Too many Chemical Guys re-labels. - Page 2

Setec Astronomy · 12-19-07, 08:32

Quote:

Originally Posted by BigLeegr

I think it's in regards to the fact that CG seems to push their label to consumers and make things looks as close to other companies' products as possible, and thereby take sales from someone who may private label from them. For example-The ButterWax (ButteryWax, or whatever it's called today). If they (CG) are selling this product to a consumer with the intent of taking business away from the private label customer of theirs, it's competing. I also think it's lacking in business ethics. There should be some sort of "non-compete clause" in effect, but there doesn't seem to be in this case.

We've had this discussion before, almost no private labelers compete with their customers. I mean "hey, we're a big company, we'll take our bulk product and put it in a small bottle with your cutesy label and you can sell it on your internet store instead of having to travel around on weekends to car events hawking your wares" which is fine until the big company puts up their own website and sells stuff that looks identical for half (or less) the price. The little guy is fine if he has his own market niche which won't find the big co. store, but at least in this forum niche, we all know all the players.

sspeer · 12-19-07, 08:34

Quote:

Originally Posted by BigJimZ28

How are they competing?
they sold the private lable stuff, it is money in ther pocket

I think it is a win-win for everybody

How is it not competing?

I have a choice to buy same 16oz of Polish X from CG or a private labeller. If I was a private label, why would I want to compete with my supplier/manufacturer? They could always undercut me.

It's the 'Money in their pocket' attitude that I get from them that bothers me. Sure..every business wants to make money..but when money is king, it means nothing is sacred..things such as quality (which there have been some threads about some second orders of products not being as good as the first 'get you hooked' batch) There are also some instances of copyrighted images and bottles

I just don't see the long term value of such a business plan..which seems to just be sell as much as you can, however you can, as fast as you can...reminds me of a used car lot

Setec Astronomy · 12-19-07, 08:37

Quote:

Originally Posted by sspeer

I just don't see the long term value of such a business plan..which seems to just be sell as much as you can, however you can, as fast as you can...reminds me of a used car lot

Isn't that the American way now? The CEO's don't care because they'll be gone before anyone catches on, and they don't care anyway because even if they get fired they have their golden parachute and may even get their salary after they have been fired.

Anomaly · 12-19-07, 08:52

Quote:

Originally Posted by sspeer

How is it not competing?

I have a choice to buy same 16oz of Polish X from CG or a private labeller. If I was a private label, why would I want to compete with my supplier/manufacturer? They could always undercut me.

It's the 'Money in their pocket' attitude that I get from them that bothers me. Sure..every business wants to make money..but when money is king, it means nothing is sacred..things such as quality (which there have been some threads about some second orders of products not being as good as the first 'get you hooked' batch) There are also some instances of copyrighted images and bottles

I just don't see the long term value of such a business plan..which seems to just be sell as much as you can, however you can, as fast as you can...reminds me of a used car lot

Technically, they're not competing because CG and the alleged re-labelers are selling to different markets.

CG is (1) selling to the re-labelers (one market) and (2) selling to detailers/detailing companies "in the know" who use the same products. While the re-labelers are selling directly to consumers primarily (ie, the folks at car shows willing to try new products).

Also, if that's the logic of not buying from one alleged re-labeler vs CG, then you might as well not buy any clothes from here on out. Most stores (ie, Eddie Bauer, Abercrappy and ******) buy from manufacturers (like CG) and re-label the products to sell to consumers with a mark up. Welcome to capitalism.

BigJimZ28 · 12-19-07, 09:14

Quote:

Originally Posted by sspeer

How is it not competing?

I have a choice to buy same 16oz of Polish X from CG or a private labeller. If I was a private label, why would I want to compete with my supplier/manufacturer? They could always undercut me.

It's the 'Money in their pocket' attitude that I get from them that bothers me. Sure..every business wants to make money..but when money is king, it means nothing is sacred..things such as quality (which there have been some threads about some second orders of products not being as good as the first 'get you hooked' batch) There are also some instances of copyrighted images and bottles

I just don't see the long term value of such a business plan..which seems to just be sell as much as you can, however you can, as fast as you can...reminds me of a used car lot

OK lets think about this real hard..........
if it is not working out for everybody why are threre so many private lables?

jsatek · 12-19-07, 09:49

Quote:

Originally Posted by BigJimZ28

OK lets think about this real hard..........
if it is not working out for everybody why are threre so many private lables?

This depends on what you consider a living.

Anyone can lay out $3,500 to get a few products going with their own labels. I think its more of an obsession.

How many re-labellers do you think turn it into serious revenue generating company? Its just like the detailing. 99% of the guys on here couldnt eat with the money they make cleaning cars, they do it because they love it.

jsatek · 12-19-07, 10:11

Quote:

Originally Posted by sspeer

How is it not competing?

I have a choice to buy same 16oz of Polish X from CG or a private labeller. If I was a private label, why would I want to compete with my supplier/manufacturer? They could always undercut me.

They wont ever try to under cut, Chemical guys WANTS the re-labeller to sell more product, then CG has less need for the ever aggrivating retail market. Believe me it costs 1/10 of the money to sell a gross of Pro-Detailer to a single re-labeller than it does to sell to hundreds of 16oz. to individual buyers. You need a larger infrastructure to maintain the business needs. Example - Autogeek. Many customer serivce people, huge warehouse and packaging facility, do you think that was cheap for Max to set up?

When the re-labeller claims like they, "talk to their chemist", "newly designed", and "reformulated for Nano finishes" in an attempt to stand out from the crowd. Its a buyer beware.

In the end, the only person making money is Chemical Guys and their parent Company Warner. It's a niche AMWAY in my eyes.

jsatek · 12-19-07, 10:13

Its a tie at 11....

Scottwax · 12-19-07, 04:31

I don't care one way or the other. If something is a quality product at a competitive price, it really doesn't matter to me whose name is on the label and who actually made it. If it works, it works.

Scottwax · 12-19-07, 04:38

Quote:

Originally Posted by jsatek

They wont ever try to under cut, Chemical guys WANTS the re-labeller to sell more product, then CG has less need for the ever aggrivating retail market.

That is how Everett Glass with Clearkote feels. Not with regards to labeling but his business model in general. He'd rather concentrate on making the products and others to distribute them. I think a lot of the smaller detailing product manufacturers feel that way. Less time to devote to making current products and research and testing of new products if they have to spend a lot of time assembling small orders instead of a few larger orders.

jsatek · 12-19-07, 04:48

Scott. I have a newly found respet for you. I'm happy to see someone else can comprehend that particular biusiness model.

Spilchy · 12-19-07, 04:56

Quote:

Originally Posted by wannafbody

I say the company most hurt by this is Megs. Maybe that's why Megs is focusing so much on the consumer market.

Hurt? You're kidding me right? I'd say in a month if not less, WalMart sells more of ONE of their products to consumers than every boutique product combined sold to consumers for the entire year.

More than 138 MILLION Americans shop at WalMart a WEEK.

REPEAT

More than 138 MILLION Americans shop at WalMart a WEEK.

Not to mention a huge presence in every auto parts store in the country!

Meguiar's can take a big fat dump on boutique lines.