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Re: Cobraman post# 6774

Thursday, 08/26/2010 12:56:59 PM

Thursday, August 26, 2010 12:56:59 PM

Post# of 64411
You keep blasting NPHC for not "firing" XCHO and replacing it with a "strong marketing company", but you neglect to either think about or post the following negative results should that happen:

1) NPHC would have to break the contract with XCHO, and since the details of the contract are spelled out in great detail on the XCHO IH board we all know that unless XCHO totally falls flat on it's face it will not be in violation, ergo the issue would almost certainly lead to lawsuits. I'd also expect restraining orders to be filed, one allowing XCHO to continue distributing Cobroxin, and one preventing NPHC from negotiating with a new distributor, until the court case is settled, a costly proposition for both cash-poor companies that would probably bankrupt both of them.

2) Even if NPHC succeeded in "firing" XCHO, it will take time, maybe a LOT of time, to find a new retail distributor for Cobroxin and get it up and running. In the meantime, NPHC gets zippy revenues from the only product that's funding the rest of it's activities - a financial disaster. H. Schein does not sell to retailers, so don't refute the above with them.

3) What distributor would feel safe negotiating with NPHC if they know that unreasonable and wildly overblown expectations on sales could lead to THEIR contract being terminated too?

4) Why would the existing (very large) retail store chains already in place put any trust in the continuing availability of Cobroxin for their precious shelf space if the supply gets disrupted?

5) A "strong marketing company" would almost certainly demand a much cheaper price for the Cobroxin purchased from NPHC because of their higher overhead rates and your expected bigger ad campaign. That means even lower revs for NPHC - again, a disaster.

Long and short of it, give up on the "Fire XCHO" theme until they are in blatant violation of the contract, you're beating a dead horse and I for one am tired of reading about it.