How the hell does GNC B&M stay in business?

[purbeast0]

I have a GNC downstairs below where I work and I pass it probably 5-6 times daily, and I think I see 1 person in there maybe once a week if that.

I also go to a GNC if I am out of protein power and need to get a small bag while my delivery from the website I order stuff comes from, and everytime I go in I've never once seen a person in there.

And it has been this way for probably 4-5 years. There is just never anybody in the stores at all, and the prices are ridiculous compared to what you can find online.

I also hate how they always try to sell you stuff at the register and pressure you to buy their stupid gold card.

Anyone have any clue how the hell they stay in business?

 

[SP33Demon]

I have a GNC downstairs below where I work and I pass it probably 5-6 times daily, and I think I see 1 person in there maybe once a week if that.

I also go to a GNC if I am out of protein power and need to get a small bag while my delivery from the website I order stuff comes from, and everytime I go in I've never once seen a person in there.

And it has been this way for probably 4-5 years. There is just never anybody in the stores at all, and the prices are ridiculous compared to what you can find online.

I also hate how they always try to sell you stuff at the register and pressure you to buy their stupid gold card.

Anyone have any clue how the hell they stay in business?

No clue. Sites like Luckyvitamin.com blow their prices out of the water... while their Ultra-mega brand isn't bad, it's overpriced for what you get. I'm guessing that people are just too lazy to look for higher quality and lower cost products online so GNC is where they buy from.

 

[FelixDeCat]

Sell stuff that cost $1.50 for $25.00.

 

[purbeast0]

yea the only thing I will buy in there is the little bags of protein, which are like $18 now and there are like 3 days worth of protein for me. i only go in there though when i'm like completely out of protein and it is saturday so i need some to last me till tuesday when my stuff will be delivered.

i do however like their flavors, the cookies and cream is really good. sometimes they have sales for $40/tub of that stuff and I will get them, if i just happen to need some at the time.

 

[purbeast0]

wtf dp

 

[Ksyder]

Its convenient and some people don't care about price. The advantage of not having to screw around with ordering online and then coordinating delivery probably drives some of their sales.

Personally I have used them many times but everytime I feel butthurt and swear them off after looking at what I would have paid online. I've bought the gold card a few times as well. Its not a bad deal if you use it properly.

 

[rudder]

People think GNC employees know a lot about nutritional supplements. When in reality they know about as much as I do after a quick google search.

 

[Lamont Burns]

mark up and monkey employees. malls need tenants right now. crazy thing is a franchise here in my city is looking to open 3 more stores, gnc types. fleecing of america

 

[oddyager]

Money from the uninformed or just couldn't bother with the hassle of researching and finding cheaper stores. Everything in GNC is overpriced.

 

[darkxshade]

Anyone have any clue how the hell they stay in business?

It's a front! The real money is made in the back room, a shot of HGH is high margin. They keep their prices high so they don't have to go through the motions of restocking.

 

[purbeast0]

well the thing that i don't understand is that yea, i get it that there are uninformed people who go there and buy stuff, not knowing about online prices and what not, kind of like people who buy tons of crap from best buy.

but the thing is, best buy is ALWAYS crowded as hell with people constantly shopping there.

GNC on the otherhand NEVER has people in it. even when I go buy stuff, like within the past 5+ years, I don't think ONCE i've ever seen a person in the GNC while i'm in there.

granted I know my time in there is a small sample size, but it usually is on the weekends as well, when I can't order something and have it arrive next day (cause the site i order from comes 1 day with ups ground)

i honestly have wondered if it is a front hah.

 

[IceBergSLiM]

500% margins

 

[SP33Demon]

well the thing that i don't understand is that yea, i get it that there are uninformed people who go there and buy stuff, not knowing about online prices and what not, kind of like people who buy tons of crap from best buy.

but the thing is, best buy is ALWAYS crowded as hell with people constantly shopping there.

GNC on the otherhand NEVER has people in it. even when I go buy stuff, like within the past 5+ years, I don't think ONCE i've ever seen a person in the GNC while i'm in there.

granted I know my time in there is a small sample size, but it usually is on the weekends as well, when I can't order something and have it arrive next day (cause the site i order from comes 1 day with ups ground)

i honestly have wondered if it is a front hah.

I think GNC has a higher markup vs BB... 200% vs 50%? Also, their stores are really small compared to BB so their rent probably isn't much. All they need is a few suckers a day to stay in business. It's a brilliant scam that preys upon people's laziness and once they lock a sucker in, they're usually a repeat customer.

 

[alkemyst]

I think they just hide when they see you coming. Around here we have GNC, Vitamin World, etc all in the same 1/4 mile strip and most are always entertaining customers.

 

[DrPizza]

Rent varies tremendously for a little location in a plaza, but let's say that it's 5k per month. That's $167 per day. And, let's pay the employee (1 at any time) $10/hr. That's roughly 120 dollars per day. Toss in electricity, etc., and you're probably looking at $500 per day to keep the doors open. That's a little less than $42 per hour, if they're open 9-9. Sell two things of protein for $25 each each hour, and they just made a net profit.

 

[JS80]

Extremely high gross margin. Compact retail space. Need one person to operate store. Makes sense to me.

 

[Phokus]

Rent varies tremendously for a little location in a plaza, but let's say that it's 5k per month. That's $167 per day. And, let's pay the employee (1 at any time) $10/hr. That's roughly 120 dollars per day. Toss in electricity, etc., and you're probably looking at $500 per day to keep the doors open. That's a little less than $42 per hour, if they're open 9-9. Sell two things of protein for $25 each each hour, and they just made a net profit.

I can't imagine they sell that much protein in an hour

 

[purbeast0]

Rent varies tremendously for a little location in a plaza, but let's say that it's 5k per month. That's $167 per day. And, let's pay the employee (1 at any time) $10/hr. That's roughly 120 dollars per day. Toss in electricity, etc., and you're probably looking at $500 per day to keep the doors open. That's a little less than $42 per hour, if they're open 9-9. Sell two things of protein for $25 each each hour, and they just made a net profit.

what about paying for all the product they have to sell?

 

[BlahBlahYouToo]

what about paying for all the product they have to sell?

lol. he neglected to include that important factor.

 

[JS80]

lol. he neglected to include that important factor.

I think the implication is that the gross margins are probably around 90%.

 

[FelixDeCat]

I think the implication is that the gross margins are probably over 9000.

fixed

 

[Fritzo]

They sell ash tablets, mark them as "Super Muscle Builder Energy Enhancers w/ Herbal Extracts and Penis Extenders", then sell them for $49.95/bottle. 6 suckers a day will keep them going.

 

[DrPizza]

lol. he neglected to include that important factor.

No I didn't. They sell it for $50, it costs them $42 per hour to keep the doors open. That leaves a few dollars for profit. Not $8, of course, because that crap cost something. But not much.

 

[BeauJangles]

No I didn't. They sell it for $50, it costs them $42 per hour to keep the doors open. That leaves a few dollars for profit. Not $8, of course, because that crap cost something. But not much.

Truth.

As long as you don't throw funky ingredients in your supplements (or at least not a lot of them), they generally cost less than $1.80 / bottle to produce. That includes the bottle and packaging. Throw in a buck or two to ship it and you're looking at costs of $4.00 bottle.

 

[TheFlyingSquirrel]

how is radioshack still in business