recognized is the one in whatever state your operation resides.

Then, be very careful!! You are possibly opening a 55-gallon drum of worms!


I know that this is a profitable venture. But I need some help in the formulation of my product line and creating a brand name for my products.

Straight herbs fresh or dried out of your farm is OK.

When you begin doing ANYthing to the herbs other than grinding and packaging them, you run into all sort of over-zealous regulators. Even mixtures of 2 or more herbs attract regulators like a fish's death throes attract sharks.

State and Federal agencies abound and have increasingly bloated budgets to crackdown on "violators." Most violators are unwitting, but I've recently been made aware of the State of Texas fining a company who makes such nutritional supplements over $1 million because of how a distributor characterized its product--completely without permission or awareness of the producer.

The packaging of your product should be done in a processing plant that adheres to and is certified according to GMP (Good Manufacturing Procedures). There are many companies that do private label process of all sorts who can provide you that certification.

At the Federal level you have to comply with the FDA, Federal Trade Commission, and even the Department of Commerce, in some cases.

There are unbelievable requirements--State and Federal--for labeling your products.

You may say that you'll just keep your head low and not make any waves. If you are perceived as any threat by your competitors, they will anonymously report you to the State or Federal agencies. Suddenly, someone shows up on your doorstep with a badge and a subpoena for your records.

BE SURE you carefully plan and research your concept before you invest any money in it.

When you've got your plans all laid--before you've done anything else or invested any money--go to an insurance company and ask for business insurance for your operation. They will tell you where the land mines are in your plan and business because they will have to do the risk management analysis before they insure you.

Be sure you incorporate your business in such a way as to gain maximum protection of yourself and other segments of your business operation. This should be handled by an attorney knowledgeable in such issues.

You can likely get a lot of information and guidance from the SBA.

David Staub, a business attorney in this forum, can likely give you some guidance.

I say these things not to frighten you but to warn you and direct you so you don't spend a lot of money until you have carefully planned your business.

Paul

Sean Philip
10-23-2008, 03:55 AM
I agree that organic health supplements is a booming business right now and it looks as if the hype for organic is here to stay for a long time to come. Success is relatively easy in this business - once you've got your priorities right. Don't compromise on quality, create an appealing brand name, design attractive labeling and use webmarketing to your advantage. Obviously, the crux of your business will boil down to the formulation of your product line and its demand in the market today. Another very important criteria for your success will be the choice of manufacturing unit you use for the production of your products. Make sure you are able to have complete trust in the manufacturing unit. Choose one which strictly follows GMPs and who regularly gets your product checked by third party verification of ingredients for potency and strength. Preferably, it should have its own research lab and a team of scientists who can help you with product formulation.

Mason Powell
01-14-2009, 08:42 AM
Thanks one and all for taking the time to respond. I really value all your inputs. I'm thinking of initially going with a contract manufacturer to produce my line of organic health supplements. That would make it easy for me. Does anyone have any recommendations?

ShopLady
01-14-2009, 09:42 AM
Hi Mason,

I did a quick search and found a lot of websites that offer what you are looking for, but they look "canned"; premade and not legit. But I did find a website that seemed to fit the advice and such that the awesome posters have given to you here. If possible it would be a good idea to search for a manufacturer in your area, if you ever wanted to visit their facilities, get familiar with their process, etc but that is just my opinion. Here's the website (http://www.nhklabs.com/services.php) I found, best of luck to you, keep us updated!! :)

Paul Elliott
01-14-2009, 02:15 PM
Thanks one and all for taking the time to respond. I really value all your inputs. I'm thinking of initially going with a contract manufacturer to produce my line of organic health supplements. That would make it easy for me. Does anyone have any recommendations?

Mason, I had a client several years ago who does a lot of business with the custom manufacturers. She sent me the following information this morning.


We now work with a local company that we have found to be great. The company is Progressive Labs out of Irving. You can email David Daniel at daviddaniel@progressivelabs.com (http://us.mc2.mail.yahoo.com/mc/compose?to=daviddaniel@progressivelabs.com) and see if they are taking on any new customers.



