Thursday, March 21, 2013
USANA Associates Pay More Than Suggested Retail Price For USANA Products
USANA Health Sciences is a multilevel marketing company that recruits sales reps into an endless binary hierarchy where each person receives points based on the personal purchases (noticed I did not write "sales") of those associates below their position. One of the biggest factors in determining if a MLM is legitimate or simply an illegal pyramid scheme is whether their products are being resold to retail customers. Lets take a look at USANA's hottest selling products and see if it can be retailed.
USANA's suggested retail price for their Essentials is $54.54.
USANA's wholesale price of Essentials is $50.50.
The shipping and handling (UPS Ground) is $10.94 to have one Essentials shipped.
It costs a total of $61.44 which is $6.90 over the suggested retail price! How are associates suppose to retail the product?
Lets try three Essentials. Wholesale price would be $151.50 and shipping is $11.77 which comes to a total of $163.27. However, the retail price on three Essentials if $163.62. Again, there is no chance for the associate to make a profit even after purchasing three Essentials.
What about Autoship prices? Autoship is a term USANA uses for an automated product purchase of 100 points ($114-$137) made by the associate every 4 weeks. This personal purchase allows the associate to be "commission qualified" (Again, notice I did not write "sale"). Now that associate can collect commissions from the personal purchases made by the associates below their position in the endless binary system as well as their preferred customers. Being on autoship also allows the associate to receive a 10% discount from the wholesale prices.
If the associate purchases one Essentials at the autoship price, it will cost them $45.45 plus the $10.94 shipping for a total of $56.39. That is still $1.85 higher than the suggested retail price if you can believe it!
However, if the associate purchases three Essentials at the autoship price, it will cost $136.35 plus $11.77 in shipping for a total of $148.12. If the associate can manage to retail all three boxes at USANA's suggested retail price, the associate will make $15.50 profit, which is only $5.17 per box. This dilemma causes inventory loading, the other ingredient to be an illegal pyramid scheme.
So there is no possible way USANA associates are retailing product because there is no money to be made by reselling the product. There is no reason to become an associate or preferred customer either because in the end they'll be paying the retail price anyway. Plus, associates have to fork out an additional $30 to join and $20 each year to renew.
So not only are USANA's products grossly overpriced (in order to fund the pyramid scheme), but associates end up paying the same price for the product whether they joined or not. In fact, USANA's product (new condition) sells for half the autoship price on Ebay.
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Seems like you're getting bored of attacking usana or just out of idea's to attack. how about their recent free ipad incentive? got any trash on that?
ReplyDeletegive us some real stuff. not this autoship vs. retail price crap
So you are fine paying more for the product as an associate than you would if you simply purchased the product at USANA's suggested retail price from an associate?
DeleteSo you're admitting that you're resorting to bad math and cheap tactics to attack usana with rather than reporting on legitimate corporate schemes and illegal operations? Comon. Give us some real stuff. Not this autoship vs. retail price crap.
DeleteYou make it like they don't pay shipping for shipping an handling when they order retail. Comon. Is your math really that bad? Or did you forget to turn your logic on when you wrote this article. Good try though.
Actually, you seem clueless about what it means for a USANA associate to resell product at the suggested retail price.
DeleteAssociates are required to retail product to 5 or more customers in order to be eligible to receive commissions. Retail sales are a requirement in MLM or did you not know that. When USANA sets the suggested retail price for their product, they expect that to be the price that associates RESELL it to customers. You as the associate buys the product and pays the shipping. Then you take that product and resell it to a customer. You'll never be able to charge more than USANA's suggested retail price. Besides, if the person wants the product, they would become a preferred customer. USANA differentiates between retail customers and preferred customers.
You make it sound like people just flock to a distributor's website to place orders for their product. People do not approach USANA or its associates and start ordering product. It's the other way around. People are approached by USANA associates. USANA associate websites are not used to retail product. It is used to flood the internet with more advertisements for USANA to recruit people into the business opportunity.
The only one using bad math and cheap tactics is USANA.
Maybe you don't know how to sell something. If you have a box of Essentials in your hand to sell to someone on a street corner and you showed that the suggested retail price is $54.54, are you going to seriously try and sell it to them for $65.48? Give me a break...
Now again, do you believe it is fine that an associate pays more than USANA's suggested retail price for a box of Essentials?
So reading the whole blog, I am so saddened. I have been using Usana products for years. Not only has my blood pressure come down, my cholesterol has come down 100 points. I have checked the FDA website and contacted numerous people regarding this company. It funny that you have such a distaste for a company that is a direct marketing company.. Not a pyramid , also you are wrong about losing your points. I find your lack of information concerning this company criminal and nothing that you have posted in accurate, you have over inflated all your facts. Since I have now contacted Google and the Surgeon General and received emails back I find this company is 100% truthful......
