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From another board and from the owner of true Protien. [I]'m not vouching for these guys but I suspect this isn't the first time this has happened;
"Ive previously said Ive never seen as many shysters in this industry as Ive seen come along in this recession.
Im going to tell you a litte story (just because my disgust level is high right now)
A broker (who takes care of a slew of name brand companies you see out there on supplement store shelves and in magazines...companies that have been talked about on this and other boards far and wide, known NAME BRAND COMPANIES) contacts my business partner and I to custom manufacturer for him. I already make supplements for about 42 companies out there so this is the norm. Its a very rare case that any sparkly label retail supplement company makes their own products....its custom manufacturers like myself who do so, and they (retail supplement company) stick to the media marketing/advertising.........In the last year my business partner and I have seen this recession bring out the worst of the worst of business people to make a dollar.
He (broker for these many retail companies) wants hundreds of thousands of pounds of raw materials jugged, heatsealed, labeled, and shipped out to supplement stores or distributorships. Not a problem...thats what we do.
The profit margin on everything he wanted to do came out to 400 thousand dollars a month. Thats what he wanted to start out doing and then he wanted to ramp up even higher. He had lost his last custom manufacturer because they were shysters who got out of the shyster business and reformulated (a company that has been talked about on this board, other boards and has advertised on many boards over the last many years....some of you board owners probably know of whom i talk about as about 3 of you contacted me over the years and said "hey what the hell is up with these guys products, we are having serious stomach problems over here") .....I digress.
So we price everything out and this broker is good to go...he is excited. At the last minute before we start production he asks the question we have been getting alot of in the last year....."Heyyyyyyy, you guys know whats up.......lets do this, lets take out 25% of that (many dollar per pound) Isolate and lets put in (less than a buck) dextrose"........
Our reply, "yea we can do that but we are going to have to have you change the labels you sent over to apply because now the ingredient list is different."
Him: Naaa just leave the labels like they are, its good to go"
This has gone on for many weeks now with us absolutely refusing to put on his labels.....including a lengthy discussion between my business partner and I about all the particulars involving this company and our morals/values as a manufacturing company.
And then the ensuing argument/refusal with the broker/company which ended with turning this company/broker away.
Bottom line? We turned down 5 million dollars profit (at least) a year because we do the "right thing" over here. Im giving my business partner and myself a little pat on the back for that because TAKE IT TO THE BANK....the next custom manufacturer wont turn him away and a whole bunch of guys in this bodybuilding industry will be on bodybuilding boards raving about a "PROTIEN THAT TASTES FREAKING INCREDIBLE (ahhh good old dextrose) AND THE PRICE JUST CANT BE BEAT FOR "cough cough" 24 grams of protein per scoop
Would he have been my biggest client numbers wise? No, but its a good chunk of change.....but....allow myself a little pride of doing the right thing.
Its a very dog eat dog world out there right now (not only in supplement industry but every industry)...we got taken for 5 figures in 2008 and 5 figures in 2010 in deals involving "friends' in the bodybuildng industry that I gave a little leeway too....lessons learned.......
I ask everyone to be very wary and a educated consumer in this new year. "
"Ive previously said Ive never seen as many shysters in this industry as Ive seen come along in this recession.
Im going to tell you a litte story (just because my disgust level is high right now)
A broker (who takes care of a slew of name brand companies you see out there on supplement store shelves and in magazines...companies that have been talked about on this and other boards far and wide, known NAME BRAND COMPANIES) contacts my business partner and I to custom manufacturer for him. I already make supplements for about 42 companies out there so this is the norm. Its a very rare case that any sparkly label retail supplement company makes their own products....its custom manufacturers like myself who do so, and they (retail supplement company) stick to the media marketing/advertising.........In the last year my business partner and I have seen this recession bring out the worst of the worst of business people to make a dollar.
He (broker for these many retail companies) wants hundreds of thousands of pounds of raw materials jugged, heatsealed, labeled, and shipped out to supplement stores or distributorships. Not a problem...thats what we do.
The profit margin on everything he wanted to do came out to 400 thousand dollars a month. Thats what he wanted to start out doing and then he wanted to ramp up even higher. He had lost his last custom manufacturer because they were shysters who got out of the shyster business and reformulated (a company that has been talked about on this board, other boards and has advertised on many boards over the last many years....some of you board owners probably know of whom i talk about as about 3 of you contacted me over the years and said "hey what the hell is up with these guys products, we are having serious stomach problems over here") .....I digress.
So we price everything out and this broker is good to go...he is excited. At the last minute before we start production he asks the question we have been getting alot of in the last year....."Heyyyyyyy, you guys know whats up.......lets do this, lets take out 25% of that (many dollar per pound) Isolate and lets put in (less than a buck) dextrose"........
Our reply, "yea we can do that but we are going to have to have you change the labels you sent over to apply because now the ingredient list is different."
Him: Naaa just leave the labels like they are, its good to go"
This has gone on for many weeks now with us absolutely refusing to put on his labels.....including a lengthy discussion between my business partner and I about all the particulars involving this company and our morals/values as a manufacturing company.
And then the ensuing argument/refusal with the broker/company which ended with turning this company/broker away.
Bottom line? We turned down 5 million dollars profit (at least) a year because we do the "right thing" over here. Im giving my business partner and myself a little pat on the back for that because TAKE IT TO THE BANK....the next custom manufacturer wont turn him away and a whole bunch of guys in this bodybuilding industry will be on bodybuilding boards raving about a "PROTIEN THAT TASTES FREAKING INCREDIBLE (ahhh good old dextrose) AND THE PRICE JUST CANT BE BEAT FOR "cough cough" 24 grams of protein per scoop
Would he have been my biggest client numbers wise? No, but its a good chunk of change.....but....allow myself a little pride of doing the right thing.
Its a very dog eat dog world out there right now (not only in supplement industry but every industry)...we got taken for 5 figures in 2008 and 5 figures in 2010 in deals involving "friends' in the bodybuildng industry that I gave a little leeway too....lessons learned.......
I ask everyone to be very wary and a educated consumer in this new year. "
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