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Thread: Sponsor Margins

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    Sponsor Margins

    I've read through the terms and conditions and the pricing thread and there was no mention of margins...



    What do people think is a reasonable margin for sponsors to be adding for gear?

    I've been having a quick look at various sponsors websites and it seems the markup between the manufacturer's price and the retail price is extremely high.

    Without naming names (obviously), I'm interested to see what the consumers think is reasonable, given the type of product it is and the risk that goes along with it?

    All I will say is some of the retail prices of products I have seen have 2000% margin on the factory price when comparing MOQs


    RB

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    Price and profits seem to be whatever the market will bear.
    Something is worth whatever someone is willing to pay for it.
    If someone will pay $100 for a product that's what it will sell for.
    Don't get me wrong, lower prices are always welcome but as far as a profit margin goes, you got me, I don' t know.
    If you're thinking of becoming a sponsor, I'd be interested to know what you think is a reasonable margin.
    I've had very pleasant experiences in my dealings with board sponsors and yes, price is a major factor in my decision.
    I will be interested in seeing what kind of responses you get to this thread.
    Welcome to IMF.
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    U get what u pay for

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    I source product for a living in China, and while I am tempted by the margins I have been successful because I understand deeply the industry I am in. I do not understand the pharmaceutical industry.

    Bodybuilding is a passion of mine and I have access to free gear for personal use because of connections I have made. I was however asked as a favor to find a product as a one off and was intrigued as to why my friend was after raw powder rather than finished product.

    The amount of information and time spent by various contributors in the homebrew section; helping others get started, posting new techniques and assisting with problems for little personal gain is impressive. So I hope these same people who are helping others aren't paying excessive amounts.

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    Quote Originally Posted by Riotbull View Post
    I source product for a living in China, and while I am tempted by the margins I have been successful because I understand deeply the industry I am in. I do not understand the pharmaceutical industry.

    Bodybuilding is a passion of mine and I have access to free gear for personal use because of connections I have made. I was however asked as a favor to find a product as a one off and was intrigued as to why my friend was after raw powder rather than finished product.

    The amount of information and time spent by various contributors in the homebrew section; helping others get started, posting new techniques and assisting with problems for little personal gain is impressive. So I hope these same people who are helping others aren't paying excessive amounts.
    This is a community. We look out for each other.

    Sponsors pay to advertise on the boards.
    The needle tears a hole, The old familiar sting...Trent Reznor
    My mom thought I'd just fade away and go write the Great American Seedy Disgusting Perverse Novel. Instead he's writing songs like "You must keep pepper in your pussy to act this mean"...Chris Robinson of The Black Crowes


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    Quote Originally Posted by fsdsob View Post
    Price and profits seem to be whatever the market will bear.
    Something is worth whatever someone is willing to pay for it.
    If someone will pay $100 for a product that's what it will sell for.
    Don't get me wrong, lower prices are always welcome but as far as a profit margin goes, you got me, I don' t know.
    If you're thinking of becoming a sponsor, I'd be interested to know what you think is a reasonable margin.
    I've had very pleasant experiences in my dealings with board sponsors and yes, price is a major factor in my decision.
    I will be interested in seeing what kind of responses you get to this thread.
    Welcome to IMF.
    If price is as ethical as supply and demand, we should all be selling Antibiotics in Africa.

    Exaggerations aside, what is your opinion on margins?

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    Just to reiterate I'm not having a go at sponsors,

    I'm asking what people think is a reasonable markup, for instance 300%

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    Quote Originally Posted by Riotbull View Post
    I source product for a living in China, and while I am tempted by the margins I have been successful because I understand deeply the industry I am in. I do not understand the pharmaceutical industry.

    Bodybuilding is a passion of mine and I have access to free gear for personal use because of connections I have made. I was however asked as a favor to find a product as a one off and was intrigued as to why my friend was after raw powder rather than finished product.

    The amount of information and time spent by various contributors in the homebrew section; helping others get started, posting new techniques and assisting with problems for little personal gain is impressive. So I hope these same people who are helping others aren't paying excessive amounts.
    u

    i'm having a difficult time believing that you're involved in UGL product sourcing in that country when you type as if you're an American with nearly perfect wording and penmanship as if English is really your first language OR is your ONLY LANGUAGE...not even Google Translate will come out perfect like you've typed...