ReplyDeleteI've explained throughout my blog how and why USANA is a pyramid scheme. You simply claim they are not. So why do you think USANA is not a pyramid scheme?
DeleteYou claim I am wrong about associates losing their points. What are you referring to?
You wrote "I find your lack of information concerning this company criminal and nothing that you have posted in accurate, you have over inflated all your facts."
are you kidding me? I have 65 postings on my blog filled with information and are peppered with references to back up almost everything I have written. You provided no example to this statement, but since you wrote in within this thread, tell me how I am wrong about USANA distributors paying more for the product than the suggested retail price.
Also, what does Google and the Surgeon General have to do with USANA being 100% truthful? Do you believe Dave Wentz when he stated USANA has a number of Chinese Nationals (from mainland China) who are building a USANA business in Hong Kong? It's illegal for Chinese Nationals to join MLM, and by doing so in Hong Kong circumvents their laws. So in this case, do you think Dave Wentz was just lying now?
Quoting: I have been using Usana products for years. Not only has my blood pressure come down, my cholesterol has come down 100 points.
DeleteYet another person who believes that the USANA products are magic pills that can cure ANYTHING.
Okay, I dare you then to give those essentials to people who don't even do exercise or eat the wrong kind of food without asking them to do exercise, and see if their blood pressure and cholesterol drops down.
I dont get it. Yes the Usana business model is crap and a scheme where people lose a lot of money. But as soon as anyone on here posts that they feel better on the products, they are crucified. Why? Why is it so hard for people on here to accept the fact that Usana's products can actually help some people? Is the product expensive - absolutely? Does the company rip off their customers - absolutely? But who is anyone here to say if someone feels healthier on the products? Where is all the bitterness coming from.
DeleteI am an ex associate, and until I find another product as beneficial as Usana's, I am staying on them much to the displeasure of so many here. Its my health, not yours, and if you have problem with that, tough crap.
The apple test which so many have also bashed on here, does an excellent job showing the effects different vitamins have on the apple. The apple is used because the apple has living cells, and the texture is firm so it doesnt become dissolved or all creamy etc from being in the water for long. The apple lets us truly see how effective different vitamins can be. Fact, not opinion, Usana's vitamins and True Stars vitamins (canadian based vitamin company who also received 5 stars in Comparative Guide which we all know does have bias towards Usana) kept the apple alive the longest.
What does the apple test show? Just a sample of how effective the vitamin nutrients and quality of those nutrients can be when working with out cells. Why so many people on here, who claim to want to really help people, have such a hard time with the apple test is beyond me.
Most of the other vitamins on the market are crap, and within 2 - 3 days, the apple was completely dead. Yes Usana's vitamins are not magic pills, diet, exercise, and lifestyle habits certainly play an important role. But if you combine healthy lifestyle, good diet, exercise, and high quality vitamin like Usana or True Star whats the harm? If you really feel better, thats excellent!
I quit Usana business long ago, make no money from writing this post, and have no financial incentive to write this, and actually try to stop as many people as I can from doing Usana or any other network marketing company as they are all scams. Until I find another company that produces high quality vitamins like Usana, (True Star vitamins are actually more expensive), or the day comes when the Watchdog can produce bullet proof evidence that Usana's products aren't high quality, then I am going to continue taking them much to displeasure of so many bashers on here.
We're not talking about how effective the vitamins are or otherwise. We're talking about the price of the products retail vs. wholesale, and if the products are ACTUALLY worth the price.
DeleteI am not bashing the product. But remember that these are called supplements because they fill in whatever nutrients we lack. I do not have a problem for people who sell the products AS SUPPLEMENTS, but tricking other people by telling that the products can be used as cures is another thing.
I know some associates who claim that the Essentials can CURE diabetes or stroke.
Remember that the Apple test is only showing the acidity of each supplement, in this case the potency of vitamin C ALONE.
GO Watchdog! these Usana associates lose the debate everytime and at the same time losing $. I can't believe I use to be an associate.WOW how terrible I would of sounded defending USANA. btw I just watched this documentary about this cult called Scientology. Its very similar to how USANA associates get brainwashed. Please Watchdog make a blog about the psychology and mind tricks of how USANA works. Usana associates' brainwash minds will wake up right away once the psychology is back to normal. They are trying to discredit your information with no proof because they have been brainwashed. Your blog only makes sense to people who have already quit or people who will never join (due to being too smart) I have inside information on Usana's trainings and I can send you information on the topics they use to keep USANA associates fooled.
