By Robert Johnson, CEO, Custom Capsule Consultants08.24.21
There's a saying in Hollywood that no great film was ever made from a bad script. The same principle applies with nutraceuticals and manufacturers. No matter how great your supplement idea is, if your manufacturer is subpar or unreliable, your product and your business will never live happily ever after. For aspiring brands, choosing the right manufacturer is everything.
With the supplement business booming and manufacturing facilities springing up left and right, everyone is wary of getting ripped off, which can create an atmosphere of skepticism and distrust. After many years of working on both sides, I can attest that the vetting process can be overwhelming; but connecting with a trustworthy manufacturer that actually delivers on their promises is the best business decision you can make.
In my experience, these are the five red flags to look out for when interviewing a potential manufacturer.
1. Lack of transparency. A solid manufacturer understands working with them is a major investment of time and money, and should be eager to demonstrate they’re worthy of your investment. Ask if you can come see the facility. You need to know if they’re working out of their garage or the back of a messy warehouse. The right manufacturer is proud to give tours and introduce you to the staff responsible for making and packaging your branded products. Ask for product samples. Ask to see batch records and cleaning logs. If you find yourself confused or unable to get the information you need from conversations with the manufacturer, RUN.
2. Vague answers. Unfortunately, there are many brokers in this space who present themselves to clients as manufacturers, when in reality they’re subcontracting the work to an actual facility. Again, requesting a facility tour is a simple way to sniff out these middlemen. A real manufacturer has an intimate understanding of the manufacturing process, and should be able to answer specific questions like “How much do your gummies weigh?” or “What is your quality control process?” easily and with detail. Any vague responses to questions about technical capabilities, minimum order quantities, or production mechanics is a bad sign. Certainly there are ethical brokers out there—but those who misrepresent themselves or their qualifications shouldn’t be trusted.
3. No past clients willing to vouch for their reputation. Premium manufacturers will be able to provide testimonials from past clients that show they deliver on their promises. You should be able to speak to previous clients if necessary to confirm the manufacturer's track record of success. If the manufacturer doesn’t have a list of satisfied customers with successful products, it’s hard to guarantee they’ll be a reliable partner.
4. Lack of experience in making your specific product type. Though touring a facility can help you ascertain a manufacturer's credibility, fancy equipment does not necessarily mean they’re qualified to make your product. Everyone wants a manufacturer with experience—but the specific type of experience they have matters greatly as well.
“As much as possible, you should look for a factory that makes products in the same category,” inventor Marco Perry told Business News Daily. “General-purpose factories are not as knowledgeable in the nuances of what makes a product great." For example, we're seeing numerous nutritional supplement manufacturers jumping into the CBD space. Some of them, however, lack the technical knowledge and experience that are essential to developing marketable hemp products. An experienced hemp supplement manufacturer knows the terrain of the space they’re working in, and how to make products that will actually stand out in a saturated, hyper-competitive category.
Look for a manufacturer with a track record of creating successful products in your category. (Bonus points for manufacturing teams whose members have proven pharmaceutical experience, because they’ve worked with a complex and highly regulated supply chain and bring an in-depth understanding of formulation science.)
5. Your gut isn’t on board. Just like anyone else you’d hire to do an important job, you want to feel comfortable with your manufacturer. A good manufacturer should act as a partner in your efforts, and should see your product success as their own. Open communication from the beginning is key—but at a certain point, you should be able to establish enough trust in their abilities that you can focus on your own business objectives without having to constantly look over their shoulder. If the price or terms seem too good to be true, it often is. Discounted deals are often a way for manufacturers to win a contract, only to change terms or tack on additional costs after you’ve invested a great deal of time into working with them. Trust your gut; if it tells you something doesn’t add up, listen to it.
Finding a solid manufacturer to work with is one of the biggest challenges brands face, but it's worth the time and effort it takes to do your due diligence. A great manufacturer will not only connect you with top-quality raw materials, expert formulators, and proven guidance on how to make your vision a reality—they’ll make the entire process easier and more enjoyable. If you want to make a truly excellent product, you need an excellent manufacturing partner.
About the Author: Robert Johnson is the CEO of Custom Capsule Consultants, a leading California supplement manufacturer that offers full production services, end-to-end product development, custom formulations, white-label and private-label products. He is the creator of the CBD is Better line of vegan softgels, and co-founder of TetraLabs, where he helped launch the first-ever CBD softgel supplement. He has worked as a consultant, product developer, and consumer trend expert in the supplement space since 2008.
