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Re: shore18 post# 34224

Tuesday, 02/12/2013 11:26:34 PM

Tuesday, February 12, 2013 11:26:34 PM

Post# of 92256
I've written about this issue a few times in the past. For a $3 product, we need to move massive amounts of it to make money. It needs to be in thousands, then tens of thousands of retailers.

For a $3 product:

--the manufacturer gets how much?
--the distributor gets how much?
--the retailer gets how much?

What does that leave us after those guys get a cut of our $3 product? Not much. It's a numbers game.

This type of retail strategy has already been mastered by 5hr Energy. There's no need for management to reinvent the wheel. IMO, management is courting disaster if they intend to position this as a niche product (Dick's, CVS, Walgreens only). It needs to be in mainstream distribution.