ReplyDeletefor example: in convention Jordan Kemper talks about how you shouldn't go to school because your pay in a job is limited and Usana is unlimited. so a lot of young kids are convinved not to further their education beacuse they think USANA will retire them in 3 years. It ruins futures and ruins people lives.
Not just ex-Associates but also the families of associates are under the financial burden placed on them by the fool associate. The effect trickles down well after the USANA associate and includes their children and futures.
ReplyDeleteIn our family its an illness. He seems unable to stop and is driven by a mentor (I think you call them Builders)
Shipping cost from Usana HQ to Blaine,Washington is $6.80 for a HealthPAk($114.00) plus $9.68 tax. If my wife sells this to someone she will charge them the delivered cost $130.48.
ReplyDeleteHer revenue is made through the point system. so I'm not sure as to the relevance of the retail price analysis.
I agree with your overall analysis of Usana, but I note that
investors disagree as the stock has regained its loss from the hit it took from the Citron report. Time will tell.
ex-silver director 2009
DeleteRetail for a healthpak is 136. $24 more 17% more than wholesale. What watchdog means is that there is little room for profit if you try to sell it retail. If you sell it at 130.48 then that means you didn't sell it to retail the product. There is no way you can retail Usana. Its more profitbale to sell strawberries in the corner of the street.
I have been following usana stocks for 4 years and studied their annual reports. I bought stocks before at $45 a share years ago. I made little money in the stocks and there is a big risk the compnay could fall as most of its revenue comes from new blood new packages. That means new fresh minds you have to brainwash, new money. Once an associate buys a package they have a less than .001 chance of returning because they know Usana doesnt work. At $45 a share it is impossible to make a fortune in Usana stocks because you will need a big wave or recruits that year THEN as the SAME time they have to STAY and make an even bigger wave just to pass the $60 a share which will never happen. For the slang XY gen who don't understand. "You will need 5 Duke tubtims to this thing up" just to pass 60 a share. I have calculated the math and that is about how it should happen.
Q. Is Usana a good stock investment?
A. Not longterm. Ask yourself would Warren Buffet buy a Usana stock? *laughs* at business model
Q. Is Usana a scam?
A. Its as legit as Dr. Wentz' Tan.
hey ex-silver I heard in Usana meetings that you are a hater so I asked my close friend who is not a Usana member or against Usana to read all the post on here and all my notes I took in a Usana training. Yes you are hating and negative but my friend came to a conclusion that Usana is a waste of time. My friend also concludes that you are not a hateing about the good usana brings. but you are hating on the negative that usana does so in a way that is a Positive thing. you are actually trying to save people time and money. The more I think about it the more I feel like I am getting trapped into Usana and wasting my life away. I am btw in Aaron dinh's downline and I come to think why am I shaking his hand and thanking him for nothing. He doesn't pay for my bills or feed me. Then I read a post here that his lambo is rented. So you mean to say all of us are paying for a rented car? Thank you Usana watchdog for this blog and all the ex associates that added info that I would of never heard. I am cancelling my Usana memebership once I can get a hold of a fax machine. they want me to fax my signature for quitting. why don't they ask for associates to fax their signatures before they join? its just a trap and they want you to make it harder to quit.
DeleteI was in Usana also and I quit 2 years ago, it was a great experience, they did train me in sales and to pursue my dreams, but that's it!! Business model is a joke and a scam (anyway product are ok).. Now I'm debt free, my new business (that generate residual income) is generating over 3k per month and growing and I'm not scamming nobody, I provide a service and people buy it, that's it.. So don't worry you will find something and will have a better life, just like everybody that quits usana!! Regards..
ReplyDeleteUsana products are expensive !? comparing to what ? Costco vitamins which are craps ? Your review is bunch of crxp if you don't know any mlm business. USANA so far is no. one vitamin in the market. bar none.
ReplyDeleteNumber one in the market according to the Comparative Guide, written by Usana associates. What a joke that guide is...
DeleteIt had me fooled too until Watchdog exposed the truth that it was not written by an independent 3rd party.
If the vitamins were that great they should be readily available everywhere, not just through a pyramid scheme. Think about it.
Thank you all for your comments, they were informational and entertaining. I was recently introduced to Usana as a business venture. During my second meeting with the distributor I asked some questions to help me make a decision about investing more time. As a former small business owner (service not products), my instinct says stay away from the business but give the nutrient supplements a try. I admit I don't know a lot about the business but I can see it's clearly a pyramid. Lots of promises to having a better life with hard work. I just don't think the better life they speak of is in becoming a distributor.
ReplyDelete99% of distributors do not make a profit and that's a mathematical fact. Look at the compensation plan, do a calculation, and then add "business expenses" and you'll see why.
DeleteSecondly, you need to lie to be successful which isn't the right thing to do.
