USANA HealthPak versus USANA Essentials
The associate auto-order cost for the HealthPak is $108.00 whereas the cost for the Essentials is $44.06
USANA HealthPak contains a dosage increase of the following ingredients:
Vitamin D3: 200 IU (11.1% increase)
Vitamin K: 30 µg (50% increase)
Calcium: 400 mg (148.1% increase)
Magnesium: 200 mg (66.6% increase)
Boron: 660 µg (22% increase)
The HealthPak also contains the following additional ingredients:
Alpha-Lipoic Acid: 200 mg
Grape Seed Extract : 90 mg
Resveratrol: 30 mg
Raw material cost for the added ingredients contained in the 28 day supply of HealthPak are as follows:
Vitamin D3: 5600 IU costs $0.0028
Vitamin K: 840 µg costs $0.000042
Calcium: 11,200 mg costs $0.113
Magnesium: 5600 mg costs $0.0178
Alpha-Lipoic Acid: 5600 mg costs $0.336
Grape Seed Extract: 2520 mg costs $1.26
Resveratrol: 840 mg costs $0.252
Boron: 18,480 µg costs $0.0055
That's a material cost increase of only about $2.00 to go from the USANA Essentials to the USANA HealthPak. However, USANA charges an additional $63.95 for the HealthPak than the Essentials. Would USANA care to explain?
Update November 3, 2015:
For those who think the different packaging (box with individual daily packets versus the standard bottles) explains the $63.95 cost difference, I have a rude awakening for you. Go onto USANA's product page and choose "MyHealthPak". This allows you to build a custom box of morning and night time packets of your USANA vitamins. Choose only the Chelated Mineral and Mega Antioxidants (USANA Essentials) for your custom box and see the price you get. It is only $11.95 more for the Essentials to be packaged into a customized box similar to the one you get from the HealthPak.
This is very bad new for those who are struggling trying to defend the massive price increase from the $44.06 Essentials to the $108.00 Healthpak when the ingredient cost difference is only about $2.00!
USANA will have as hard of time explaining why it is ripping off its associates with the HealthPak as the US government has trying to explain why they spent $43,000,000 to build a gas station in Afghanistan that should only have cost $500,000 to build that eventually shut down anyway.
References:
Vitamin D3 - http://www.alibaba.com/product-detail/High-quality-vitamin-d3-Cholecalciferol-vitamin_60252744250.html?spm=a2700.7724838.35.1.TpvsaY&s=p
Vitamin K - http://www.alibaba.com/product-detail/SCIYU-supply-vitamin-k-powder_60234188263.html?spm=a2700.7724838.35.1.88P7ea&s=p
Calcium (Citrate) - http://www.alibaba.com/product-detail/Food-Grade-Calcium-Citrate-for-food_1401478593.html?spm=a2700.7724838.35.1.XjhwUn
Calcium (Carbonate) - http://www.alibaba.com/product-detail/Calcium-Carbonate_157254070.html?spm=a2700.7724838.35.1.Hht8tp
Magnesium (Citrate) - http://www.alibaba.com/product-detail/USP-BP-EP-Magnesium-Citrate_60029397086.html?spm=a2700.7724838.35.1.9YNCky&s=p
Magnesium (Amino Acid Chelate) - http://www.alibaba.com/product-detail/magnesium-amino-acid-chelate_60287665782.html?spm=a2700.7724838.35.1.46WzOq
Magnesium (Oxide) - http://www.alibaba.com/product-detail/feed-grade-powder-form-Magnesium-Oxide_1939085125.html?spm=a2700.7724838.35.1.IskKjR
Alpha Lipoic Acid - http://www.alibaba.com/product-detail/High-quality-Alpha-Lipoic-acid-1077_60203261469.html?spm=a2700.7724838.35.1.EMEvo3&s=p
Grape Seek Extract - http://www.alibaba.com/product-detail/98-OPC-Grape-seed-extract-Vitis_60275718741.html?spm=a2700.7724838.35.1.Ct1zQy
Resveratrol - http://www.alibaba.com/product-detail/High-quality-Resveratrol-Raw-Material-Wholesale_60130684258.html?spm=a2700.7724857.35.1.qfw1TF&s=p
Boron - http://www.alibaba.com/product-detail/High-quality-Boron-Citrate_1661897958.html?spm=a2700.7724838.35.1.d4HgBi
Hi how do you find out the cost of each ingredients?