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    Quote Originally Posted by irish_2003 View Post
    u

    i'm having a difficult time believing that you're involved in UGL product sourcing in that country when you type as if you're an American with nearly perfect wording and penmanship as if English is really your first language OR is your ONLY LANGUAGE...not even Google Translate will come out perfect like you've typed...
    will this suffice? View image: photo (5)

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    Quote Originally Posted by Riotbull View Post
    Just to reiterate I'm not having a go at sponsors,

    I'm asking what people think is a reasonable markup, for instance 300%
    I didn't take it that you were having a go at the sponsors.
    You simply are trying to get an easy answer to a difficult question.
    Difficult for anyone who hasn't sold this type of product.
    What do you believe is fair?
    I am not being facetious I just don't know what to tell you.
    As far as ethical? Just look what the drug companies charge for name brand stuff.
    And when it comes to the antibiotics I'm sure they can use them in Africa.
    I could use some myself. Ran out during my last bout of pneumonia.
    If you have access to those, PM me after you reach 10 posts.
    I'll talk more with you when we can speak privately.
    The needle tears a hole, The old familiar sting...Trent Reznor
    My mom thought I'd just fade away and go write the Great American Seedy Disgusting Perverse Novel. Instead he's writing songs like "You must keep pepper in your pussy to act this mean"...Chris Robinson of The Black Crowes


  12. #12
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    Quote Originally Posted by irish_2003 View Post
    u

    i'm having a difficult time believing that you're involved in UGL product sourcing in that country when you type as if you're an American with nearly perfect wording and penmanship as if English is really your first language OR is your ONLY LANGUAGE...not even Google Translate will come out perfect like you've typed...
    I don't know the OP. I do know from my travels there are many Occidentals in China. There are also may Chinese with western educations.
    OP may not even be Chinese but just living there. I do agree his English is spot on. Certainly not run through translation software.
    Most probably American but IDK for sure.
    irish_2003 likes this.
    The needle tears a hole, The old familiar sting...Trent Reznor
    My mom thought I'd just fade away and go write the Great American Seedy Disgusting Perverse Novel. Instead he's writing songs like "You must keep pepper in your pussy to act this mean"...Chris Robinson of The Black Crowes


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    I have to do more research before I pass comment.

    My initial judgement is that the majority of the risk is held with the buyer and the manufacturer and not the supplier. My other issue are changes in legislation in China which have made it more difficult for factories to produce steroids legally. Some are no longer GMP certified because they have switched from formally producing steroids for humans to animals in order to mitigate the risk of crackdown. While I am optimistic this has not affected quality it's something the consumer probably doesn't know about.

    Once again this is not my industry and my sample size is rather small to comment on. I also think there are a lot of good reps and companies out there who do a good job, based on what I have seen browsing through forums.

    However sponsors who are essentially just a b2b business tagging on 1000-2000% as it passes through other peoples hands doesn't sit as well for me.

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    Quote Originally Posted by fsdsob View Post
    I don't know the OP. I do know from my travels there are many Occidentals in China. There are also may Chinese with western educations.
    OP may not even be Chinese but just living there. I do agree his English is spot on. Certainly not run through translation software.
    Most probably American but IDK for sure.
    I'm an expat.

    View image: image

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    10th post.

    It's very late here, but if you have any private questions i think you can PM me now and I'll answer tomorrow.

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    Quote Originally Posted by Riotbull View Post
    I have to do more research before I pass comment.

    My initial judgement is that the majority of the risk is held with the buyer and the manufacturer and not the supplier. My other issue are changes in legislation in China which have made it more difficult for factories to produce steroids legally. Some are no longer GMP certified because they have switched from formally producing steroids for humans to animals in order to mitigate the risk of crackdown. While I am optimistic this has not affected quality it's something the consumer probably doesn't know about.

    Once again this is not my industry and my sample size is rather small to comment on. I also think there are a lot of good reps and companies out there who do a good job, based on what I have seen browsing through forums.

