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How much do supplement companies make per bottle?

The answer to this will vary greatly depending on the company.

Plus you have to factor in all of the associated costs of operating a business in each bottle.
 
CryingEmo said:
3.50$ sounds about right.
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There are many factors at play. Operational issues (such as quality of ingredients, complexity of sourcing, self-manufacture or outsourced manufacturing, efficiency of manufacturing standards, and so on), distributional and logistic issues, marketing considerations (advertising type and channels, pricing policy including markup preferences, product positioning, price range of similar/competitive/substitute products), strategic issues (low-cost-strategy, differentiation-premium-strategy, and so on), and such like. In any case, the company is more likely to express its profit as a percentage of some reference value, and not as a static target such as $3.50 or whatever.
 
Sounds about right...$3.50 a bottle.

/except for Java Lather...we make $50 a bar.
 
Which I might add profit from bottles tends to get rolled back in to raw materials to make new batches and pay manufacturers to cap and bottle it.
 
Palo Alto Labs said:
I think we only make $3.48 per bottle... time for a company overhall.
brb.. Ill fire 4 people!
:dance:
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I would start with that Dave guy...I never see him doing anything.


Along this topic. I am really surprised more companies are not raising prices. Our UPS rates and the cost of all raws has gone up at LEAST 10% in the last 2 months due to fuel surcharges.
 
I beleive companies make a lot more than that, but it depends on how much they sell. There is probably a good 30-40%, but you gotta take all the advertizements employee costs, rent, etc..
 
dsade said:
I would start with that Dave guy...I never see him doing anything.


Along this topic. I am really surprised more companies are not raising prices. Our UPS rates and the cost of all raws has gone up at LEAST 10% in the last 2 months due to fuel surcharges.
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Fuel is mad expensive here. Costs me 50$ + to fill up my Toyota Echo!! :S
 
jjohn said:
Fuel is mad expensive here. Costs me 50$ + to fill up my Toyota Echo!! :S
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I thought those ran on Fairy Farts and Unicorn dung, and rainbows came out of the exhaust?
 
jjohn said:
Yeah it does, but I ate all the unicorns, the grocery store was out of chicken breasts :(
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AHA!!! Your secret - REVEALED!!

New from Molecular Nutrition - Unlock the Anabolic Secret of Unicorn Meat!! XX-Factor.

/Unicorns are so women...otherwise I woulc have called it XY-Factor
 
dsade said:
AHA!!! Your secret - REVEALED!!

New from Molecular Nutrition - Unlock the Anabolic Secret of Unicorn Meat!! XX-Factor.

/Unicorns are so women...otherwise I woulc have called it XY-Factor
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Uh Oh... Bill will be mad!! That was supposed to be announced in June.
 
3.50 profit, if you can move 5-10k units, that's not bad. That's like 15-30 K per year, per supp after everythings taken into account.


Damn, I need to get in this bussiness. Anyone wanna hire me? LOL
 
CryingEmo said:
50$ isn't bad.

What about atomic meltdown? How much napalm does it have in it?
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I wish we made $50 a bar off of a $5 product. :)

Napalm amount is proprietary...but I do not skimp.
 
Stragi said it best as dollar points are too variable to predict profit margins; any profit would be expressed as a percentage of overhead.
 
My family works in plastics. mostly forming and distribution, with some R&D. The cost isnt the product itself, you figure a normal sized bottle like p-plex cost 10-20 cents in bulk? Plus the caps inside add another 10-20 cents, being generous. The material its self is just chemical dust much akin to something like bayer, or tylenol. Obviously with different effects but in practical application they both effect the bodys natural systems in one way or another.

The real cost is in convincing us to take the supplements. Why do you think muscletech costs so much. It sure as hell isnt the ingredients, it's paying for all their "natural" athletes to say how protein powder and creatine got them to 300lbs at 5'10. The same goes for most of the companies we subsribe to, they need good advertising.