ReplyDeleteA search on Alibaba for each ingredient in the product. I tried to find the "medicine grade" or at least "food grade" materials (rather than those used for cosmetics or other industrial uses). Then I took the highest prices I could find from the ranges they provided and used that for the calculations.
DeleteFor the example I gave in the article, I took the difference in ingredients and dosages between the Healthpak and the Essentials and based on the costs I found for the ingredients (typically given in kg or metric tonnes) I figured out what the raw material price difference was for the two products.
zzzz..
DeleteI'm so disappointed in you.. and shows your bias and trying twist things.
All you did is just take the ingredients !!??
Did you know the ingredients needs to be mixed together with machines and etc.. those are also cost.. labor. You forgot labor.
You don't just dump in all ingredients with cheap labor and then say here this is the product!
What about a restaurant.. they can just take all the ingredients too and just dump them together and say this should cost only 2 dollars to make but the restaurant is charging you 10 bucks!? You forgot labor rent cost, etc. And you call yourself a technical guy. smh.
And also how about a mechanic. The parts are cheap. Do you just dump it in together and hope the car works.!? What about mechanics labor and the and the machine and the rent they pay to help fix yo zam car.
The parts, labor, packaging, etc... is already covered in the cost of the Essentials. All the Healthpak is doing is adding in a couple more ingredients. Why should the customer be charged more than double what the Essentials already costs. You just don't get it. Those expenses were already being covered...
DeleteIf its been here for more than 20 years why HASNT this been on commercial shelves and is STILL a mlm based sale?
DeleteI can't wait to see these stupid MLM companies all get shut down. Here's one that recently got shut down, at least temporarily while they go through court, (Vemma):
ReplyDeletehttps://www.youtube.com/watch?v=8R8b7ZJASOg (presentation)
They operate in a similar fashion as Usana, binary compensation plan with some extra bonuses here and there. Many of the things the FTC is saying Vemma is doing that makes them illegal are similar things Herbalife is doing. If Vemma permanently gets shut down, Herbalife will be next and if that happens, lots of MLM companies will be in trouble including Usana since Herbalife is one of the heavyweights in the MLM industry.
These scams need to stop. It's 2015, how are people still stupid enough to fall for them?
Apparently, this vemma company is only 10 years old.. they must be stupid to be doing something that FTC investigated them..
DeleteHerballife and Usana is like over 20 years old.. They still exist because they are doing something right. Oh, Amway still exist..even after ftc regulation and so's herballife.
So by the time FTC gets to them if they do, I already earn my share while you are still working yo butts off for peanuts.
Dr Oz and many others reputation will be on the line if usana shuts down. So keep yo hopes up for nothing. Just like hwo you tell people there is false hopes for earning money with usana, there is false hope with usana shutting down jack ching bala bing.
I don't think you understand what I'm getting at. Herbalfe, Usana, Amway, NuSkin, and a few others are simply too big for the FTC to take down at the moment. Herbalife is still under investigation and many of the things they do is similar to Vemma. Since Vemma was taken down, the FTC now how more tools and power to go after the bigger guys. If Herbalife gets taken down, you really think Usana will stand a chance?
DeleteYes, they investigated Amway a few decades ago but as I said, the FTC was too weak. On top of that, there was some corruption at the time, things like the head of the FTC had a relationship with Amway.
I realize that you only care about your butt since you're saying you would have already made your money before the FTC shuts Usana down. That further proves to me that Usana reps making money don't care about the hundreds or thousands that don't. As long as they keep paying their autoship which puts money in your pocket, that's all that matters.
And Dr Oz? Really? His reputation was hit after being scolded like a little child at a senate hearing. Don't bring up Dr Oz, you'll lose credibility.
https://www.youtube.com/watch?v=WA0wKeokWUU
Who cares, I still bring up dr oz..
DeleteDon't hate them just because they are successful.. or more successful than you.
"...engaging in any marketing program that pays compensation for recruiting new members, encourages or incentivizes members to purchase goods or services to be eligible for bonuses or commissions, is a pyramid scheme,” said FTC Director Dana Brown
ReplyDeleteSound familiar, Usana reps? It's only a matter of time.
You are such a hypocrite and cherry picker.