    However sponsors who are essentially just a b2b business tagging on 1000-2000% as it passes through other peoples hands doesn't sit as well for me.
    That is understood.
    As far as our sponsors here, I don't know how far removed they are from the source.
    Someone who is four times removed from a source will have higher cost than someone twice removed and so on.
    The more times a product changes hands the higher the cost to the end user.
    Prices that seem unreasonable to you and I may be just fine with someone who is happy with the level of service, discretion and reliability provided by that sponsor.
    Not to mention quality. There is so much underdosed or no dosed product out there. More so than ever before.
    There are those who claim their products are over dosed.
    I for one, want my gear to be accurately dosed. If someone says their product is over dosed I want to know by how much. You need to know the actual dosage of any product and the only thing you have to go by is what the seller has to say.
    If a seller has a reputation of accurately dosed products his prices will most likely reflect that.
    I own several businesses and have owned many more in the past.
    I sell on eBay as well. Sometimes I make 10%, sometimes I make 200% and sometimes I may lose money.
    As I said before, something is worth what someone else will pay for it.
    A new sponsor/seller can't expect to get high prices for their "items." That comes with reviews of quality, service and reliability.
    The needle tears a hole, The old familiar sting...Trent Reznor
    My mom thought I'd just fade away and go write the Great American Seedy Disgusting Perverse Novel. Instead he's writing songs like "You must keep pepper in your pussy to act this mean"...Chris Robinson of The Black Crowes


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    It costs LESS than 10% of the retail price to produce at the very least I've seen, some sponsors sell for many more than 10x the actual manufacturing cost

  18. #18
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    Quote Originally Posted by Riotbull View Post
    10th post.

    It's very late here, but if you have any private questions i think you can PM me now and I'll answer tomorrow.
    You need to make sure you choose to accept private messages from "members" on your "settings" page.
    My PM came back to me.
    The needle tears a hole, The old familiar sting...Trent Reznor
    My mom thought I'd just fade away and go write the Great American Seedy Disgusting Perverse Novel. Instead he's writing songs like "You must keep pepper in your pussy to act this mean"...Chris Robinson of The Black Crowes


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    fixed

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    Quote Originally Posted by Riotbull View Post
    10th post.

    It's very late here, but if you have any private questions i think you can PM me now and I'll answer tomorrow.
    Yeah I bet you'd prefer PMs at this point, after you pretty much advertised that you can get mountainloads of anything. I always ask for PMs when it gets late, because why share things in a community environment when you're on a message board - like it was meant to share information or some shit, oh yeah, because you're drumming up business! I nearly forgot except for the blatant clues you left everywhere.

    Since dealing is a felony in this country, and certain drugs can get you the death penalty in other countries, how do you put a dollar value on that? The profit margin is high on almost all illegal items - because by their nature there is risk involved.
    irish_2003 likes this.
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    Quote Originally Posted by Paranoid Fitness View Post
    You need to make sure you choose to accept private messages from "members" on your "settings" page.
    My PM came back to me.
    Maybe he'll give you a discount for helping get his business communications going, since he can't seem to do it himself.
    Motivation Bench form Charles Poliquin When I let go of what I am, I become what I might be. Lao-Tzu

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    Quote Originally Posted by Riotbull View Post
    fixed
    For some reason the PMs not going through.


    You've got mail...
    Last edited by Paranoid Fitness; 11-09-2012 at 01:04 AM.
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    My mom thought I'd just fade away and go write the Great American Seedy Disgusting Perverse Novel. Instead he's writing songs like "You must keep pepper in your pussy to act this mean"...Chris Robinson of The Black Crowes


  23. #23
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    Quote Originally Posted by Mudge View Post
    Yeah I bet you'd prefer PMs at this point, after you pretty much advertised that you can get mountainloads of anything. I always ask for PMs when it gets late, because why share things in a community environment when you're on a message board - like it was meant to share information or some shit, oh yeah, because you're drumming up business! I nearly forgot except for the blatant clues you left everywhere.

    Since dealing is a felony in this country, and certain drugs can get you the death penalty in other countries, how do you put a dollar value on that? The profit margin is high on almost all illegal items - because by their nature there is risk involved.

    As I previously stated many sellers are not located within the United States and are simply operating as a b2b between the consumer and manufactuer, so there is no risk. Suppliers recieve money internationally and send product internationally without ever ingadging the product, but tag on 1000%-2000% margin. I think you can agree the supplier hardly has the most risk in this scenario.

    I didn't ask to be sent PMs, Paranoid Fitness asked to send me a message and I was simply replying to him. Like I said in my second post, I do not understand the pharamacutical industry and I have no intention of selling.

    If you want to assume that because I live in China and I like bodybuilding I must want to sell steriods thats fine, but I don't believe I broke any of the terms and conditions of this forum. I was only interested (and still am) in what other people on this forum thought were fair and reasonable margins. If this is something you don't discussed so be it.

    RB

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