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Wednesday, January 11, 2012 12:08:42 PM
First off, Musclepharm products are not going in Walmart. MMA Elite products are "targeting Walmart" and they are "powered by Musclepharm" whatever that means.
Targeting to me means they are trying to get Walmart to carry them. "Powered by Musclepharm" to me means there will be some type of licensing deal between MMA Elite and Musclepharm. Musclepaharm have given no details on this at all.
Let's say that MMA Elite gets their products in Walmart. It's a fact that margins will be razor thin. That's how Walmart works. So the royalty payment to Musclepharm, if that's what this is, will be based off of a razor thin profit margin.
I personally don't think we'll see the products in Walmart anytime soon. I think it's very similar to the Medicaid fluff - they were "two weeks from approval" about a year ago. I could be wrong so let's mark this post and see. According to some posting on here, products will be in Walmart in the next 2 to 4 weeks. Let's see.
Now if products actually do get in Walmart I think the razor thin margins that will split between MMA Elite will have minimal impact on revenue. Could be a drain. Since Musclepharm are always vague about their finances it will be hard to tell.
I hope I'm wrong but based on previous actions by Musclepharm I don't think I am.
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