DeleteFrom that phrase, you are saying tdbank, citibank, chase and hsbc are pyramids scheme because they also do "..; marketing program that pays compensation for recruiting new members". They pay 400 bucks to people who deposit big money into a new account. I just did. 60k into gold account (yes, 100k from usana earrnings) as new member. So I guess those banks are pyramid scheme right. SMHROTFLMAO
How is this cherry picking? That was a statement made by the FTC regarding pyramid schemes. And your rebuttal is pathetic. Are bank members required to pay monthly fees in order to collect commissions from the new bank members they themselves or the upline recruited, who are also required to pay monthly fees and do the same, creating an endless chain of recruiting?
DeleteBesides, what does paying someone $400 who opens an account with a large deposit have anything to do with the statement made by the FTC? The person opening the account gets the $400, not someone else.
No, the company is giving them 400 buck to entire to recruit them to join. That is also the same thing as what you are saying, using money as a means to get people to join. So by that quote above where he selectively quote it, citibank and other banks are doing the same thing. If he wants to make a big statement.. post the freaking whole thing.
ReplyDeletebtw, I am disappointed in you. You still CANNOT bring down usana after all these years. Get something going other than this blog. Other people who are pro usana can also type and write something like this..so you and they are evenly tied. You have no edge. In fact, you are losing because as they blog, they are also earning money and also doing what you call 'scamming' people. If you REALLY want to help and stop preventing them from 'scamming', do a rally in front of the governemnt or something to REALLY stop it instead of passively writing a blog here. (It's like you telling pro-usana distributors who claim it cures their health problems to go to fox news or something. So now I'm telling you to go to fox news and dare you to go to fox news to say usana is bad. You say you have prove, then go ahead!.)
Also It's no use if you can only stop 1 or 2, but not 2000. Plus most of them I notice are not just from the US.. so English is not their first language and therefore WILL NOT COME TO THIS SITE, which means you lose again. It will be another 30 years or maybe you will not even be here, and yet nothing still gets done. Meanwhile those other usana distributors are still making money even in small amounts while you grow old and losing money trying to hang onto this site.
It's like this site is your venting blog against usana because they did something bad to you. Venting online doesn't do much other than the person venting to relief stress. Action does. Post it on facebook. Get media attention. You see, I don't see you going ANYWHERE with this that will shut down your nemesis, USANA. So either do something beside this passive blog to shut down usana else stop wasting your time!.
To the poster above, you nailed it. If watch dog really wants to shut Usana down he/she would stop hiding and go public. I personally believe watch dog is employee of Usana. He/she simply has access to too much inside information. He/she may even be using this blog to get extra attention to Usana. No such thing as bad publicity.
ReplyDeletewow.. no reply.. guess usanawatchdoggie got shut down by poster above.
ReplyDeleteWhy should I reply to personal attacks? I'm not going to post my identity here because crazy people who's livelihood depends on deceiving and scamming others would not hesitate to harm me or my family. Rather than discuss the issue, many USANA associates would rather mud-sling to distract from the real arguments...
DeleteWay to go watchdog. You continue to bark but have no bite. Again if your intentions were pure, and you truly wanted to save people from this evil company, then you absolutely would go public and get the proper authorities involved to investigate/close down usana. This would otherwise be known as whistle blower. I am not and never have been a distributor so I have nothing to gain or lose if you take your arguments public. For someone so h*ll bent on maintaining this blog supposedly for greater good, claiming all your negative points on Usana being scam are valid, questioning/insulting anyone who even remotely says anything positive about the company, having the audacity to blast anyone who says they feel better while taking the vitamins, why not take this hatred and do something positive with it like be the whistle blower and hero who finally closes Usana down? No personal attack here just stating the obvious facts like you seem to really enjoy doing as long as the argument supports your cause. For someone so dead set against Usana, until you do something productive with the years of research you do, stop wasting peoples time here. Besides you claim Usana already knows who you are, so what are you afraid of?
ReplyDeleteSo Indonesia is now up and running..
ReplyDeleteThey are gaining momentum.
Most comments here are turning the tide to pro-usana.
This site is getting weaker by the day.
You are not stopping them... or cannot stop them unless government comes in and stop them. I suggest you send all your research of antiusana and send it to the government. Maybe they will buy it. But again government isn't even taking a look at usana after the 2007 fiasco.
I want to ask watchdog and all the readers
ReplyDeleteI work at the government, I know some company has 50% margin event more for their
????? you don't make sense.
Deletecomplete your sentences... did someone cut you off on purpose.
