Thursday, July 30, 2015

USANA Spends Less Than 1% of Net Sales on Research and Development While Claiming They Develop Science-Based Products That Reduce The Risk of Chronic Degenerative Disease.

USANA prides itself on science and research. However, that is one of USANA's most erroneous claims.
THE SCIENCE BEHIND USANA
"At USANA, scientific research is at the heart of every product we offer. Whether in studies conducted by top scientists in our on-site laboratories, or findings from the many research partnerships we have across the globe, USANA is fully committed to the research and development of cutting-edge nutritional technology.


And, of course, our state-of-the-art manufacturing facilities ensure that each product we create is made with the same high quality that set us apart from others in the past and will allow us to lead the field in the future."

 - Dr. Myron Wentz
, Founder and Chairman, USANA Health Sciences

Since 1996, USANA has sold $6.5 billion in product. From that money, USANA has spent $50.3 million in research and development, which represents only 0.8% of net sales. This is not representative of a company that is committed to research and development. In contrast, drug manufacturer Merck in 2014 alone spent $7.1 billion on
research and development, which represents 17% of their net sales. In 2014, Pfizer spent $8.4 billion on research and development, which represents 16.9% of their net sales.

USANA 2014 10-K SEC Filing 
"Our research and development efforts are focused on developing and providing high-quality, science-based products that promote long-term health and reduce the risk of chronic degenerative disease."

USANA claims their products can reduce the risk of chronic degenerative disease? I thought dietary supplement manufacturers were not allowed to make such claims unless they can back it up with substantial evidence.

24 comments:

  1. Merck spent that much, but drugs have huge side effects. So the logic of having to spend more so that the research is better is false.

    And man, I don't know what you are talking about. But usana stocks is now at all time high at $176... up $46 in that day and approaching to be a 1 billion dollar company.. it was $40 two or three years ago. Guess your site is helping to promote it more instead of destroying it. Money and number did the walking. Just go with the flow and your will make money, A scam like you said will never be a 1 billion dollar company like this. So get real..wake up and smell the coffee.

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  2. I have never had any financial position in USANA Stock and never will. I am not paid to write anything on this blog. I do not sell any product or service. I simply feel that if I can help at least one person from losing their hard earned money, then the time I put into this information is worth it.

    hmm.. I think you are doing them more harm than good. If they had not listen to you and invested in usna when it's 40 bucks.. they will be 4 times richer with the amount that they put in now..5k => 20k. Most distributor also dump money into that stock. Long term dist who got something going and who doesn't quit that is. Now the gdirectors and such are also going to get a portion of the profit that usana made besides in the profit sharing program besides their commission..and the stock. Nice going watchiedoggie. Like I said.. 99% all fail in the RE agent business too.. so RE agent is also a scam right. Didn't you know that low and easy barrier to entry == many enter and many failures, only few succeed. High and hard barrier to entry == few enter and thus more likely to succeed due to lack of competition (opening a sports bar).

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    1. Never have I told anyone not to buy USANA stock. That's their own choice. I have however, pointed out many times that Enron and Worldcom had their stocks going up and up. We all know where they are today, right? A company's legitimacy is not judged based on their stock value.

      successful real estate agents make their money when they actually sell something. In contrast, a successful USANA distributor who is Gold Director or higher make their money not by actually selling something, but by deceiving hundreds of others to join a pyramid scheme masked as a dietary supplement manufacturer distributing product to non-existant customers. These downline victims (the 99% who never make a profit) were told they can sell USANA product. They purchase $240 to often times $1250 worth of product and business material when they activate their business center(s). They attempt to resell the product and quickly learn that nobody wants to buy it, at least not from a distributor who is trying to sell it retail. Why? Because anyone who actually wants the product could simply become a Preferred Customer and get the product at the same cost as the distributor. When they quickly learn there is no demand for the product, they ask their upline Gold Director or higher leaders what the problem is. The leaders tell their downline to simply recruit as many people as they know instead because al the leaders already know not to waste the time to retail the product. So the tactic (and what it means when USANA distributors say you need to "work the business") is to sell the business opportunity instead. And in order to do that, you have to lie and decieve others into making them think there is a market for USANA products and that they too can become rich like the Star Diamond Directors.

