Validora
Methodology v2.1

How Validora Works

We compare what supplements actually cost to make against what you pay at retail. Here's exactly how we do it.

01
Factory pricing
02
Add overhead
03
Add packaging
04
Compare retail
05
Score & tier

What do you measure?

Active ingredient cost versus retail price. Nothing else.

Validora calculates what the active ingredients in a supplement actually cost at factory-gate pricing, then compares that number to what you pay at retail.

We don't measure taste, branding, convenience, or customer service. We measure one thing: ingredient value per dollar spent.

How is cost calculated?

The Formula
Manufacturing Cost =
(Ingredient Cost × 1.5) + Packaging
Ingredient Cost
Factory EXW price × total grams in the product
× 1.5 (50% overhead)
Covers testing, GMP compliance, QC, processing
+ Packaging
Estimated bottle, cap, label, and seal
The resulting markup percentage is calculated as:((Retail − Mfg) ÷ Mfg) × 100

What is the 50% overhead?

Published supplement manufacturing data shows raw materials represent 40–60% of COGS. Converting that range to overhead relative to ingredient cost:

Industry Data → Overhead
Ingredients = 60% COGS
40÷60 =
67%
Ingredients = 50% COGS
50÷50 =
100%
Ingredients = 40% COGS
60÷40 =
150%
Validora uses
conservative
50%

Note: 50% is intentionally below the documented range of 67–150%. This means Validora gives brands more overhead credit than industry data strictly supports — preventing the model from being unfairly punitive.

What do the tiers mean?

Every product is assigned a value tier based on its markup percentage. This lets you compare products at a glance.

★★★★★
Extreme Value
Factory-near pricing
0–300%
★★★★☆
Good Value
Fair retail margin
300–550%
★★★☆☆
Fair Value
Industry standard
550–900%
★★☆☆☆
Poor Value
High markup
900–1600%
★☆☆☆☆
Excessive
Very high markup
1600%+

How is the score built?

The overall score is a weighted average of four categories. Pricing carries the most weight since it's our primary mission.

30%
Pricing Score
Markup vs. factory cost
30%
Dosing Score
Clinically effective doses vs. label
20%
Transparency Score
Label clarity, no proprietary blends
20%
Quality Score
Third-party testing, certifications
30%
30%
20%
20%
Pricing Dosing Transparency Quality

What does Validated mean?

7.0
minimum score
A product scores Validated when its overall score reaches 7.0 or above. This means it passes our combined assessment of pricing fairness, dosing accuracy, label transparency, and quality signals.
≥ 7.0
✓ Validated
Passes thresholds
< 7.0
✗ Not Validated
Below threshold

Where do prices come from?

2
verified supplier quotes
per ingredient, from Alibaba Gold or Made-in-China
100kg
MOQ target
standardized quantity for all quotes
EXW
factory-gate pricing
before freight or import duties
Median
reference price
midpoint of collected quotes
90 days
spot-check monitoring
15% variance triggers re-validation

Our prices are intentionally conservative

We source ingredient prices at 100kg MOQ — far smaller than what established supplement brands actually purchase. Brands buying at scale receive significant volume discounts:

100kg (our quotes)Baseline
500kg10–20% lower
1,000kg+20–35% lower
5,000kg+ (major)35–50% lower

This means Validora's cost estimates give brands the benefit of the doubt. Real markups at scale are likely higher than what we show — not lower.

What isn't scored?

Validora has a deliberate scope. These things are real but outside our model:

Taste and palatability(Subjective)
Brand reputation(Separate from quality)
Delivery format(User preference)
Shipping speed(Service layer)
Bioavailability(Needs clinical data)
Long-term efficacy(Outside scope)

On delivery formats: Gummies, softgels, and powders all use the same ingredient pricing. Format affects convenience, not ingredient cost. Products can be filtered by format for apples-to-apples comparisons.

For technical reviewers

Technical Appendix

Full overhead derivation, EXW rationale, rounding standards, sourcing protocol, and methodology version history.

View appendix →

Methodology Version: 2.1 (February 2026)

Core criteria and thresholds are frozen. Minor clarifications may occur.