Read the comment below, and please reapond
DeleteI want to ask watchdog and all the readers
ReplyDeleteI'M NOT IN ANY SIDE
I work at the government, I know some company has 50% gross profit, but for this MLM company has even more gross profit (about 82%). Where the money goes? This MLM company pay about 80% from the gross profit for the salesperson/administration/general expenses (wich part is has the biggest portion?). The cost goods of sold of this MLM companiy is about 18%. In other words, the cost of making a product is just about 18% from the selling price, lets say the product price is $100 and the cost for the product just ($100*18%) "just seek for your self"
So? Is there anyone who can make the best quality product with low cost? Yes your'e right.....
The real story is
USANA just opened couple days ago in INDONESIA (16 Nov 2015), so I'm one of the prospected "business owner". I heard the product can cure or treat or reduce whatever it call and my father in law has a cancer
I want to ask everyone here to give me a strong prove if the statement is true
And
Give me a strong reasons for joining this business
You wrote "the cost of making a product is just about 18% from the selling price, lets say the product price is $100 and the cost for the product just ($100*18%) "just seek for your self""
DeleteNot really sure what your point is or your relevance with the government. USANA's cost of goods sold is 17.6%. Their biggest expense is the Distributor Incentives they pay primarily to the top of the pyramid scheme (43.5% of sales). The HealthPak costs USANA about $19 to make, where most of that is packaging. The cost of the vitamins and minerals is very little (about $6). USANAs research and development expense is less than 1% (0.7%) and makes up 75 cents of the HealthPak.
You wrote "Is there anyone who can make the best quality product with low cost? Yes your'e right....."
The only reason USANA's Cost of Goods Sold is 17.6% is because they overpriced the product so they can afford to pay an exorbitant commission and bonus to the distributors at the top of the pyramid scheme. If USANA did not operate a pyramid scheme, then their products would be more affordable and their cost of goods sold would be closer to 30% while their distributor incentives would be 5% rather than 43.5%. Do you understand that USANA is suppose to be selling their product to distributors who are the suppose to be the real sells of the product? Instead, USANA treats the distributors as the retail customer (selling the product at almost 6 times their cost). How are distributors suppose to retail something that they are already paying too much for? The whole problem is that USANA runs a pyramid scheme and the biggest expense of USANA is to pay those few distributors at the top of the pyramid scheme.
You wrote "I heard the product can cure or treat or reduce whatever it call and my father in law has a cancer"
Do you have those claims in writing? It is illegal for USANA distributors to make these claims because they are untrue. No vitamin supplement can cure cancer. You'll most likely need a bio-engineered virus or nanite that is programmed to specifically target cells that contain the DNA signature of the cancer. You should report anyone who is making such health claims about vitamins to the same government you work at.
I want to see this company go down. Thank You. Have considered a law degree?
ReplyDeleteStumbled across this blog after someone recommended USANA products to me. I dont really have an opinion on the company yet, but i have to say this argument is of such poor quality.
ReplyDeleteLet's use Luxury car's as an example. The raw materials used to be build a Ferrari is not THAT much more expensive than the raw materials used to build a Toyota. (Certainly not hundreds of thousand's of dollars more expensive anyway.) Does that mean there is something ethically wrong with Ferrari's? Of course not.
1). There is so much more that goes into a product apart from the raw materials. With a Ferrari, it's things like design, build quality, durablility, performance etc.
With Vitamins, it's Bioavailability, Potency, Absorption etc.
If you knew a little about the manufacturing of supplements and vitamins, you would understand quite well, that just mixing raw materials together in the right quantities does not create the right drug. There is so much more to it, and based on my preliminary research on USANA, it seems that they understand this concept too.
2). There is absolutely NOTHING wrong with overpricing things. I'm not sure if USANA is overpriced, but isn't that what a companies marketing plan is designed to do? Find the price point that is low enough that people will still buy, but high enough that they remain as profitable as possible.
There are so many products out there that could be described as overpriced. That however is not for you to decide, but the individual consumer.
I think your argument here is quite flawed. I am not an associate of the company btw. I will however give the products a try, because they do seem quite impressive.
The Essentials already costs associates $44.06. This already includes all the pharmaceutical good manufacturing practices and labor in the creation of this multivitamin. USANA then adds $2.00 worth of ingredients to their Essentials and they call it "HealthPak" and sell this 28 day supply to their distributors for $108. That's $1404 + $130 in shipping... And USANA's suggested retail price is $132.
DeleteI just wanted to show what USANA Distributors are actually buying.
