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Turning down 5 million dollars a year....

DOGGCRAPP

Featured Member / Kilo Klub
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Ive previously said Ive never seen as many shysters in this industry as Ive seen come along in this recession.

Im going to tell you a litte story (just because my disgust level is high right now)

A broker (who takes care of a slew of name brand companies you see out there on supplement store shelves and in magazines...companies that have been talked about on this and other boards far and wide, known NAME BRAND COMPANIES) contacts my business partner and I to custom manufacturer for him. I already make supplements for about 42 companies out there so this is the norm. Its a very rare case that any sparkly label retail supplement company makes their own products....its custom manufacturers like myself who do so, and they (retail supplement company) stick to the media marketing/advertising.........In the last year my business partner and I have seen this recession bring out the worst of the worst of business people to make a dollar.

He (broker for these many retail companies) wants hundreds of thousands of pounds of raw materials jugged, heatsealed, labeled, and shipped out to supplement stores or distributorships. Not a problem...thats what we do.

The profit margin on everything he wanted to do came out to 400 thousand dollars a month. Thats what he wanted to start out doing and then he wanted to ramp up even higher. He had lost his last custom manufacturer because they were shysters who got out of the shyster business and reformulated (a company that has been talked about on this board, other boards and has advertised on many boards over the last many years....some of you board owners probably know of whom i talk about as about 3 of you contacted me over the years and said "hey what the hell is up with these guys products, we are having serious stomach problems over here") .....I digress.
So we price everything out and this broker is good to go...he is excited. At the last minute before we start production he asks the question we have been getting alot of in the last year....."Heyyyyyyy, you guys know whats up.......lets do this, lets take out 25% of that (many dollar per pound) Isolate and lets put in (less than a buck) dextrose"........
Our reply, "yea we can do that but we are going to have to have you change the labels you sent over to apply because now the ingredient list is different."
Him: Naaa just leave the labels like they are, its good to go"

This has gone on for many weeks now with us absolutely refusing to put on his labels.....including a lengthy discussion between my business partner and I about all the particulars involving this company and our morals/values as a manufacturing company.

And then the ensuing argument/refusal with the broker/company which ended with turning this company/broker away.

Bottom line? We turned down 5 million dollars profit (at least) a year because we do the "right thing" over here. Im giving my business partner and myself a little pat on the back for that because TAKE IT TO THE BANK....the next custom manufacturer wont turn him away and a whole bunch of guys in this bodybuilding industry will be on bodybuilding boards raving about a "PROTIEN THAT TASTES FREAKING INCREDIBLE (ahhh good old dextrose) AND THE PRICE JUST CANT BE BEAT FOR "cough cough" 24 grams of protein per scoop

Would he have been my biggest client numbers wise? No, but its a good chunk of change.....but....allow myself a little pride of doing the right thing.

Its a very dog eat dog world out there right now (not only in supplement industry but every industry)...we got taken for 5 figures in 2008 and 5 figures in 2010 in deals involving "friends' in the bodybuildng industry that I gave a little leeway too....lessons learned.......
I ask everyone to be very wary and a educated consumer in this new year.
 
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This is why I will continue to promote your products to all of my friends and family. Not only because I know the quality of your products first hand, but because I know it's run by good guys like you. Also the only protein supplier I use.

Keep up the honest work Dante.

I agree with you on the shysters...SO many shady people out there willing to compromise others for money and its seem to come out more and more due to this shit-hole economy. Quite sad....
 
I am struggling now with a similar decision I made in my industry , a chemical related.
my view was not only the moral issues but the legal as well.
we could use the cashflow , but not at any cost.
 
Thank you Tmuscle

And huge respect for that Aussie.
 
Alot of respect to you Dante:headbang: dont no if i could turn down that kind of money though sorry:D
 
Much props to you DC for doing the right thing
 
Dante, cudos for having integrity. Takes a lot of moral fiber to turn down a large sum of profit like that.

My question for you though is this: how can we be better educated consumers? If the places that make the supplements are mislabeling the product how can we actually know that? I don't see how it's possible?

Don't get me wrong, I already buy 85% of my supplements from TP, but for someone who for whatever reason want's to buy the shiny jugs. How can they know what they are getting?

To play devils advocate(I don't believe this at all), how do we even know what TP sell us is as labeled? If I make a custom mix up, or buy x amount of lbs of isolate I'm still taking your word that it has say 26g of protien per serving.

I guess MY answer to that is trust. I trust True Protein because of the rep that you guys have, and I've used your products and many other people have and vouch for them.

Thoughts? Opinions?
 
you know Dante, the statement "how can he live with himself" will never apply to you. it is my pleasure to be associated with you through ProMuscle.
 
That's what makes this board so valuable to a person like me. I used to subscribe to the theory that all protein powders were essentailly the same. Like most uninformed people I made my choices based on flavor and not ingredients. To Dante, and the many other very knowledgeable members of the community, keep the info flowing.

RP
 
Business Ethics hard to find in america these days. another reason to love TP


isn't that illegal to sell a product that is different than the label? I thought that is why we have the FDA
 
Huge respect for you for that decision Dante. You know, in the end, what goes around comes around.
 
Dante,

All I can say is WOW!! 99% of people in this world would have taken the money without a moments hesitation. I Am Impressed with you and your partners choice on doing the right thing, and maintaining INTEGRITY, and HONOR! We need more people like yourself in this world. Keep it up man...:headbang:
 
Im waiting for protein powder (Made with cold processed Whey Protein from GRASS FED cows that are not hormonally treated) from True Protein.. Hope you guys start carrying some..
 
::ction-sm
 
Awesome!

So fantastic to hear something like this sir. Just when you start to question whether everyone out there is trying to make a quick buck off of you, we get enlightened by a story like this. You made a decision for the future, the long-term. The counterpart was myopic in their decisions and will eventually fail for it.

Well done!
 
Your a rare breed brother, one that deserves great respect. If only all would adhere to this level of moral character...we'd be in a lot better place and situation as a whole. What you have is something that money or anything else can replace...thank you for sharing.
 
Integrity.......feels good to know some people and companies still have it!!!

Thanks guys...
 
while it may seem that you lost initially, i think you will actually gain in the end by sharing the story on the boards. great marketing. dont get me wrong, im not saying this is some marketing ploy, you should share this info with the consumers...we need and want to hear it. just saying that it def adds power to your brand, so not only was it the right decision morally, but it may also be the right decision for your business. kudos to you. i respect true protein even more so after reading that. in an industry full of bull shit, a lot of us on the boards depend on TP for quality products, thanks for not letting us down.
 
What can I say that hasn't already been stated? Thanks Dante for have an accurate morale compass and not letting money allow you to deviate from it.
 
Is this MGN?

24 grams protein per scoop? brb figuring out which proteins offer this.

I wonder if it's Myofusion. That'd ruin my day.
 

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