      I don't see real estate agents going around recruiting other people and having them recruit other people and so fourth. No, they are trying to sell real estate.

      You wrote "Didn't you know that low and easy barrier to entry == many enter and many failures, only few succeed. High and hard barrier to entry == few enter and thus more likely to succeed due to lack of competition (opening a sports bar)."

      This does not apply to a model that is mathematically designed to fail no less than 99% of participants no matter how many join. No other business in the world has a failure rate (meaning they made no profit) worse than multilevel marketing. Not even classic product-less pyramid schemes were as bad as their failure rate was 90%.

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    2. U are just being cynical and trying to get attention by attacking a popular and successful company!! If only u knew how usana has changed many people's lives!! Good products don't lie and thus why they have worked wonders on me and many others and that's what leads its success. So my advice is go to buy some supplements for urself before u make any comments next time. Let the facts speak for themselves!

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    3. In response to "U are just being cynical and trying to get attention by attacking a popular and successful company!"

      How am I getting "attention"? I do not post my personal information on here. I don't have any advertisements on my blog. I have no financial gain from this blog or what I write about USANA. So how am I trying to get attention? And a "popular" company??? Most people have never heard of USANA or their products.

      In response to "If only u knew how usana has changed many people's lives!!"

      I do know. I receive plenty of emails from people whose lives have been negatively changed by USANA.

      You wrote "Good products don't lie and thus why they have worked wonders on me and many others and that's what leads its success."

      Please, enlighten me. What "wonders" have they done for you?

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    4. How in the world could someone's life be negatively changed by USANA? That's not even possible unless a person is brain dead. If a person spends say $300/month on the products, replacing what they used to use in many cases and was involved in the business keeping correct financial records they would put back in their pocket on average $500/month in tax savings. That is a Net $200/month, without ever even earning a check. If a person loses money with a USANA business it's their own fault not that of the company's.

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  3. I don't see real estate agents going around recruiting other people and having them recruit other people and so fourth. No, they are trying to sell real estate.

    That shows how little you konw about business. RE agents cannot go around recruiting people to sell RE. They must have a license to be RE BROKERS. Then they will recruit people..and you haven't seen the RE brokers do that due to your small sample. I have seen it all the time in NYC. and same with Life insurance broker. 'come work for me ..you will do well.etc'

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  4. Is Usana just another pyramid scheme, like Amway,,,? Can't these people do an honest days work? They are starting up here in Australia.

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    1. Mam/sir it is not. It operates using a legal business model. Significantly, it is not just another direct selling company, it sets the standard in the said industry. And it has been there in Australia since 1998.

      We can make some sort of discussions if you like. Who knows this might be the business opportunity you've been waiting for! :)

      You may reach me out at Facebook.com/charlievillena

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    2. Stop promoting yourself here. Wrong channel.

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    3. Atta Boy Charlie! Closed minded people will work 40 hrs/week the rest of their life while USANA associates have the ability to work from home and earn an unlimited income. I'd NEVER go back to a 9-5 W-2 job!

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    4. 1) Tell me that 2 years later.
      2) Also it's BS what you are saying. They don't work from home.. you have to go out and get prospects!!!! work from home my but. Liar.

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  5. And why are you gosh darn hell bent against Usana? Why not attack the entire mlm industry? They are all pyramid schemes that make their distributors purchase monthly orders of products to remain eligible for commissions. They all make most of their money from signing up new distributors opposed to product sales. Usana is no different. All these mlm companies are equally as bad and deceptive yet you only target Usana. Who in their right mind would take the massive amount of time and effort to maintain this blog, spend countless hours of time with absolutely NOTHING to gain supposedly except the peace of mind in helping others stay away from Usana. Bull crap! There is absolutely a hidden motivation behind this that you refuse to share and some of the information you share is not even public information. So you obviously have private inside information, and if your identity ever gets caught, I am quite certain Usana will file a multimillion dollar lawsuit against you. But by all means, keep on telling whole world how bad Usana if that makes you feel better.

