USANA's first quarter earnings come out today: April 24, 2012. As usual, I believe the United States, Canadian, and Mexican active distributors to remain flat or even decline further. I think the only area that will increase will be China / Hong Kong. Preferred Customers will continue to decline across the world. With the opening of several European markets for preferred customers only, there might be some small increase there, but that remains to be seen since I think they opened after the quarter ended anyways.
More comments to come after earnings are released.
For those interested, you can review Usana's first quarter financial summary on the Nasdaq and enter symbol USNA.
ReplyDeleteWatchdog's assumptions are correct. According to their financial summary, the Asian Pacific market is essentially the lifeline of the company.
Usana is recording a minimal increase in net sales over the first quarter. However, the net sales in the Asian Pacific markets have a 14.3& increase in net sales, and a 9.2% increase in active associates. In direct comparison, the North American region has experienced a 7.2% decrease in net sales, and a 2.3% decline in active associates. This decline in North American sales/active associates has been a consistent theme for the past year plus.
Dave Wentz, forecasts an increase in net sales in the North American region by the end of 2012 and supposedly this increase will come from more lucrative incentives for active associates etc. However, the first quarter financials also highlight a decrease in incentive expenditures in North America which is also directly contributing to the overall net increase in the first quarter.
In conclusion, the first quarter financial summary demonstrates a company that is dying in North America (would love to see a break down of just the numbers for the United States opposed to a collaborative figure for the entire North American region because this would definitely pain the real picture of what Usana's business model is producing just here in the states).
The only thing keeping the company afloat is their Asian markets and with the continued expansion into new countries like Belgium and France.
I believe the main problem with Usana's business model in the USA is the market is saturated, the products are very good but just too expensive, associates are forced to pay monthly recurring fees whether they make commissions or not, and most importantly, the company makes it very difficult for their associates to make any money.
If they want to improve production in USA, they will need to radically change the model so more people make money and can justify the amount of time and effort needed to work the business.
Thanks
to think i used to defend people about usana and network marketing...you are damn right about usana making it hard for people to earn money....heck they have a website...their associates have websites but they dont allow you to market on the internet how dafuq did that happen? they will personally call you if you advertise on ebay or any other site! this company is stupid! the market is on the internet and they are keeping you from it!
ReplyDeletethe first quarter financials also highlight a decrease in incentive expenditures in North America which is also directly contributing to the overall net increase in the first quarter.medical supplies Malaysia
ReplyDeleteEvery time I feel that moment to give Usana another shot, thinking it will be different this time, this forum simply brings me back to Earth.
ReplyDeleteFolks, over 95% of the people involved with Usana fail. For those people who don't make any real effort to move the products or business, and/or make no effort to improve their professional skills, shame on them for blaming anyone but themselves.
But the reality is people are looking for ways to make some more money. The Usana business really only survives because associates sell you on that dream that you can work hard for a couple of years, then you will have built a solid organization and reap the benefits of a lucrative residual income. It sounds fantastic doesn't it?
If it were truly fantastic then this blog really wouldn't have a need to exist because the majority of the associates would work very hard over a consistent period of time, and make some real money while truly helping people do the same.
But that is not reality. Reality is, you will probably spend a lot of money and work very hard while you are an active associate chasing that dream of lucrative residual income. The only problem is you either run out of money, or get burnt out before you even scratch the tip of the ice berg of success.
Keep in mind that over 95% of the associates will quit. So deductive logic tells you that for every 10 associates you sponsor, 9 of them will quit. Just doesn't sound fair does it especially when you factor in the enormous amount of time, effort, and money you devoted to both sponsoring that associate and then training that person. The levels of attrition are sky high, and you always have to constantly constantly constantly constantly sponsor new associates.
Forget about preferred customers. You don't make any money on those sales orders and the majority of the preferred customers will cancel their auto shipments in due time. The primary reason for this is quite simple. First the products are very expensive.
Second, you sign up a new preferred customer who places an order. They are excited, and you are excited. Unless the customer wants to spend another fortune on over night delivery, it will take approximately about a week for your customer to receive it. Well guess what, in 21 days, another order will be processed on your customers credit card. So do the math, each bottle of vitamins has a 30 days supply. Usana processes your autoshipment every 28 days, not 30 days. Reason behind this is Usana can squeeze an extra 2 auto shipment during the year. Nice eh.
So you receive your bottle, and you now have 21 days before your next shipment is charged and sent. Customers will ahve an abundance of vitamins stock piled from all the auto shipments that are charged and sent prior to you consuming for full 30 day supply. It is just a matter of time before your customers get upset. Lets not even discuss the cancellation rate when customers don't feel the super human effects the associates try to sell them on too. When they don't feel the benefit you promised them (doesn't matter if they eat like crap, they will still blame you), they will cancel there account.
Throughout this entire process of you breaking your back trying your hardest to get customers, retain customers, get new associates, training them, and praying to the almighty they don't quite, good old Usana keeps charging you, the associate doing all the work, your own monthly recurring autoshipments of at least $100. Don't matter if you make any money or not, you still owe big brother this money every month. If you don't pay, they make you ineligible for commissions.
This is real people. I spent 3 years of my life trying my hardest to build USANA business. All I got in return was a mountain of debt, and lost so much family time.