Wow...so much bad math and I might add logic. 1% is clearly wrong. You can take a look at how the share of profits are distributed within the tree to figure that out. I wouldn't even bother drawing a picture for you. Second, you are deciding on the profitability of the business with 3 products sold retail. Induction can be a tricky mathematical proof which clearly you just failed. On this one too, I wouldn't bother drawing a picture.
ReplyDeleteYou better listen to people that can help you succeed instead of flawed logic, rants and bad math.
USANA Associate Claims: 1% is clearly wrong. You can take a look at how the share of profits are distributed within the tree to figure that out. I wouldn't even bother drawing a picture for you.
DeleteThis would only be true if USANA's binary compensation plan was required to be perfectly balanced. However, no USANA associate has a balanced downline. In fact, the downlines look more like a long root system with associates placed in straight lines. In fact, if I had 100 associates in my downline all purchasing 100 points worth of product for a given week, and 50 of those associates were all placed in a straight line down my left leg and the other 50 in a straight line down my right leg, then I would receive $1125 commission check. However, the remaining 100 distributors would receive absolutely nothing.
As a result of these imbalances and the fact that MOST distributors drop out, you end up with 99% of the associates never making a profit.
USANA Associate states: you are deciding on the profitability of the business with 3 products sold retail. Induction can be a tricky mathematical proof which clearly you just failed. On this one too, I wouldn't bother drawing a picture.
I used three USANA Essentials for my example. Am I wrong for using only three Essentials? I think I probably used too much for a practical purposes because most associates don't purchase more than the required 100 points worth of product all participating distributors must purchase.
According to USANA's last four quarterly earning statements, active USANA associates purchased $637.4 million worth of product from USANA. This translates to $218 per month or $50 per week.
I'm simply using USANA's own figures for my calculations. It's not my fault 99% of USANA distributors never made a profit. I was also being extremely favorable in my calculation toward USANA. I was assuming that USANA associates actually retailed product. Most associates do not. They rely on selling the bogus lies and misleading people into joining a pyramid scheme.
Watch dog, good try. But flawed.
DeletePoint 1: Your single line is practically impossible. To have it such it would require:
- constant failure of a complete branch
- no additional associates joining or if they join, repeated failure of the branch
- every associate on the failed branch did not bring any associates, and if they did, the associates enrolled failed.
I'd say its somewhat improbable as a scenario and I can see where you come up with 1%. My opinion still stands: it is flawed to infer from an improbable scenario that 1% make a profit. I hope that you will take this positive construct to revise the claims that you make on this blog.
On the second post, you are using averages. There's nothing that you can infer from an average if you do not know the variance.
So, Watch Dog, this is status quo. I still don't know why you keep on pushing with this blog. I understand there are some frustrated people out there, but hey, they are frustrated when they properly fail to understand their own insurance policy for what it matters.
And what about other "business" expenses? Travel, attending presentations, hotels, promotional materials, admin costs...
DeleteAdd these costs to this flawed business model too.
The only thing flawed is you interpretation. Admin costs..really..and what exactly is that? A pen and paper? Travel, hotels...what are you thinking ? That by joining Usana you embark in a world tour? And promotional materials? They are free! Unless you want to buy shirts with Usana logo on them! Attending presentations...I think this may be your bigger cost and I'm going to let you prove it. To get you a head start, let's see. 30 days a month, 8 hours a day: 240 hours. A presentation duration 4 hours. Cost of a presentaion 10$. It's going to cost you 600$ just in presentations alone! Oh wait, you do have a day job right? You can't possibly spend the whole time in presentations. You decide to just go to one a month. You just saved 590$. It is now costing you a big 10$!
DeleteYou can now calculate by yourself.
At least get your numbers right watch dog. Once again you are off. Not by enough to make your claims seem outlandish but just untrue. I do appreciate what you do though as I have every one of my new associates read your blogs immediately after they enroll. You give USANA Health Sciences ever more credibility, when every single one of your claims is easily proven false. Betcha didn't think you were making USANA associates even more successful did ya ;-) Keep up the good work, you are making me a fortune!
ReplyDeleteAt Least, Only Thing, Pointed One et al
ReplyDeleteYou are forgetting that the Watch Dog pulls his numbers from the published
financial statements, news releases, and the associate earning reports published
by Usana. He states his sources, your have made statements that are not correct and are not referenced to any source.
The only people you could possibly impress are Myron, David and a few of your fellow associates. The rest of the world can see whether 99% lose money it is a scam.
Do you know who was put in your up-line today?
"Watch Dog pulls his numbers from the published
ReplyDeletefinancial statements, news releases, and the associate earning reports published
by Usana. He states his sources, your have made statements that are not correct and are not referenced to any source."
Dream on...