Mars Men, a supplement brand, raised $27.5 million and hit $100 million in revenue by charging three to four times more than competitors. With $75 profit per sale versus $25 for rivals, they outspend everyone on packaging, influencers, and customer acquisition. High margins, not better products, now win markets.
Check out this news headline. Mars Men just raised $27.5 million for their supplement company. And by the way, the private equity group that bought this is the same group that bought Kodiak Cakes, the protein pancakes. So Mars Men is a supplement company that takes their sales on Amazon and Shopify. But what do they do differently than all of the other supplement brands? First of all, they're 3 to 4 times the price as everybody else. I have a product that competes with this brand, and we make about $25 for every sale, while Mars Men makes about $75 for sale. That means that they've got 3 times the profit that I do for the same product. That means that they can outspend me, they can invest in their packaging, they can invest 3 times the amount into influencer sponsorships, follow-up campaigns, or discounts. Thing that made them a $100 million business compared to all of the other competitors is not that their product is better and not because their copy is better. It's because they can outspend everybody else 3, sometimes 4 to 1. And that's how they're able to show up on every platform and get the most amount of customers. The way you win today is not by trying to come up with something new, is by being able to outspend everybody else. You can only do that if you're building a premium brand with the most amount of margin possible, and then take that margin, invest it into your customers so they have a great experience, and get as many of them as possible.
