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Supplements going up 1st March

Android

By Android
in Diet & nutrition

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Android Veteran member

Android

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Got some bad news for supplement buyers today.

The NZ Distrubutor for Gaspari, BSN, Nutrex, MHP, Inner Armour, Cellucor has been receiving too many complaints about online retailers selling supplements at competitive prices.

To avoid a client-backlash they have introduced a minimum-lower price strategy effective 1st March. Effectively price-fixing to protect struggling retailers in a recession.

This means all of these products will go up in price NZ-wide. The minimum has yet to be set but it's likely to be an extra $12-$15 on top of the cheapest Superpump250 available.

:shock: Kind of sad that it's a controlled market now

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Android Veteran member

Android

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It's just the imported products mentioned above.

Until something comes forward in writing it's safe to say I'm not going to adhere to verbal requests for price-fixing just because some online retailers have noticed a downturn in their sales :pfft:

business is business

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Flex Senior member

Flex

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Got some bad news for supplement buyers today.

The NZ Distrubutor for Gaspari, BSN, Nutrex, MHP, Inner Armour, Cellucor has been receiving too many complaints about online retailers selling supplements at competitive prices.

I think you mean "selling supplements at a loss".

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Flex Senior member

Flex

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I think you mean "selling supplements at a loss".

Can you expand on this? Which products are they selling at a loss and what is the business proposition behind it?

I'm not their accountant so I can't tell you the finer details.

Maybe some of them are getting better prices than I think they are. I'm sure they are shifting a fair amount of volume, but as far as I can tell from the prices some products are being sold for at some stores there can't be much profit left over once gst, credit card/bank fees, and freight charges are factored in. Not to mention wages if you want to pay yourself or someone else, web hosting/maintenance, phone/internet, advertising, rent, insurance blah blah blah. Cashflow doesn't always equal profit.

I see for some reason Shotgun no longer offers their price matching 5% off deal?

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Flex Senior member

Flex

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What a crock of shit, that would be like dicksmith complaining that you a get a 42'' tv on trade me for half the price.

I reckon people will be cutting down on supps altogether, as opposed switching from retail to online.

Thanks for the heads up.

I'm sure they do - that's why most official brand distributors won't supply online only stores - you have to be a bricks and mortar too to get accounts with the decent big brands. Plus many brands won't cover warranty claims on items bought on websites like trademe and ebay in an effort to try and cut down on parallel importing and cut price products.

A bit off tangent but with the amount of counterfeit good available from china I'd hesitate to buy any new electronic goods off TradeMe - especially not iPods. You'll get it cheap but it might not be the real deal as Noel has a habit of saying.

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bj powerL Member

bj powerL

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Yeah I support Flex on this one as someone who has extended family members who have a health business I know what sort of impact the cut throat prices have on them and their staff.

Those online stores grabbing others business just to make $3 off a tub don't realise the sort of impact on others it has. Yeah some are selling at a loss too :doh: As a customer you just want the best deal, understand that too. Since it only applies to those brands mentioned the rest will even out

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Marcus Senior member

Marcus

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From a business owner standpoint (not in the supplement industry) I think a bit of control is good. Everyone wants to build more margin into their business.

From the consumer standpoint this means maybe reverting to the prices we once used to pay for supplements.

I'm not too familiar with the supplement industry but it seems the suppliers are too quick to offer new companies competitive purchasing power?

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Dragon Member

Dragon

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The way things have slowed in Christchurch it looks like everyone has cut back on buying supps from the shops.

Maybe we now hunt deals online or buy our powder direct from Eat Me and the like, but I think people are just buying less at the moment.

Not surprised that suppliers are quick to send stock to every new online retailer that pops up – suppliers will be hurting in this recession too.

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modandm Junior member

modandm

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what did i say about online stores and their business model being destined for failure....

If you don't comply with distributors MSP's you wont get a volume discount or you just won't be supplied at all.

Regarding wholesale prices

I noticed wholesale whey prices from Fonterra are up and up on increased demand worldwide. Even with the drop in milk don't expect a drop in protein prices anytime soon.

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ohjoshua Veteran member

ohjoshua

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I think you mean "selling supplements at a loss".

Can you expand on this? Which products are they selling at a loss and what is the business proposition behind it?

I'm not their accountant so I can't tell you the finer details.

Maybe some of them are getting better prices than I think they are. I'm sure they are shifting a fair amount of volume, but as far as I can tell from the prices some products are being sold for at some stores there can't be much profit left over once gst, credit card/bank fees, and freight charges are factored in. Not to mention wages if you want to pay yourself or someone else, web hosting/maintenance, phone/internet, advertising, rent, insurance blah blah blah. Cashflow doesn't always equal profit.

I see for some reason Shotgun no longer offers their price matching 5% off deal?

exactly...

more efficent bussinesses have less overheads (online sup stores)

why should they be penalised for this (they still may freight and GST) price fixing is anti-competitive. Its very short sighted and everyone (consumer and distributer) will be better off in the long run with out it.

Any one who has studied economics will know how gov attempts to fix prices have worked in the past...

Possible exceptions are are prestiage goods/serives where the supplier wants to maintain a high level of preceived value with its consumers. Stil in this situation Suppliers can choose who they distribue too (eg high class sup stores only)

If you want to feel good about yourself go buy a snazy packet from a snazy sales person... If you want whey protein for $ then read the nutritional infomation and make an informed decision.

ps I know I cant spell... no spell check on this com.

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