With the supplement business booming and manufacturing facilities springing up left and right, everyone is wary of getting ripped off, which can create an atmosphere of skepticism and distrust. After many years of working on both sides, I can attest that the vetting process can be overwhelming; but connecting with a trustworthy manufacturer that actually delivers on their promises is the best business decision you can make.
In my experience, these are the five red flags to look out for when interviewing a potential manufacturer.
1. Lack of transparency. A solid manufacturer understands working with them is a major investment of time and money, and should be eager to demonstrate they’re worthy of your investment. Ask if you can come see the facility. You need to know if they’re working out of their garage or the back of a messy warehouse. The right manufacturer is proud to give tours and introduce you to the staff responsible for making and packaging your branded products. Ask for product samples. Ask to see batch records and cleaning logs. If you find yourself confused or unable to get the information you need from conversations with the manufacturer, RUN.
2. Vague answers. Unfortunately, there are many brokers in this space who present themselves to clients as manufacturers, when in reality they’re subcontracting the work to an actual facility. Again, requesting a facility tour is a simple way to sniff out these middlemen. A real manufacturer has an intimate understanding of the manufacturing process, and should be able to answer specific questions like “How much do your gummies weigh?” or “What is your quality control process?” easily and with detail. Any vague responses to questions about technical capabilities, minimum order quantities, or production mechanics is a bad sign. Certainly there are ethical brokers out there—but those who misrepresent themselves or their qualifications shouldn’t be trusted.
3. No past clients willing to vouch for their reputation. Premium manufacturers will be able to provide testimonials from past clients that show they deliver on their promises. You should be able to speak to previous clients if necessary to confirm the manufacturer's track record of success. If the manufacturer doesn’t have a list of satisfied customers with successful products, it’s hard to guarantee they’ll be a reliable partner.
4. Lack of experience in making your specific product type. Though touring a facility can help you ascertain a manufacturer's credibility, fancy equipment does not necessarily mean they’re qualified to make your product. Everyone wants a manufacturer with experience—but the specific type of experience they have matters greatly as well.
“As much as possible, you should look for a factory that makes products in the same category,” inventor Marco Perry told Business News Daily. “General-purpose factories are not as knowledgeable in the nuances of what makes a product great." For example, we're seeing numerous nutritional supplement manufacturers jumping into the CBD space. Some of them, however, lack the technical knowledge and experience that are essential to developing marketable hemp products. An experienced hemp supplement manufacturer knows the terrain of the space they’re working in, and how to make products that will actually stand out in a saturated, hyper-competitive category.
Look for a manufacturer with a track record of creating successful products in your category. (Bonus points for manufacturing teams whose members have proven pharmaceutical experience, because they’ve worked with a complex and highly regulated supply chain and bring an in-depth understanding of formulation science.)
5. Your gut isn’t on board. Just like anyone else you’d hire to do an important job, you want to feel comfortable with your manufacturer. A good manufacturer should act as a partner in your efforts, and should see your product success as their own. Open communication from the beginning is key—but at a certain point, you should be able to establish enough trust in their abilities that you can focus on your own business objectives without having to constantly look over their shoulder. If the price or terms seem too good to be true, it often is. Discounted deals are often a way for manufacturers to win a contract, only to change terms or tack on additional costs after you’ve invested a great deal of time into working with them. Trust your gut; if it tells you something doesn’t add up, listen to it.
Finding a solid manufacturer to work with is one of the biggest challenges brands face, but it's worth the time and effort it takes to do your due diligence. A great manufacturer will not only connect you with top-quality raw materials, expert formulators, and proven guidance on how to make your vision a reality—they’ll make the entire process easier and more enjoyable. If you want to make a truly excellent product, you need an excellent manufacturing partner.
About the Author: Robert Johnson is the CEO of Custom Capsule Consultants, a leading California supplement manufacturer that offers full production services, end-to-end product development, custom formulations, white-label and private-label products. He is the creator of the CBD is Better line of vegan softgels, and co-founder of TetraLabs, where he helped launch the first-ever CBD softgel supplement. He has worked as a consultant, product developer, and consumer trend expert in the supplement space since 2008.
