XS Energy Drink from Quixtar
I had a friend give me a Citrus Blast XS Energy Drink, from Quixtar. I thought it was pretty good and it didn't have any carbs so I imagine this would be a great product to retail considering the Atkin's Diet Craze.
In my opinion most Quixtar products are next to impossible to sell at the retail pricing. I also find that most people who do any significant retail volume do not charge retail prices but rely solely on the volume bonus to make a profit.
So here comes XS Energy Drink; competitively priced and market relevant. A home run right?
Let's take a look at the numbers:
XS Energy Drink (1 Case - 12 Cans)
List Price: $23.99
Your Price: $20.40
The retail profit on 1 Case of XS Energy Drink is $3.59 or 15%. If you are 100PV in Quixtar, (keep in mind you would have to sell 14 cases of XS Energy Drink to move 100PV), you would make another 3% of $20.40 or $0.61. Total profit on a case of XS Energy Drink if you are at the 100PV level is $4.20 or 17.5%.
Even people in the e-commerce field will tell you that operating on a 17.5% Gross Profit Margin is tough. Let's look at how competitive the product really is.
180 Energy Drink appears to be a competitive product. 0 Carbs, etc. $21.99 online at Beverages Direct
Red Bull Sugar Free 3 Carbs, $21.99 online
Hansens Diet Red, 3 Carbs, $21.00 online
XS Energy Drink, 0 Carbs, $23.99
If Quixtar IBOs want to compete they would have to drop the price by $2.00, thus leaving the Gross Profit at $2.20 or roughly 8%.
Speaking strictly from a product standpoint, I like the taste and the fact that it has no carbs, it's too bad most of the sales of this product will be to folks that are already involved with Quixtar itself.