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dakotaben

04/21/12 7:35 PM

#20138 RE: Sandan #20131

A few problems:

1. The rate they are getting (assuming that the company in question is Musclepharm Sportswear) is 10%. You can get that rate from any old super expensive dropshipper selling one at a time. It is a horrible horrible rate. They are leaving 10s of percentage points on the table. They should be making MUCH more than 2.80 on a 28 dollar shirt. That is probably how much the actual shirt cost to make..... ok... special material.. $10. http://www.cafepress.com/cp/info/sell/index.aspx?area=intro_money&page=intro_money All IMO

2. There IS overhead (if it is Musclepharm sportswear that we are talking about). Customer service is basically through the Musclepharm Facebook page and twitter accounts. Not to mention.. all orders are placed on our website, so there is that overhead. ALL IMO

3. 10% when the apparel company is basically getting a HUUUUGE gimme is silly in my book. MSLP basically an advertising company and they are advertising the sportswear as well. ALL IMO

4. Drew is their buddy. This concerns me IF the company in question is Musclepharm Sportswear. I am not saying that there is something dubious going on there, but it sure seems like the potential for dubious going ons IS there. Who owns Musclepharm Sportswear? Are there partners? Does it seem odd that the dropshipping is being done by a completely separate company that has the same as the parent (if that is the case)? It is fishy as heck. ALL IMO.

I can even see your point about the dropshipping... but I would guess that they have way better options than 10%. They should be pulling WAY better margins than that when they are probably guaranteeing whoever does it millions in revenue.

I just have a tough time seeing where they came from in this deal. They were less than forthright about the entire thing and it seems that they may have disclosed something in the yearly.... but it certainly isn't very forthright either. As shareholders, I think we deserve to know a bit more.

Once again... I see positive things here and a movement in the right direction, but I think this needs to be addressed and the relationship between Musclepharm and Musclepharm Sportswear needs to be clearly outlined. It certainly could impact another company's desire to buy MSLP.

ALL IMO