HealthPak distributor price: $108
Cost of sale expense (17.6% of sales): $19 (about $10 in packaging, $3 in labor, and $6 in vitamins & minerals)
Selling, General, & Administrative expense (22.6% of sales): $24.42
USANA Earnings (16.3% of sales): $17.58
Commissions & Bonuses expense (43.5% of sales): $47 (which primarily benefits only 1% of distributors who are at the top of the pyramid scheme)
A good multivitamin company would figure out how to get $6 worth of vitamins and minerals to their customers as low of price as they can while still making the company money in the process. USANA is more focused on running a pyramid scheme instead.
Sorry, but if I was running a vitamin company using distributors to market and sell my product, I would not be running a pyramid scheme. There would be no upline/downline hierarchy, no "point" system, and my distributors would make 5% commission whenever they sell a product. What would this do? This would make the product much more affordable for my distributors to purchase and resell for a very good profit margin. Rather than my distributors buying a HealthPak for $108, they would only pay $64.20 by cutting the commissions & bonuses to 5% of sales. My suggested retail price would be 50% above the distributor's cost, which would be $96.30. Now those distributors that actually retail my HealthPak could make $35.31 for selling the Healthpak RETAIL for $96.30. None of my distributors would be forced to purchase product to participate in some compensation plan. Inventory purchases would be completely voluntary.
My way cuts the distributor's cost for the Healthpak from $108 to $64.20, a 40% reduction. My way makes the product much more affordable to the general public while allowing my distributors to make a substantial profit margin for retailing & marketing the product. My way always pays commission to every distributor who sells a product.
How am I able to achieve this? By simply eliminating the massive pyramid scheme USANA is currently operating.
Would you rather pay $64.20 or $108 for your HealthPak?
Why don't you post this in social media and to USANA head quarters if you think your way is better and you have proof and analysis. Chicken maybe? No it's not a personal attack. It's a fact that I"m challenging you to do it.
DeleteThe fact that you are too chicken to even do that shows it's all talk and no walk and all bluff.. you can throw out numbers, but so can they. If you think YOUR WAY is the BETTER WAY.. THEN prove it to the USANA's distributors. Every one has they preferred way. My way is also different from YOUR way. But too bad you aren't strong or wealth or powerful enough to make any impact to dent usana. So it's pointless to say whatever YOUR WAY is. Your way might also be wrong way as what you think and calculate is based on your bias. Plus you ain't a business person.
In fact, Microsoft earn BUCK LOADS of money from HUGE of profit margin. In fact their profit margin is MUCH HIGHTER than what you just mentioned. So I guess microsoft is also a scam from your definition.. That is business. Look a the drug company that was selling $1000 a pill for hepatitis. Yes $1000 a pill. Did you mention ANYTHING about it? No. Their profit margin is SUPER SUPER HIGH. I don't see you going to tell people it's a scam when in fact it's robbery. Much more that usana's crap.
Again usana and other businesses, INCLUDING the drug companies, that sells $1000 pill, have people to calculate the optimize profit margin. Maybe 64 bucks is optimal so the company can sustain to make a good profit. Do you also know that a lot of import export business sell stuff to a 60% margin. I don't think so from what you write. Cost of goods is 1/3 the actual retail price!!. You buy a freaking iphone case that cost 15 bucks but ebay can sell them for 2 bucks. WHY?? because the case only cost 1 buck. or less. So that is a scam in your definition.
Take a business course or in fact do some real business before you start analyzing it. I worked with both engineers and business people, and I came from both sides... and I can tell you are thinking like an engineer. That's why some companies fail with only engineers running them because they have a product, but no business profit computing sense even if they are superb at math. It's not a non-profit institution dude.
May I ask you who recommended to you. In fact I think everyone who post here and say they got recommended by someone to post their recommendator's name and let watchdog who have so much time on his hands to dig dirt on them.
DeleteYes this is me just call me the "question guy" or "QG"
DeleteAbout the ferrari vs. USANA's suplement vs. HEPATITIS PILL
Are those same?
With cara like Ferrari and other super cars brand we can have pride and life style of the rich and famous. Answer this "if you have tons of money and you are a rich and famous person that every people know you, will you buy this car?" Right....
Hepatitis pill is a drug to help cure the hepatitis and for "life saving drug" and you only can comper it with other life saving pills, not "suplement with best quality (they say)". Answer this. "You or Your love one have cancer, will you do anything to save you or your love one including buy this very expensive drug?"good thingking....
USANA HEALTH "SUPLEMENT" yes I don't know is there any USANA's product said that is a drug for cure illness? "you can use this for prevent the illness" really? Come on guys.... your healty lifestyle and mindset about healthy living is the most important.
