Wednesday, December 8, 2010

Manufacturing Costs Vs. Retail Costs

Progenex has made every effort to achieve market position as a premier brand of recovery protein, in an effort to justify their average price of $62.50 per bag of protein (1 bag of More Muscle + Recovery = $125/month). However, to achieve roughly $30,000 in sales (which equated to just under $20,000, after tabulating various discounts), Progenex spent a mere $2,600 in production costs.

If the costs for the packaging (the bags) is subtracted from their total manufacturing costs, plus paying a company to put the protein in those bags, the total cost for $30,000 worth of their product is just around $2,000. If the discounts are added in, we find that Progenex is selling Crossfitters $2,000 worth of protein for $20,000. Therefore, according to their own financial reports, each $60 bag of protein costs about $6 to manufacture.

If you’re a Crossfitter thinking about buying Progenex, please consider that you are actually paying $60 for a $6 bag of whey protein, and the rest of your money is going into the pockets of people like Darren Meade.

Read this article here


Box Squats
8x3 @ 65%

Kettlebell Complex
3 Cycles of 6 reps each
Double Swings
Double Cleans
Double Presses
Double Snatches
Bent Over Rows

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