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    1. Zamm.. Amen. And s/he is losing the war. look at the stock prices (don't tell me it's down because the market lost 1000 points..if it is crap, they will fall big). Look at Dr. Oz. Look at others who are tkaing it and having their health back. Look at others who are making money. even another web site that did research say they are very good product. Why not go have extendlife, shaklee.

      I suspect watchie got bitter from usana loss because s/he is not fit for business.

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    2. In response to "And why are you gosh darn hell bent against Usana? Why not attack the entire mlm industry? ..."

      I started researching USANA after I was approached 9 years ago to join. I declined and wrote my opinion online. Many distributors responded to my opinion and I kept a debate going. The more i dug into USANA the more I found that just about every single aspect of USANA is surrounded by deception and fraud. I don't go after the entire industry because I am one person and does not have that sort of time. Besides, what's true for USANA is true for the whole MLM industry.

      You then write "Who in their right mind would take the massive amount of time and effort to maintain this blog, spend countless hours of time with absolutely NOTHING to gain supposedly except the peace of mind in helping others stay away from Usana. Bull crap!"

      First you question why I don't go after the whole industry and complain about my focus on USANA. Then you question who has the time to maintain a blog such as mine. You contradict yourself. It does not take much time to maintain a blog and research a company. Some people sit around watching TV all night long while drinking a beer. I just happen to do something else with my free time.

      Lastly you write "There is absolutely a hidden motivation behind this that you refuse to share and some of the information you share is not even public information. So you obviously have private inside information, and if your identity ever gets caught, I am quite certain Usana will file a multimillion dollar lawsuit against you."

      I have no hidden motive. I am very clear on my motive. To expose the fraud USANA is to the general public. When someone is asked to join USANA, they find my blog and thank me for the information and decline to join USANA. I'm doing my part in society. What are you doing? Trying to deceive people into joining USANA? Some of the information I have was obtained through clever means, but none of it illegal. If you are good at researching something, you develop ways to get the information you are looking for.

      My identity does not need to be discovered for someone to sue me. USANA already knows who I am and they could have sued me over the last 9 years I have been exposing their scam. However, you don't sue someone who is telling the truth. There is also a discovery phase in which USANA would be required to disclose information that would prove my whole case against them regarding their pyramid scheme activities. They would rather settle for a large sum of money than to open pandora's box, just like they did when they settled with Barry Minkow and paid him large sum of money in return for him removing all the negative information he published about USANA...

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    3. Removing negative information is a common policy with all big fortune 500 companies anyways not just mlm..so that doesn't mean anything. Perhaps I dare to you post your face to talk negatively about usana.. you might get some money too to remove this site. Also if it's a scam, you think people will dare to post their face photos and be well known like dr.oz. At least certain people who are pro usana is not afraid to post their faces like kathy kaehler, the celebrity trainer and usana associate, whereas people who are anti usana publicly are scare to show their faces. That's the irony.

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  6. I am poster above who asked why you don't attack other mlm companies. I am not a Usana distributor, am dead set against mlm business. Never said what you say on this blog is incorrect and no i didn't contradict myself. Usana business is scheme for sure. They also just had their biggest payday recently aka convention. Thousands of newbies go there and expect to become rich, only to lose thousands of money in disappointment. To the poster and above, really, you are justifying usana business because Kathy Kaehler is one of their public figures? You would be too if they paid you the money they pay her to represent them. You don't actually believe she is doing it out of her own free will do you? I hope there are more sites like this exposing Ariix, Beach Body, Herbal Life, and the rest of the mlm companies selling false dreams, and over priced product. Beach Bodies 2 lb container of Shakeology is $100. $100 freakin dollars and just because it has some wheat grass, they say it is some special super food. Are people nuts?

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    1. There are websites, forums, blogs, and articles that are critic of every single MLM company out there. Most of them do not go to the lengths I have in exposing USANA. I have brought up Ariix since the founders were all USANA executives including one who was the president of USANA, Fred Cooper. Ariix does exactly the same thing USANA does as the whole compensation structure was copied from USANA. I have discussed Zenza and Yoli on other forums. I have also written about Fortune High Tech Marketing, YTB, and a couple others, but those forums removed everything I wrote because distributors complained about it (of course they would...). So I try not to waste my time researching others. Besides, I have little time to research or discuss USANA, let alone hundreds of other MLMs.

