Too many Chemical Guys re-labels.

[imported_Detailing Technology]

It seems every forum I go to now has a resident master detailer selling Chemical Guys (Warner) products with his own label on it. It's getting to the point of ridiculous.



Without naming company names, because so many are so sensitive to brand licensing and re-packaging like its a secret, sound off in the anonymous poll.

 

[imported_Detailing Technology]

I cant believe it, one hour down and its a 50/50 split!





I only see the two choices below.



1. Pay $24.99 for a gallon of XYZ



2. Pay $24.99 for 32oz. of XYZ with a different label.



And we arent talking about a Cartier or Hermes label. This is "Schlomo's Back Door Moonshine" Zero brand recognition in any part of the country. Unknown support, unknown product development, unknown management, unknown company history.



I'm not a Chemical Guys promoter, I only use a few of their products. But I just cant figure out what motivates the retail purchase. None of the products are ground breaking or industry changing. They are just XYZ chemical with a generic label and Hermes pricing. It defies just about everything written about marketing.

 

[Setec Astronomy]

Oh come on...it's like the Sneeches! Pretty soon everybody will have their own brand (even if they don't sell it...Q: "wow, that's shiny, what wax do you use on it?" A: "well, it's my own brand, Setec's Slippery As Snot on a Doorknob" {thanks, TC } Q: "wow, where can I get some?" A: "sorry, not for sale, I just use it on my own cars" ) and no one will care anymore about brands or labels, they'll just think they are all the same...

 

[wannafbody]

Well here's my take on it. Chemical Guys is really helping the small guy who doesn't have the money to launch a line. They provide products and someone else markets them. It's a good marketing strategy. The downside is that at best they are average products some of which are now being sold at premium prices. I say the company most hurt by this is Megs. Maybe that's why Megs is focusing so much on the consumer market.

 

[imported_Detailing Technology]

Chemical Guys has a wonderful model, really I believe in it.



My wife was in brand licensing for years. Her company invented the market back in the 80's with Wendy's "Where's the Beef". They made it legal for someone to sell a t-shirt with "Where's the Beef" printed on it ONLY if they bought a license from the company.



Their bigeer clients are Harley-Davidson, Stanley Tools, Mary Kate & Ashley Olsen. There is nothing wrong with selling a product you dont make. If they all got caught up in the details of how to make Harley Davidson salt and pepper shakers, they woudl have no business to worry about.

 

[kompressornsc]

Nobody makes anything anymore, don't you know that. It's all branding. I guess being in my business (promotional products / branding), I see it every day. I might have 300 suppliers selling the exact same pen that comes out of the exact same factory in China. It's difficult to stand out unless you have a very good marketing / branding plan.

I just sold some Cutter & Buck portfolios. Now C & B does not make portfolios (or anything else for that matter), but they license their name to be used on items. I think it was HangTen (clothing) that first came up with this novel approach a long, long time ago.

 

[Setec Astronomy]

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

:rofl Megs is hurt by a handful of boutiques selling relabled CG's? Too bad they only have the 10,000 or so W-M's, Targets, AutoZones, Pep Boys, and Advanced to distribute through...it's tough all around...

 

[imported_Detailing Technology]

It's all about client relationships.



What is wrong is the vendors that get "irritated" when you call them out on it.



kompressorsc - everyone knows your pen comes from China, if you got angry and defensive when a client said, "Are you making these pens yourself boy!", you would look like a fool and lose the sale. Way of the world. These "boutique" salespeople need to start thinkning of an angle that sells the product. It is getting insulting.

 

[imported_Detailing Technology]

:rofl Megs is hurt by a handful of boutiques selling relabled CG's? Too bad they only have the 10,000 or so W-M's, Targets, AutoZones, Pep Boys, and Advanced to distribute through...it's tough all around...

Not the same market, Setec is correct. I'm positive that Meg's grosses in 60 minutes what most of these Chemical guys re-packs grosses in their lifetime. Different customer, diferent retail outlets, different business model.







I am shocked by the poll results.

From what the polls are telling, people want to see Pro-Detailer in another 56 different containers.

 

[sspeer]

The part I don't understand is why the supplier competes directly with their private label customers...yeah..they sell more gallon sized products, but they also sell alot of the 16 oz bottles



Any value IMO, is that you trust the private label to dig through the myriad of products and pick out the good ones... Some do tweak the formula a bit..or so they say..



In a way it's like a Meguiar's or Mothers in that you can shop around at different stores for the same, or extremely similar, product for a better price :LOLOL

 

[BigJimZ28]

The part I don't understand is why the supplier competes directly with their private label customers

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

 

[Big Leegr]

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

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.

 

[Setec Astronomy]

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]

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]

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]

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]

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?

 

[imported_Detailing Technology]

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.

 

[imported_Detailing Technology]

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.

 

[imported_Detailing Technology]

Its a tie at 11....