How Clinicians Can Create Passive Revenue Streams by Dispensing Private Label Skincare from Their Medical Practices
In an increasingly competitive healthcare landscape, clinicians are continuously searching for innovative ways to diversify their income streams. One avenue that has proven to be both profitable and rewarding is dispensing private label skincare from their medical practices. By creating their own exclusive skincare brand, healthcare providers can tap into the growing skincare industry while establishing a loyal patient base and adding a layer of convenience for their clients. This model provides clinicians with greater control over distribution channels, pricing, and brand identity, all of which can significantly boost revenue and build long-term success.
What is Private Label Skincare?
Private label skincare refers to products manufactured by a third party but sold under a brand name specific to the business selling them. For medical practices, this means offering skincare products that are exclusively branded with the practice’s name or a brand that the owner creates. These products range from cleansers and moisturizers to sunscreens and anti-aging creams, all formulated to cater to the unique needs of the practice’s patients.
Benefits of Creating Passive Revenue Streams
1. Control Over Distribution Channels
One of the most powerful benefits of offering private label skincare is that clinicians have full control over the distribution channels. Unlike partnering with large retailers or third-party companies that may impose constraints on where and how products are sold, clinicians can limit the sale of their skincare products exclusively to their practice or online store. This allows them to:
Ensure product quality and integrity.
Maintain a direct relationship with their patients, which fosters trust and loyalty.
Avoid selling products through retail giants, where margins are often smaller and competition is fiercer.
By controlling the distribution, practices create a personalized experience for their patients, offering skincare advice alongside the products that complement their medical treatments.
2. Pricing Power
With private label skincare, clinicians gain control over pricing strategies. This approach allows them to set competitive prices based on the perceived value of their brand, the quality of their products, and the needs of their patients.
Many established skincare brands often have their pricing dictated by wholesalers, retailers, and external distributors, meaning that clinicians have limited influence over the cost. In contrast, private label skincare allows for more flexibility in pricing, giving clinicians the ability to:
Set premium pricing for high-quality formulations that align with their practice’s reputation.
Offer bundled discounts or promotions tailored to specific treatment regimens.
Ensure that prices are consistent across all channels, preventing undercutting from online competitors.
In the healthcare sector, where trust is paramount, patients often prefer to purchase products from their clinicians because they associate the provider’s expertise with the efficacy and quality of the skincare line. This allows for a higher perceived value and better pricing power than what is typically available with generic or well-known mass-market products.
3. Developing a Strong, Exclusive Brand
Developing a skincare line exclusive to a practice offers an exceptional opportunity to cultivate a strong brand identity. By aligning a skincare line with the values, image, and ethos of the practice, clinicians can create a unique experience for their patients. Some of the benefits include:
Brand Loyalty: Patients who trust their clinician for medical care are more likely to trust the products they recommend. By providing an exclusive skincare brand, practices can deepen their relationships with patients and build a sense of loyalty, resulting in repeat purchases.
Recognition and Authority: Offering a branded line of skincare products positions the practice as a leader in skin health. The brand can represent the clinician's expertise, offering a unique selling proposition that patients can't find elsewhere.
Additional Revenue Stream: Aside from treatment fees, private label skincare becomes an additional passive revenue source. The beauty of this model is that after initial investments in developing the product line, the ongoing sales become a low-maintenance revenue stream that requires minimal additional time or effort.
4. No Need to Compete with Amazon or Large Online Retailers
One of the most significant advantages of private label skincare for medical practices is the ability to avoid competing with giant online retailers like Amazon. In today’s digital world, many patients may purchase skincare products from large online platforms due to convenience, often opting for discounted or mass-market products. However, private label skincare evades this dilemma by creating a niche offering that’s exclusive to the practice.
Since the practice controls the distribution, it doesn’t have to worry about price wars with online giants. As a result:
Patients Remain Loyal: Patients who purchase from the practice know they are getting expert-recommended, high-quality products that are not available from big-box retailers.
Higher Profit Margins: By bypassing large e-commerce platforms, practices can retain a larger portion of the sale price rather than sacrificing margins to third-party retailers.
According to a report by Harvard Business Review, “The brands that win in today’s competitive market are those that build loyalty and meaningful relationships with their customers” (HBR, 2020). For clinicians, offering a private label skincare line is a powerful way to forge that bond with patients, providing them with a product that directly supports their treatment goals without the distraction of outside competition.
How to Get Started
1. Research & Formulation
Collaborate with Full Dose to create products that are tailored to your patients’ needs. Whether you’re aiming for anti-aging solutions, acne treatments, or sun protection, the formulations should align with the treatments you offer in your practice.
2. Branding
Develop a strong, consistent brand identity that reflects the ethos of your practice. From packaging to messaging, your private label skincare line should be recognizable and trusted.
3. Sales Channels
Start by offering the products in your practice and online store. Consider creating educational materials or offering free samples to encourage patients to try the products as part of their treatment plan.
4. Market & Promote
Use your established channels like email newsletters, in-office consultations, and social media to educate patients about the benefits of your skincare line and the importance of using products prescribed by their trusted clinician.
Conclusion
Creating passive revenue streams by dispensing private label skincare is a highly effective strategy for clinicians to increase income, build their brand, and enhance patient loyalty. By controlling the distribution, pricing, and development of a skincare line exclusive to the practice, clinicians can create a unique business model that avoids the intense competition from large online retailers like Amazon. Ultimately, this approach allows clinicians to provide their patients with high-quality products they trust, all while generating consistent and sustainable revenue.
References
“How Brands Can Build Loyalty in Today’s Competitive Market,” Harvard Business Review, 2020.
“The Growth of Private Label Brands,” Business Insider, 2021.
“Revenue Diversification in Medical Practices: Why It’s Crucial for the Future,” Medical Economics, 2022.