October 22, 2013: USANA Health Sciences, Inc (USNA) will be releasing their 2013 third quarter earnings statement after the market closes.
Here's the USANAWatchDog prediction:
- Record net sales
- United States, Canada, Australia, New Zealand, Japan, South Korea, active associates flat.
- Lite associate participation in the newest market Columbia and nothing to brag about.
- Hong Kong, Thailand, Malaysia associate participation slightly up.
- Double digit percentage growth in the Philippines, possibly around 40% year over year.
- Mainland China growth for Babycare up substantially and possibly accounting for a third of their total net sales.
- Preferred Customer growth FLAT or decline.
There may be some discussion about new product ideas or even services such as DNA or Genetic testing (possibly as a way to insinuate that their products can help with certain diseases if you can show that there are signs of it from a DNA scan). During their 2013 annual convention several months ago, several hundred associates were surveyed with questions asking about genetic testing. These associates were given special bracelets as a result, which quickly became a rush by associates to find and take this "random" survey...
I don't think they will have any additional information regarding the SEC investigation regarding the insider trading. May probably won't even acknowledge the various investigations that several firms have initiated as a result of the SEC investigation.
There will be no doubt the usual - we are working with US associate leaders to find ways to recruit more associates, as if monthly recruiting contests aren't enough... Same old same old.
Things USANA won't have disclosed in this earnings statement or conference call that follows are the following:
- 99% of USANA associates make no profit
- The majority of USANA associates are restricted from retailing any product to the general public even though they are required to purchase over $100 worth of product every 4 weeks. This is forced inventory loading and a major red flag for being a pyramid scheme.
- These same associates that are restricted from retailing product are only allowed to enroll preferred customers into their downline. They must have at least 5 of these preferred customers to be allowed to collect commission as part of the lip service USANA provides to regulators. However, this rule is unchecked and unenforced.
- Around 80% of new associates quit within the first year.
- USANA has recruited over 1.5 million associates since 1992.
- The number of USANA associates that share the same home address. There are several associate Genealogy Reports that show the same home address in Hong Kong was used by thousands of mainland Chinese Nationals, which breaks the laws in China. Since USANA allows an infinite number of associates to share the same home address when they enroll, it becomes very easy to manipulate the associate growth for any given market of USANA's. You want US growth up - have 10,000 Chinese Nationals sign up using addresses from the United States.
- Active Associate numbers for the individual markets of United States, Canada, Mexico, Europe, Columbia, Australia, New Zealand, Japan, MAINLAND CHINA, Philippines, South Korea, Malaysia, Thailand. Since USANA groups their markets into regions, there is no way to compare historical financial data to today's.
- Percentage or amount of distributor incentives paid out to each leadership ranking.
I believe USANA is conducting a product-based pyramid scheme that has financially harmed over 1 million people worldwide who have signed up with the intent to make money after being prospected using deceptive and misleading information.
Wow so only 1% of USANA associates make a profit? How did you determine that. Suppose I am going to just be happy that the products have made a huge difference in my medical condition.
ReplyDeleteHave you ever tried any of the products or are you one that is in 'picture perfect health.'
I tried the products and experience no difference when I trained for a fight.
ReplyDeleteThis is an interesting read too:
http://ethicalnag.org/2011/12/04/john-cloud-time-3000-pills/
You must not have used them correctly or consistently. They changed Timothy Bradley's career.
DeleteFor one person to break even they need at least 10 people in their downline in a balanced formation (that is, they are 1 in a group of 11 people).
ReplyDeleteWhen you then factor in expenses such as motor vehicle running costs, telephone expenses, promotional material, conferences, and general admin that takes it up to 99%.
Don't forget too that in every Usana team you have people coming and going. 80% of new recruits leave Usana after one year.
Please, if you can't calculate or apply logic, do refrain yourself from posting numbers.
ReplyDeleteI'll use an analogy, which you, most likely, taken your calculations above, will fail to understand. But, it can be a fun one for other readers. Here it comes:
Imagine that you are in a business and you just introduced a new product. You are being asked to build a business case to demonstrate the projected profits and you do just that. You calculate that in order to break even you need to sell 10 products. You are confident that you reached a conclusion which you present as such: the projected profits from the newly introduced product will be 0, we will only break even.
Guess what happens next. In case you fail to imagine, a logical flow of events as a result of your presentation will be: lol, you are fired.
anyway you are scumbug watchdog
ReplyDeleteWhy are they a scumbag? All business face problems, questions and cynicism. That is not a problem. What is a problem is not being able to respond honestly or professionally. I believe many of the anonymous Associates replying to things like that aren't presenting a particularly pleasant face for USANA here.
ReplyDelete