Mike Tecku final appeared on this podcast in 2019. He spoke as an professional Amazon vendor in our “Constructing an Ecommerce Enterprise” sequence. He’s again, having offered these Amazon shops, retired, and skilled boredom.
His newest enterprise is Momentum, a maker of premium dietary shakes, which he describes as “the Rolex of dietary supplements.”
He and I lately mentioned his journey — promoting his firms, setting priorities, launching Momentum, and extra.
Your complete audio of our dialog is embedded under. The transcript is edited for readability and size.
Eric Bandholz: Why begin a dietary shake firm?
Mike Tecku: I offered my Amazon firms in 2019 and did effectively sufficient to begin a enterprise fund and spend money on some stuff. I retired, purchased land within the nation, and rapidly obtained bored. I spent the following two years figuring myself out and researching longevity.
I got here up with this product primarily based on the premium variations of the dietary supplements I used to be taking. I related instantly with the producers. I put the whole lot into one shake to make it straightforward. I needed to make the Rolex of dietary supplements and make it tremendous easy and superior. I named the corporate Momentum.
Bandholz: It’s a crowded market, dietary supplements.
Tecku: There’s a distinction between being efficient, true, and sincere versus fashionable. There’s an enormous debate between plant-based and whey protein — which is best and whether or not so as to add superfoods. A superfood is something a marketer needs to name tremendous. I name it pixie mud when firms add hint quantities of one thing to make it sound wholesome. I needed no advertising fluff, solely the very best elements.
We went with this unbelievable grass-fed whey protein from Eire. It’s 5 occasions costlier than another protein. Eire is the one place that may develop that grass year-round. And it’s the one place you may certify that one thing is actually grass-fed. It makes for a premium product.
Some of us like protein from peas, the vegetable, however it accommodates heavy metals and pesticides and 30% fewer important amino acids. I wasn’t prepared to compromise simply because it was standard.
Not utilizing synthetic flavors is insanely costly. Each bag now we have has about $2 value of chocolate in it. We spend extra on chocolate than most rivals spend on their complete product. So a 30-day provide of a Tremendous Greens drink may cost $2 to $3 to make. A month-to-month provide of ours prices us $60. My philosophy is it’s a lot simpler to compete on the prime of a market as a result of few are prepared to do it.
The problem is promoting a bag for $75 if it prices $60 to make. How can we pay for adverts? I consider the product can be so good we gained’t must spend as a lot on advertising due to phrase of mouth. We gained’t have as a lot churn. In principle, of us will keep subscribers longer.
I’m not all in favour of something that may’t scale. Momentum may very simply do $100 million a 12 months. To get to that stage, I want about 60,000 subscribers. That’s 60,000 gross sales over 5 years — 12,000 a 12 months. That’s doable with an amazing product and the precise worth and message. I don’t wish to do something with a ceiling on it.
Bandholz: Are you promoting on Amazon?
Tecku: No, however we are going to finally. Customers are very worth delicate on Amazon, which requires training. As soon as of us acknowledge the model Momentum and look to purchase it on Amazon, we’ll have it on the market there. However for now, I’ll concentrate on issues like this podcast to assist shoppers perceive what it’s about.
Bandholz: I would hesitate to pay $75 per bag.
Tecku: It’s my job to speak that in case you have been to purchase all these elements individually, it’d be about $400 a month. And that by eradicating the intermediary on 20 elements, I can cost $75 a bag. And the margins aren’t really that nice for me. So it’ll take some training.
Diet is difficult. I constructed Momentum Shake across the idea that the majority people are poor of their diets. Our our bodies decline as we age. Momentum replaces the issues we lose over time.
We’ve no secret capsules or medication. It’s simply the issues that our our bodies want day by day. People don’t wish to take a gazillion capsules.
Bandholz: The place can listeners discover you?