Mike Tecku final appeared on this podcast in 2019. He spoke as an skilled Amazon vendor in our “Constructing an Ecommerce Enterprise” sequence. He’s again, having offered these Amazon shops, retiring, and changing into bored.
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.
The complete audio of our dialog is embedded beneath. 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 start out a enterprise fund and spend money on some stuff. I retired, purchased land within the nation, and shortly bought bored. I spent the subsequent 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 every part into one shake to make it simple. I wished 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 trustworthy versus stylish. There’s an enormous debate between plant-based and whey protein — which is healthier and whether or not so as to add superfoods. A superfood is something a marketer desires to name tremendous. I name it pixie mud when firms add hint quantities of one thing to make it sound wholesome. I wished no advertising fluff, solely the very best elements.
We went with this unbelievable grass-fed whey protein from Eire. It’s 5 occasions dearer than some other protein. Eire is the one place that may develop that grass year-round. And it’s the one place you possibly can 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 comprises heavy metals and pesticides and 30% fewer important amino acids. I wasn’t prepared to compromise simply because it was fashionable.
Not utilizing synthetic flavors is insanely costly. Each bag we’ve got has about $2 price of chocolate in it. We spend extra on chocolate than most opponents spend on their total product. So a 30-day provide of a Tremendous Greens drink may cost a little $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 advertisements? I consider the product shall be so good we received’t should spend as a lot on advertising due to phrase of mouth. We received’t have as a lot churn. In idea, of us will keep subscribers longer.
I’m not desirous about something that may’t scale. Momentum might very simply do $100 million a 12 months. To get to that degree, 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 incredible product and the precise worth and message. I don’t need to do something with a ceiling on it.
Bandholz: Are you promoting on Amazon?
Tecku: No, however we’ll ultimately. 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 deal with issues like this podcast to assist customers perceive what it’s about.
Bandholz: I’d hesitate to pay $75 per bag.
Tecku: It’s my job to speak that if you happen to 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.
Vitamin is tough. I constructed Momentum Shake across the idea that almost all people are poor of their diets. Our our bodies decline as we age. Momentum replaces the issues we lose over time.
We have now no secret drugs or medication. It’s simply the issues that our our bodies want each day. People don’t need to take a gazillion drugs.
Bandholz: The place can listeners discover you?
Tecku: They will purchase our product at MomentumShake.com. I’m on LinkedIn and electronic mail at [email protected]. I like mentoring, by the best way.