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  7. Thousands of newbies go there and expect to become rich, only to lose thousands of money in disappointment.

    Of course thousand lose money. Thousand also didn't do cr-p and expected return.
    Only a few can make it just like any business. You can try and try and if it didn't work, well you try other stuff because it might not be for you. Just like I know many others who tried and opened up a wine store or a laundromat and cake store, been there for like 2 years or less and fail. So they say wine and laundromate and cake bakery store is a scam right. yeah.. go get a life..ahhem I meant logic. They lost even more than a measly couple grand. Look, if you can't afford to a couple thousands for a business , DON'T DO BUSINESS.

    Like I always said - the easy the barrier, the harder it is to be successful. and vice versa in general. Lots of real estate agents drop out too because they just sit on their butt and don't do follow ups and don't market the property property. So by your logic, real estate is also a scam. So it's life insurance agents.

    you are justifying usana business because Kathy Kaehler is one of their public figures? You would be too if they paid you the money they pay her to represent them. You don't actually believe she is doing it out of her own free will do you?

    What I meant is that if it's is a scam, doyou think she will put her REPUTATION on the line. I sure won't even if they paid me. She is a public figure and media associate her with scam if usana is a scam. Geez, do I have to spell this common sense business logic out to you?.

    I hope there are more sites like this exposing Ariix, Beach Body, Herbal Life, and the rest of the mlm companies selling false dreams, and over priced product.

    I sure hope they do.. that way, I will stop. If there is none and only attacking on usanacr-p I will contintue to defend and therefore to me , this site , like all distributors, are bias.

    btw, herbalife is still around. amway is still around.. this site is losing the war buddy.

    Plus dr oz is puting his reputation on the line with usana. So if usana is a scam, dr oz rep will suffer. Same as Kathy. But yet, you chickens who are anti-usana is not putting out the face. Tracy Cohen at least put out her face when she is against mlm.

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    1. In response to "Of course thousand lose money. Thousand also didn't do cr-p and expected return.
      Only a few can make it just like any business.
      "

      No other business in the world has a failure rate like MLM. ALL other businesses in the world are structurered so that every single owner is able to profit. In USANA, no more than 12% of distributors in the best of circumstances can even make enough to recover the cost of their required product purchases. However, this would require that every downline is perfectly balanced. When other expenses are added in to the equation, 99% of distributors don't even make a profit.

      If you claim that most people don't do crap, then the problem isn't with them, it is with the distributors who are recruiting them in the first place. USANA distributors promote USANA as a get rich quick scheme. They tell USANA distributors to purchase the $1250 profressional enrollment pack, recruit half a dozen people and have them do the same as a quick path to becoming rich. Then these same distributors then claim that the reason so many distributors don't make any money is because they were lazy and didn't do anything.

      If USANA distributors were simply required to tell the truth about USANA, nobody would join and the company would go out of existance.

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    2. If you claim that most people don't do crap, then the problem isn't with them, it is with the distributors who are recruiting them in the first place. USANA distributors promote USANA as a get rich quick scheme. They tell USANA distributors to purchase the $1250 profressional enrollment pack, recruit half a dozen people and have them do the same as a quick path to becoming rich....
      If USANA distributors were simply required to tell the truth about USANA, nobody would join and the company would go out of existance.


      Actually not true. Although I agree with you it is the recruiter's fault, I disagree that no one would join if you tell the truth. If 10 people join due to recruiters not telling everything to them, then I would say about 3 people will join if they tell them the truth.

      They have to tell them this is not a get rich quick, this is hard work. You have to treat it like a business. If you don't do anything, you get nothing. Don't expect Michael Jordan or Bruce Lee to achieve greatness just by sitting there or just doing 1 hour per day work. Those work on their skills about a least 5 hours per day on average. Also in reall business you don't get paid for about at least 2 years, for this business you do get paid as in profit earlier. But again it's hard work. You also have obstacles and beliefs by others to overcome. Reason why I'm telling you this is that you are wasting your time and my time to do this.

