How to Choose Private Label Suppliers for Your AgriTech Business
The agriculture industry is advancing at a rapid pace thanks to new startups in the AgriTech business. Just as many FinTech companies disrupted the financial world, AgriTech startups are bringing new approaches, better technologies, and innovative products to the landscape. The demand for new products and solutions is high; now is the best time to venture into AgriTech and start your own business.
The easiest way to get there is by working with a reliable private label supplier (or suppliers). Rather than investing in manufacturing and product packaging, your business can focus on the technology side of things and deliver the best solutions to potential customers in an agile way. Before you can use this approach, however, you need to find reliable suppliers to work with. Here are the things you need to know about choosing private label suppliers.
Look for Experience
One of the first things to look into when choosing private label suppliers for your AgriTech business is experience. In the agriculture industry, experience is the most valuable currency. You want a manufacturing partner that knows the industry well, and one with sufficient experience in specific fields.
Companies like AmegA Sciences have been in the business long enough to understand the market and well. In the case of AmegA, this private label company has been developing innovative products for more than 40 years. They already have an established and capable manufacturing line and a forward-thinking R&D department to support your new venture.
It is easy to see how the experience of your private label supplier can support your new business. Rather than spending years trying to figure out the market, you can benefit from the experience your manufacturing partner already has in order to gain a better understanding of the market and the industry as a whole.
Explore Product Ideas
Instead of selling existing products under a new brand, find private labeling suppliers that are willing to work with you in developing new and exciting products for the market. You want suppliers and manufacturing partners who work in specific fields and manufacture products that deliver value to the end customers. That’s how you gain an edge in this market.
Products such as wetting agents and fertilizers can be tweaked to produce different results; this is where the strong R&D team and plenty of experience we discussed earlier come in handy. Since your main task is focusing on the technology side of the business, you start with that and find products that integrate well with the solutions you are trying to deliver to the market. Look at online forums and social media groups to highlight common issues and demands, then use your supplier’s expertise to fix them.
You must also explore complementary products that help expand your product line further. As a new AgriTech company, having an extensive product catalog is one of the ways you can build strong credibility in a short period of time. An extensive product catalog certainly widens your target market and allows you to be more creative with marketing your products.
Depending on how many resources you want to invest in production and delivery, you can also look into aspects such as delivery network and production capacity. The best partners in the agriculture sector are those who will help you scale up rather than weigh you down early in the business. With the right partner, you can start with small batches of products and expand as your market grows.
Some companies, especially experienced ones, also have an established distribution network that you can use early in the business. Rather than worrying about how to get the products closer to your target markets, you can simply identify those markets and have the private label supplier handle the hard work for you.
The final ingredient that separates great private label suppliers from the rest is a long-term commitment. You need a manufacturing partner that is more interested in forging a strong and mutually-beneficial relationship rather than making a quick sale. This is something that you can identify the more you compare viable suppliers on the market.
When you need to produce agrochemical products, for instance, you want a supplier that will not only develop the right products for your market and handle manufacturing and distribution, but also a supplier that will help you listen to customer feedback and improve the products further. This type of relationship will give you more room to grow, all the while offering sustainability for your business.
Of course, you also have to look into other common factors such as pricing structure and terms of the partnership. However, the four fundamental elements that we discussed in this article are important if you are looking for a reliable private label supplier for your AgriTech business. A capable supplier makes all the difference; invest your time in finding the right one to work with and you will find penetrating the agriculture sector to be easy and rewarding.