I'm telling you, he has what I call a Besos complex with delusions of grandeur. Growth at any cost, only Brad is not Besos, who I really don't like anyway and Brad is just going to grow his company right into the ground as he was doing pre-Frost. He has learned nothing from being backed into a corner already once.
In the short run, I'd agree with you basebalplayr33. But if you are them and you truly believe that you have formulated a superior product set (or at least created something that can be viewed that way by others), you want to expose those products to as many newbies as possible.
And if the assessment of the usage stickiness (future brand loyalty) of the product is correct, you have created an ever growing future annuity. Once a sufficient base of users is established, a wise sr. management team can then cut back significantly on the frequency of the deep discounts, like the BOGO, finally providing a better gross margin. And when combined with the cost savings that will result from the new manufacturing consolidation, there could potentially be a very healthy gross margin in the near future.
Even with the relatively limited business background and business acumen that Brad has, I do think he is aware that if he were to focus almost exclusively on profitability, he could make it happen overnight. But I do not believe that he is willing to sacrifice (for the time being) top line growth for that profitability.
Back when this company was doing about 2-3 million per quarter in revenue, I expressed the belief that we were looking at the next Nike in the making. There have been a series of severe missteps along the way, but everything I see still confirms (to me) my early belief. And that is that Muscle Pharm will be the dominant force in the supplement space (and beyond).