Why Dentists Should Go For Private Label Clinics

Most doctors may not have expert knowledge about marketing and brand building. Hence, they may be very good at their job, yet they may not be able to retain many of their old customers in their clinics. 

One way to sort out this problem is to go for private labeling. Private labeling means the retailer gives customized formulations and brand names to a product without investing in setting up the entire supply chain. 

It is also essential to ensure that the private label manufacturer does not cause unnecessary delays and that the product’s quality is up to the mark. Unnecessary delays and poor-quality products can defeat the very purpose of private-label manufacturing, and it can have huge ramifications for the dental clinic’s public image.

This article lists the advantages of private labeling for mouth care clinics.

Benefits Of Private Labeling For Dentists

There are various perks of private-label care clinics, read them below-

It Gives A Great Boost To Marketing

Private label oral care products have the dentist’s brand name and image printed on the products he prescribes to his patients. 

Hence, every time the patient uses a product prescribed by the dentist, he sees the name of the clinic on the tube or the bottle. Thus, the next time when he goes to buy the same product, there is an element of brand recall. So the customers recognize the clinic and the dentist and become loyal to that brand.

The Customization Of Oral Care Products

Private labeling allows a dentist to customize their products. So it is for the dentist to decide whether he wants to prescribe a peroxide-based whitening formulation. Thus, depending on customers’ specific needs, the dentist can offer a wide variety of products. The element of customization makes the customer feel special because he gets need-based treatment. 

Allowing Quality Checks 

Since the dentist can prescribe formulations for each product, he can ensure that all the constituents used in the products are safe. Many manufacturers are not doctors, and they might use products that may have side effects. But dentists are qualified professionals, and when they prescribe the formulations, they will most likely be free of potential side effects. 

Gives An Opportunity To Become Wholesalers

Private labeling is adopted by retailers who want to build their own brands. However, if customized formulations become popular with time, the dental clinic ( retailer) can become a wholesaler for chemist shops and other clinics.

Gives Control Over The Products

If dentists prescribe toothpaste, whiteners, etc., from big brands, then they will not have any control over the formulations or the packaging of the products. This is because big brands change their product packaging and formulations based on market trends and the company’s business prerogatives. 

Hence, the product that the patients of a clinic get will not be consistent. Lack of consistency has several ramifications. Firstly, a change of packaging can lead to confusion; secondly, a change of formulation can have unintended health effects.

Higher Business Stability 

A small business like a small dental clinic may not be able to withstand any shocks in the supply chain of manufacturing a dental product. However, a private label manufacturer will have access to a wide network of suppliers. So even if a particular upstream supplier fails to deliver the raw materials, he can get the necessary supplies from another supplier. 

Such flexibility in the supply chain will make sure that the products never go off the shelf, even during times of crisis. Since the products never go out of the sight of the consumer, they always remain in the mind of the consumer. And so, the customer is never compelled to change his preference due to the exhaustion of stocks.

Scope For Improvement Of The Product

When it comes to manufacturing a dental care product like toothpaste or a teeth whitening agent, there is an information asymmetry in the supply chain. The dentist knows which ingredients are medically sound and which are not, but he does not know about the latest raw materials available in the market. 

Likewise, the manufacturer knows about the latest advancements in the market, but he may not know if a new raw material is medically sound. So in the case of private-label manufacturing, the dentist and the manufacturer can both benefit by sharing their knowledge. 

Together they can create a product that is medically sound as well as commercially up to date. In this manner, the end user will be benefitted as he will get a good product that is safe and up-to-date.

Scope For Experimenting

Private-label manufacturing allows a dentist to experiment. Commercial brands may not be interested in using organic or environment-friendly raw materials because procuring organic raw or environment-friendly raw materials might be tough and expensive. 

However, if a dentist goes for private label manufacturing, then he is free to experiment; he can make a deal with the manufacturer to source the raw materials in an environmentally safe manner. 

Increases The Overall Profit Margins

The profit margin is determined by the net sales over the cost of production. Private labeling increases the profit margins of a clinic in two ways. Firstly, it increases sales by improved marketing, and secondly, it lowers the cost of production. When a dentist goes for private labeling, he can create his own products without having to network with the whole supply chain.

Conclusion 

Private labeling can have many benefits for retailers, including dental clinics, who have to increase customer loyalty. However, estimating the market demand for the retailer’s products is essential before going for private labeling. 

Most third-party manufacturers who undertake private labeling contracts have a minimum contract amount. So if the demand for a particular retailer’s products is insufficient, it will result in excessive inventory build-up and no increase in profit. So before a dentist goes for private labeling, gauging customer preferences, market competition, etc., is vital.