Profit Margin and Pricing in the Supplement Industry
The markup on supplements can be substantial, often ranging from 40% to 100% or more. Companies that sell directly to consumers aim for a 10 to 40% profit margin, while those that sell through distributors see a 5 to 15% margin. For different types of supplements and products like gym equipment, apparel, and drinks, specific markup rates are recommended.
Average Price of Supplements
The global dietary supplements market size was estimated at USD 115.06 billion in 2018 with an industry average profit margin of around 38%. Supplement stores can make about $100,000 per year in income. Online shops often face competitive pricing challenges, necessitating the need for attractive products and a gross profit margin strategy.
Supplement Pricing Insights
The average price per unit of multivitamins was about $10.41 in the US in 2018. Quality and pricing of supplements vary, with some affordable options providing good quality while premium brands cost more. Advertising costs in the supplement industry are significant, influencing product pricing strategies.