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They provide at a premium price. I use a few myself and can find them
MUCH cheaper (i.e. 2-3x) at drug store chains who are getting in on this
lucrative action.

I suspect that their main competition in future will come from large drug
chains like Longs or Walgreens and places like Walmart who dont seem to
miss these sort of trends in high markup items, which supplements
typically are.

Yeah, as to the competition I would agree... although
two things bode well for GNC regarding this -- the
Rite Aid deal (1,500 GNC stores within Rite Aid stores)
and I actually see an advantage for GNC if Long's,
Walgreen's and WalMart get into this market (GNC's
Wholesale division would hopefully cash in by
supplying these retailing behomoths..).

Concerning competitive pricing, some of the little
regional players are under-cutting GNC -- Vitamin
Outlet is offering GNC Gold Card members a 20% discount
on every Tuesday of the month instead of just
on the first Tuesday (at GNC). I'm not worried about
this however because I think GNC's size and national
penetration will outlast this cut-throat pricing... plus
GNC sells a lot more than just vitamins...

-- Chad
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