INSIDE THE SCOOP TIP 4
You may regularly see Supps42 openly voice that we do not have any “home brand” products or KPI targets on specific items to sell. This little Inside the Scoop article will go into further detail as to what we’re talking about when we refer to home brands and why we’re so proud not to have any!
What are they?
Simply put, home brand products are a line of items that a supplement retailer either
a) Manufactures themselves
b) Purchases from a supplier at a much cheaper amount then other brands
These products therefore give the retailer a bigger gross profit margin than other brands. They basically get more money if they sell these line of supplements over others.
Don’t get it twisted, from a business standpoint this absolutely makes sense to organize a deal with a few brands, buy them cheap and then re-sell for a high profit. It’s when the retailer crosses that line of prioritizing and pushing their home brands (to make more money) over another product that may be more suitable for the customer’s specific goals that we have an issue with.
HOW TO SPOT THEM?
Think of a supplement retailer’s store you’ve been in and the brands / products the sales staff tend to suggest right off the bat. Now think of a completely different supplement company and think about whether you’ve seen those same specific brands and products in their stores. Probably not huh?
Home brand products tend to be exclusive to each individual supplement company, meaning they cannot or won’t be sold in any other store. EHP Labs for example is sold just about everywhere meaning they are not exclusive just to one supplement retailer, thus not a home brand.
If the owner of a supplement company also owns and manufactures his own line of products, then of course they will be sold just in his stores. If his competitors sold them, they would simply be paying him money to have them.
Exclusivity tends to also be part of the deal a retailer makes with a supplier or the actual owners of the brand themselves. “You give me your products for X amount of dollars, make them exclusive just to us (in other words don’t sell them to our competitors), and we will ensure they are pushed and sold, even enforcing KPI targets on the brand for our staff to meet to ensure this happens”.
Just like any other retail outlet, the positioning and layout of the store is another give away as to what a supplement retailer’s home brand products are. As touched on above, they have either invested money into manufacturing their own line of supplements or organized a deal where they get these brands cheaper than others. They now have pressure to sell as much of these products as possible so where they position them within the store is of critical importance.
If there is a wall of products, the home brand items are usually smack bang right in the middle, eye line level and normally the first thing you notice. They are at a perfect height for either you or the sales staff to take off the shelf as opposed to reaching up high or bending down low to pick it up. The wall of products also tends to be filled predominantly of their home brand items with the third-party products placed up high or down long almost out of site and basically an inconvenience for you to grab.
Larger stores with actual aisles and bays of products adopt the Coles and Woolies approach. Milk is a grocery store’s most commonly purchased product hence why they strategically place it right at the back of the store, forcing you to walk past all the aisles and those little yellow “SPECIALS” tags to get it. You may have gone in with the intention just to get a carton of milk yet find yourself walking out with 10 more items.
Just like the above, larger supplement outlets will place their home brand products toward the back of the store or at the end of each aisle, again forcing you to walk past all the other products and items that are on special. A perfect way for sales staff to “add on” more home brand items you may not need and maximize that sale’s profit.
3. The Sales Assistant
Possibly the biggest tell of what a supplement retailer’s home brand products are is the sales staff. They have been told by the big boss what brands and products they need to push, they know which ones make their stats look good and more importantly, know what items will give the store high gross profits.
If you go in and ask for a protein powder, 100% of the time whatever product the sales staff recommends first is their home brand. Most retailers will have 2 or 3 home brand lines so rather than suggest just 1 item, the sales staff may give you a choice of 2. We as humans don’t like being told what to do, we want to make the decision ourselves so by giving us a choice, we ultimately think we have the power. The sales staff couldn’t care less which one you go for though, they’re both home brand items and will still give them exactly what they want.
As touched on above, most supplement companies with home brand products will actually enforce KPI (Key Performance Indicator) targets on their staff to meet, ensuring they are pushing and selling these brands. Normally a specific percentage is enforced on staff, for example “43% of your sales must include our home brand items”.
Enforcing a KPI target on staff to sell specific brands, monitoring this stat and enforcing consequences to staff who may not be meeting this target, again emphasizes the priority of making as much money from each customer possible, not matching the right product to the right person’s specific goal no matter what the brand is.
Another big tell within the sales staff is if they attempt to cross-sell to you. An example of this is when you know exactly what you want, you walk in to the store, pick up a tub of say EHP Labs Oxywhey, take it to the counter and then the sales staff may say “have you ever tried this other protein?” and begin a sales pitch to get you to swap, even though you know the product you’ve selected works for you, you know it tastes amazing and you legit just need more. If the sales staff obviously know the product works for you and you like it, why are they trying to get you to swap to something else?
Another example of prioritizing money and larger gross profits for themselves over helping a customer find exactly what they want.
WE DON’T BELIEVE IN THAT BULLSH*T
At Supps42, we do not carry any home brand items at all. We do not push one brand over the other in order to make as much profit from you possible. When people ask for advice as to what products may assist with their specific goals, we simply select the ones from ALL our brands that we feel would be most beneficial and assist with helping that individual achieve their goals.
We will not enforce a KPI target on our staff that dictates a certain percentage of their sales need to be one or two particular brands. Of course, we have products and brands that give Supps42 higher returns than others, we openly admit that, however we will not push or prioritize these products over others.
Home brand products in our opinion are a logical business concept that supplement retailers these days are abusing and crossing the line. Instead of matching the right product to the right customer no matter what the brand or return is, we are instead seeing pushy sales staff and greedy business owners who’s only concern is profit.
As always, the choice is yours as to what products you choose and which people you trust. These articles simply serve as information Supps42 believe consumers should know that other companies don’t want you to know!