The other company that we are starting to work with is Protec Labs out of East Texas I think it is. You can make contact with a lady there by the name of Traci Holms-Steinmiller and her email address is tracihs@proteclab.com (http://us.mc2.mail.yahoo.com/mc/compose?to=tracihs@proteclab.com) .

I don't think it much matters where the manufacturer is located. Both of these are in Texas. I was told that the Chinese had bought several others (not always easy to determine which ones are Chinese-owned), and that the companies' policies made it less beneficial to do business with them.

Paul

Harold Mansfield
01-14-2009, 06:41 PM
You may also want to consider as a side project writing an ebook about organic gardening for the home novice.
There are a few companies that specialize in Digital products (like e books) including Click Bank, and Create Space. Your real life experience will give you authority, and a good looking landing page with some photos of you and your farm will go a long way.

Just a little something to think about in case you wanted to cover more than one base.

huggytree
01-14-2009, 08:59 PM
my local food store has a 'natural / organic area'....i never see anyone in that section.

i know its a growing market and i know its very popular in certain area's....but is it growing right now or shrinking? Organics cost more(i think)...are people spending their money on extra's like that? (i dont know).....

i just want you to think about this in the middle of a recession....it may not be a good time right now?


with food i think Brand name/logo/packaging is very important...it has to look like something you'd want to buy...i would not rush into a name and tagline.....a name could make or break you with food products.

cbscreative
01-14-2009, 09:27 PM
There are a couple ways to look at the recession aspect. It's true that many people will cut those kinds of expenses, but you pay a different way. Staying healthy is always cheaper than getting sick. The people who buy healthier products know that, so they are less prone to shop based on price knowing they end up paying the difference to the doctor and save nothing. It will likely weed out the people who are less committed or don't think it through well enough, unless you convince them of the value.

I did see a news article the other day that said recessions make us fat because people make poor food choices based on price. That's obviously true, but not everyone will choose that way.

billbenson
01-15-2009, 02:27 AM
Well, on that approach, you could compare Doritos at $4 for a large bag which is no doubt unhealthy. You could fry some tortillas for 20 cents (not including the cost of frying). You could also stick the tortillas in the oven and bake them, no doubt the healthy est method.

It would be interesting to see what a hit snack food has taken because of the economy.

phanio
01-17-2009, 02:02 PM
While all the information presented is great advise, do not forget your potential customers. Ask potential consumers what they look for, how they buy, why they purchase? This may help in designeing the strategy of your business model, the types of products to offer, and how to both package and market to this segment.

vangogh
01-17-2009, 02:27 PM
do not forget your potential customers

Agreed.

Just because you don't see people in the organic aisle at your local supermarket doesn't mean the market for organics. I live in a city where people are very conscious about what they eat. Many people here will glad pay extra for organic food and we probably have more organic markets per capita than most other areas.

Another area may not have the same type of people living there and so the organic aisle may be empty.

But people who buy organic generally aren't buying based on price. A poor economy is not likely to deter them from continuing to buy organic.

Mason Powell
02-25-2009, 07:03 AM
Organics is good business. My farm is doing well, in spite of the recession. And just for information, the farm is already organic certified. I have been doing some research myself on contract manufacturers. I'm especially interested in gel encapsulation which I'm not sure NHK provides (it's not mentioned on their site). I'm pretty impressed with Nutricap Labs so far--they have over a decade of experience in manufacuting all kinds of health supplements. They are GMP-certified and what's suits me best is that they offer small production runs, storage and drop shipping facilities. If I go with them, I also like the fact that they can help me out with designing product labels and packaging.

Paul Elliott
03-01-2009, 02:48 PM
They are GMP-certified and what's suits me best is that they offer small production runs, storage and drop shipping facilities. If I go with them, I also like the fact that they can help me out with designing product labels and packaging.

What have you found out so far, Mason?

I may have some resources for the design and packaging issues.

Paul

Edwin Richardson
11-06-2009, 08:00 AM
Hi Mason. I've had some experience with Nutricap Labs. I was working for an Organic health food shop and we wanted to start our own line of private labeled organic health supplements. We approached Nutricap Labs. Their quotes were reasonable and their products were comparable to many of the leading brands that we were selling. As I recall, sales on these supplements were good. Had no problems working with them. They always delivered on time. Would be happy to help you with any specific information if I can.