For anyone even thinking about doing USANA, do your homework and see if it really is worth the disappointment in the end. Don't let these diamond directors fool you. There is a lot more to it then simply hard work.
I had a very similar experience, don't beat yourself up - FROM NOW ON, cherish your family time and learn to respect your money. Dave Ramsey's plan or similar is a good way to start if in debt. As they years go by of being MLM free, the sting will fade.
DeleteReally informative post.
ReplyDeleteDietary Supplements Market
I didnt really have my own home business...how can it be my "own" somebody still bugging me not to sell on the internet! and if i was being bugged liked that how can i even recommend this business to other people,i was doing alright when i was being able to sell online i was even getting lots of calls and emails,then usana personally calls me and tells me to stop doin it just stop!...so i said to hell with this,the money i spent! this sux...i will let others discover that for themselves!
ReplyDeleteCame across a very compelling article that was posted 3 days ago and really provides investors an thorough analysis of Usana's business model. This is just the icing on the cake. Only a matter of time now before Usana gets in real trouble. Definitely worth reading.
ReplyDeletehttp://seekingalpha.com/article/582511-usana-health-sciences-investors-need-to-know-the-truth-about-this-mlm-company
Don't believe the get rich dreams the diamond directors are selling you. The company is only surviving by forcing the associates to pay approximately $120 a month to stay active. This business model is an empty shell. There are no substantial customers. Stay away people.
"Thorough" analysis? The guy can't even back up his statements in the feedback section..
Delete^^ dumb article..he can't even back up his own statements
ReplyDeleteusana is the worst company in the world! why? i bet they are the only company that doesnt allow the use of internet to sell unless you are a GOLD DIRECTOR ...what they want you to do is go from door to door and sell products...who dafuq wants to do that in this age? and the reason they give you is because they are promoting fair competition! whats not fair? someone with the means to make their own website or use ebay obviously has an advantage...usana doesnt want that...thats why i quit the stupid mother....usana is alot of bull!
ReplyDeleteIf in deed the usana watchdog is run by Tracy Coenen, then this whole blog is fraud too. Tracy was involved with Barry Minkow lawsuits and Usana directly. This would destroy the credibility of this blog and also reveal the true agenda of this blog.
ReplyDeleteI'm not Tracy Coenen.
DeleteIf you feel there is misinformation on my behalf, then point out which specific points I make that are false and we can discuss it.
I love USANA, I have used the products and so has my Mom for more than 10years. They are not "too expensive", people in USA are ignorant about vitamins and most don't buy them or worse they purchase those that are less than $10 w/false marketing claims on TV, they do not absorb, the ingredients are questionable especially when they turn a peeled apple black vs keeping it white (to protect and not harm your OWN flesh). I have the Comparative Guide to Nutritional Supplements. Majority of Prenatal Vitamins don't absorb either and amounts of quality ingredients are iffy. Dr Myron Wentz is the pioneer in vitamins to voluntarily guarantee potency and purity. I love the skin care as well, it is the only patented self preserving skin care line and it is the only thing that turned my skin/acne around (I tried many others prior MK, Murad, ProActive and all did not last or worse dried my skin). I have personally been a preferred customer for more than 10 years. Compared to one new mlm, touting their shake mix that tastes like cake mix but uses SUCRALOSE which IS man made science wachiness and MANY ppl have had severe adverse affects of SPLENDA use it is frightening to me the masses that are pimping this company, making lots of money, driving bmw's etc but the product stinks bc of SUCRALOSE!!! IF only Ryan Blair would wake up and make the science team change that ingredient. They want it to be good for you or the use is and say it's a minute amount, what amount of DDT would you eat knowingly and give to your family, friends, loved ones??
ReplyDeleteGO USANA..NO.1 HERE IN THE PHILIPPINES
ReplyDeleteYeah, right. Number 1 in terms of brainwashing.
DeleteI don't understand this site. Most USANA associates truly believe they are making a contribution. When I spin up a team in a foreign country, particularly one with a lower standard of living than the US, I believe that I'm making a contribution. Where there was no business, now there is a business. Now there are new products, new opportunities present in a society where they were not present before. Now there is an income stream and the capacity for a family to live a better and more fulfilling lifestyle. I truly hope that the European expansion goes into easter and southern Europe, and into the Mideast and into northern Africa. I'd love to go to Morocco on business, and spin up new teams, and get them trained, profitable, and selling more product there. To me that is one of the great things about America, that we have set up entrepreneurial steps that enable setting up an international business, getting the team trained up, and profitable in a short period of time, and selling lots of product. By the way, for all the naysayers/whiners/sideliners, have you actually tried the following for breakfast? This tastes great, and gives you kind of a glow similar to that of an endorphin kick after a long run or swim:
Delete- Strawberry Nutrimeal, 3 scoops in 10-12 oz, blend in USANA bottle blender;
- 1 Chelated Mineral Vitamin
- 1 MegaAntioxidant
I've been taking that for breakfast for the last 2 months, lost 3 lbs the first month, 4 lbs the second month, and I feel great.
Down with USANA!
ReplyDeleteWait, I thought this was an unbiased site to debate the pros and cons of USANA.
Delete(Clearly not ;-) )