With regard to the designers its paying some chemist who couldnt get a job at DOW to synthesize a new analog that can fly under the radar for awhile.
 
the companies that advertise the most charge the highest prices. is price higher to pay for the advertising or do they have to advertise more to get people to buy the higher priced goodies?
 
they make most of their real money in the stores like gnc and vitamin shoppe, online is where they cut their profits but try to make it back in shipping, but hey i dont blame anybody for trying to get money
 
cokeholio said:
they make most of their real money in the stores like gnc and vitamin shoppe, online is where they cut their profits but try to make it back in shipping, but hey i dont blame anybody for trying to get money
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Only volume-wise.

Remember, this is how it usually works:

Manufacturer - pays all costs (development, raws, production, design, overhead, advertising)

Mfr sells to distributor (markup) who then sells to stores (more markup).

The price you see charged is WAY WAY more than any manufacturer makes on a product.
 
dsade, you wrote the book on the right way to do it. your reputation and credibility is all the advertising rpn needs. good products+good price= much respect.
 
I think alot of people would be surprised how little they make per bottle/jug. I wont say who but the basewholesale is 38.95 per jug, I can get my rep to get that down another 35-40%. Thats 30-40 off of wholesale. After that there really is not much left. I mean if major distributers can give my store 15-30% off wholesale(which is about half of MSRP) and they had to buy it from the manufacturer at lesser than 30% off of wholesale. It just does not leave all that much IMO.
 
pushinweightw said:
I think alot of people would be surprised how little they make per bottle/jug. I wont say who but the basewholesale is 38.95 per jug, I can get my rep to get that down another 35-40%. Thats 30-40 off of wholesale. After that there really is not much left. I mean if major distributers can give my store 15-30% off wholesale(which is about half of MSRP) and they had to buy it from the manufacturer at lesser than 30% off of wholesale. It just does not leave all that much IMO.
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nutra planet sells almost everything half off msrp.:hammer::woohoo: if gnc would drop their bogus advertising and lower prices they might get customers again. i won't hold my breath, it seems there is nothing but dumba$$'s running corporate america these days.
 
gnc wont be trying to compete with online retailers for a long time... gnc targets the people with less knowledge, and they make their bread
 
thebigt said:
nutra planet sells almost everything half off msrp.:hammer::woohoo: if gnc would drop their bogus advertising and lower prices they might get customers again. i won't hold my breath, it seems there is nothing but dumba$$'s running corporate america these days.
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Greedy dumba$$e$.
 
BigNutz; said:
Greedy dumba$$e$.
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It takes two to tango! As long as there are people willing to pay those prices, for whatever reasons, these so-called "dumba$$e$" will continue to prosper. And because the entire business is some type of a "zero-sum game" model, they will prosper at the expense of the less greedy types, to continue with the terminology.
 
strategicmove said:
It takes two to tango! As long as there are people willing to pay those prices, for whatever reasons, these so-called "dumba$$e$" will continue to prosper. And because the entire business is some type of a "zero-sum game" model, they will prosper at the expense of the less greedy types, to continue with the terminology.
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like john mellencamp say's 'just calling it your job ole hoss, sure don't make it right'. not aimed at you strategic, just the people running companies these days in all types of business. profit's at any cost has consequences.
 
thebigt said:
like john mellencamp say's 'just calling it your job ole hoss, sure don't make it right'. not aimed at you strategic, just the people running companies these days in all types of business. profit's at any cost has consequences.
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Don't agree. Businesses are run to make a profit. If people are willing to buy MuscleTech's stuff at GNC for exhorbitant prices - that's market driven business.

If people wouldn't buy it at those awful GNC prices - they prices would drop or companies would run out of business.

As Strategic said - takes 2 to tango.
 
jmh80 said:
Don't agree. Businesses are run to make a profit. If people are willing to buy MuscleTech's stuff at GNC for exhorbitant prices - that's market driven business.

If people wouldn't buy it at those awful GNC prices - they prices would drop or companies would run out of business.

As Strategic said - takes 2 to tango.
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muscle tech, great example. false advertising of what you can expect. plus, a proprietary blend of a ton of ingredients that are so underdosed they are irrelevant. got to admire them! they make lots of money so that makes it ok. btw- have you been in a gnc lately, not exactly full of customers, eh.
 
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