      If you tell them this, about 3 out of 10 will join..and work on it...so your assumption nobody is wrong. Also I already have experience your definition of 'real' businesses and this mlm business. From a business stand point I see similarity. And yes I use this real tactic so I don't waste time on anyone. You don't want it, buzz off. If you do, be prepare to work with me helping you. Problem is most uplines just disappear after recruiting them. You downlines are like your babies or your flowers where you have to nourish them, and therefore you plant them at the best location. Many people just dump a bunch of seeds anywhere on concrete , bad soil, no sunlight. That is equalivant to saying get rich quick. But I pick my spot carefully. Thus it's stable.

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  8. Come on! This is just a voluntary work and must be trustworthy with evidence. There are many 'legalized' scam-based MLM companies out there... One will be exhausted just going thru all of these websites... Don't even mention research...
    USANA is a 'legalized' scam for now. That's why people are still having fun with it.

    Look... There's no cheap method to be healthy and rich. Shortcuts and instant success are what people want. Some entities like USANA will always exist as long as people are still believing in cheap methods to be successful.

    This guy here just wants to help others, probably his friends. That's all. Since everyone here is anonymous, stop being retarded pls...

    Just show your face and prove to the world the USANA is the best.You should do what you believe. Otherwise, contribute to the world if you think you can.

    Buying or selling usana is not contributing the world, but harming it. Do not convince others that you're saving the world by joining USANA. Do you understand? Just remember to donate more money to Africa and local community when you sell USANA... Not complain why you earn less.

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  9. Look... There's no cheap method to be healthy and rich. Shortcuts and instant success are what people want. Some entities like USANA will always exist as long as people are still believing in cheap methods to be successful.

    You are right. Shortcuts and instant success are what even bill gates are looking for. But it doesn't work that way. You have to work to get your business off the ground. Same with usana. Problem is people simplified everything and thus they think it's easy. If you want to open a wine store some will say good I support you.. but some also say it's very hard.. lots of cash on hand to buy the bottles without using credit. etc. No distributor will say this is very hard, are you sure you want to try. I wish many will say that. But if you want to be a real estate agent, people say go ahead, give it a try. So all real estate agency is a scam?
    You are also right. There is no cheap method to be healthy and rich. Usana is not cheap. Also you have to exercise and gym membership ain't cheap either. But gym membership alone without food is not going to be healthy and food without sufficient mineral and vitamins in the body is also insufficient. So you need all. D-mn I'm good.

    This guy here just wants to help others, probably his friends. That's all. Since everyone here is anonymous, stop being retarded pls...

    Look whose talking/writing.

    Just show your face and prove to the world the USANA is the best.You should do what you believe. Otherwise, contribute to the world if you think you can.

    I'm not saying usana is the best. there are other mlm which is better than usana.
    https://www.multivitaminguide.org/
    Usana comes 4th. Other the top 3 are more or less mlm. Douglas lab needs a prescription from the doc and is also very expensive. (like you said.. healthy doesn't come cheap).
    Reason why I am seeming pro usana is that people bash it without being open minded. If this was a usana loving site, I will have all argument against usana, but it is harder, that's why this site does do a good job to hate usana. Product is expensive, yes. Product is very good, yes. Scam business model? NO. I don't care if you say mlm stinks. But I think you are missing the point in saying the product stinks without first hand experience for a year.

    Buying or selling usana is not contributing the world, but harming it. Do not convince others that you're saving the world by joining USANA. Do you understand? Just remember to donate more money to Africa and local community when you sell USANA... Not complain why you earn less.

    So buy and selling alcohol and cigarettes is not harming it, man? What's your point. lmao.
    Dont say sh-t that you can't claim. Buy and selling with anything is harmful. Only donation is right, right?..but donation can be a scam to...and also without buy and sell, there is no business, without business there is no jobs without jobs there is no freaking donation.. geez. lmao with your logic and you are calling people retarded. Note that I"m saying buys and selling in general not with usana.

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  10. Interesting.. so what would prompt usana to have the same fate.

    http://mynewsla.com/business/2015/05/15/15m-settlement-approved-in-herbalife-pyramid-scheme-lawsuit/

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