Cash flow is key when it comes to having a successful supplement brand. You’ll need funding to help restock the shelves and market your newest products.
Even big established brands can run into cash flow problems if they invest too heavily into their products and company without increasing sales. We’ve outlined a couple of strategies to help you improve your cash flow, especially for those launching a new product or a new company.
Strategy #1: Outsourcing Development to Speed up Production
At first, it may seem counterintuitive to outsource tasks involved with the production of your newest supplement as a way to save money. However, the faster you can create and distribute marketing and advertising, the sooner you’ll start generating income from your product.
If you’re not a designer, web developer, marketer or specialist in product label design, then you might spend additional weeks if not months longer than necessary trying to complete all the required steps for launching your own supplement.
At Ameri-Kal, we have a team on standby ready to help you with a variety of tasks related to creating an effective supplement brand from formulation to launch, which includes UPC code registration, white papers, eBooks, website design and distribution logistics.
Strategy #2: Pre-selling Your Newest Supplement
Build up hype around your newest product. Create marketing materials promoting it, and as part of the push, begin offering to customers.
Make the process enticing by offering small discounts or some swag or gear to go with your new product. Handing out shirts, hats, or even vehicle stickers means your customers will be more likely to stick with you, and they will spread the message about your products. You especially want them excited about the ones that aren't released yet.
Get people on board with your supplement by selling out before it's been produced. Pre-selling is possible with a landing page where buyers can be the first to purchase your newest supplement. All you need to provide them with is the expected ship date and details about your product. This tactic works better with established brands because you’ve already built trust with the audience. However, it doesn’t mean it won’t be effective with new companies.
Just be sure to make good on all of your promises.
Strategy #3: Increase Sales By Leveraging Online Platforms
One of the fastest and cheapest ways to build a community is to have a social media presence. Create a page for your brand, your company, and promote the products you are making, and the customers who are buying that product.
Get involved with your community and show off team photos. People will be far more likely to look at your brand if you are working to become more inclusive in the surrounding areas.
Build your community and social media presence with photos and videos. Offer promotions for your existing products with special codes that can only be obtained by following your page. Give exclusive dives into your new product lines and be sure to offer pre-sales of your upcoming supplements.
Back up a social media presence with a well-built website. This site will include information about your company, your team, and give details about your current product lines.
Take some time and write out blogs showing off what you are doing, where your company is going, and give some insight into industry standards. Show people that you are the premier supplement product to buy; don't just tell them. By showing them all of your knowledge, they will be far more likely to buy from you, since you know the most about what you are offering.
Strategy #4: Sign Up for Financing through Ameri-Kal
Ameri-Kal leads the industry in flexible financing and helps sellers grow without the unnecessary headaches.
We offer low to zero deposits, which means you can begin the manufacturing process risk-free while directing cash-flow to find new customers. Once the product is ready, payment can be made with the shipment.
You can also take advantage of our stocking agreements. We’ll produce more of your supplement and warehouse it (for FREE). Then, you can pay for the amount of product you’ve used each month for up to four months. This option requires a minimum order of 2,000 bottles and a 50% deposit on the first month’s order.
Our Net 30 payment terms will give you the extra time you need to start earning revenue from your most recent product launch before you pay the remaining balance on your order. This can be especially helpful if you’re working with a third party vendor.
If you want to learn more about our financing and how it could help you launch your new supplement brand, then download our free worksheet to get started.