Basic needs are, CLOTHES, FOOD AND HOME TO STAY
CLOTHES you can answer what is for right, but if you prefer running naked all day I can't argue
HOME TO STAY, Where you sleep tonight? If you are a hobo, I can't argue.
FOOD is for your source of energy, energy for you to do what you do. If your food is not healthy and you didn't use your energy you know what will happend to you
And you still want use this supplement? OK, its allright? Are you already proof it? You keep your un-healthy lifestyle and un-healthy food and no workout and you consume your supplement are you still fit and healthy? And then until now you never sick? And never use any other medicines? Aspirin or paracetamol? Great....
You still want to compare it with ferrari and hepatitis pills? (Sorry no offense)
Is someone work in the live/medicsl insurance company with riders or benefits for hospital plan? May I ask you, Why insurance company did not covers supplement?
And please answer mu previous questions
Who recomeded me is someone who work in jakarta (I still respect him)
And why you don't post in social media?
Social media can shutdown or banded the account right? And if the traffic is high, the owner who have the account can make it to get money from adds *I bet you are the smart person who knows a lot* (CIMIW watchdog)
GUYS, STILL..... I DIDN'T GET THE ANSWER
1. Proof about the product can curing/threat/reduce or anything cancer or other diseases
2. Strong reason for me to join the business
One more thing
DeleteIs already stated about how much they spend for R&D and the all cost for making the product
It all said in FINANCIAL STATEMENT *you can ask someone who know better abouy reading financial statement*
and it can't be manipulated, because the company is listed in NYSE
QG
(For watchdog, nice to know you)
USANA spends less than 1% in Research and Development. See my posting regarding USANA spending less than 1% on Research and Development
DeleteBelieve me, I know what's in USANA's SEC filings. What I believe is more important and is another reason I have this blog is to explain what is NOT in USANA's SEC filings.
Pos it on facebook and let the onslaught begin.
DeleteYou are afraid.
In fact, if you post your findings on facebook, twitter and all, you MIGHT catch the attn of the govt which will help shut down usana. Because it will have commotion and usana will come after you and you can fight them with legal action and make a splash so EVERYONE will know how bad usana is.
But no, you like to waste time on this site which doesn't help as much as if you had post on social media. chicken. That's what I smell.
In response to "Why don't you post this in social media and to USANA head quarters if you think your way is better and you have proof and analysis."
DeleteUSANA does not want to do that because the only reason a company chooses to run a Multi-Level Marketing company is to operate a product-based pyramid scheme. The main purpose of the company is to inventory load their distributors with overpriced product. The product is overpriced in order to pay hundreds of millions of dollars to a very small percentage (less than 1%) of their distributors who are at the top of the pyramid scheme. These distributors have tens of thousands of additional distributors in their downline who all joined USANA with the same intent, to become rich like those at the top of the pyramid scheme. All of these distributors are required to purchase product (whether they themselves have customers to sell to or not) in order to participate in the business venture. These required purchases fund the pyramid scheme which pays massive commissions and bonuses to the few at the top of the scheme.
And if you think USANA does a lot of research and development, think again. USANA spends less than 1% of their sales on R&D.
You are obviously missing my point. I don't care what USANA sells their product for. They can sell it for whatever they want. I just think the distributors, the people who are considering joining, and the very few customers they have outside of the distributorship have a right to know just what they are paying for. Very inexpensive vitamin & minerals put into very expensive packaging with an absurd markup for the sole purpose to fund and operate a massive pyramid scheme to enrich a couple thousand distributors worldwide who are at the top of the pyramid scheme. USANA's earnings represents 16.3% of sales, which is no problem. However, distributor incentives represents 43.5% of sales, which is what makes the product so incredibly overpriced.
Here it is in a nutshell
USANA manufactures a product.
The product is sold to a network of distributors.
The distributors are arranged in a binary tree.
Distributors collect group volume points when their downline purchases inventory.
These points are converted to commission in a very convoluted balancing act.
In order to collect commission, you must personally purchase over 100 points of inventory (200 points for multiple positions in the pyramid).
The more distributors in your downlines, the more commission you can collect as long as everyone pays to play.
66% of united states USANA distributors in 2011 (last reported year I might add) made zero commission.
There are over 4 distributors for every 1 preferred customer.
The majority of distributors quit by the end of their first year.
About 99% of distributors do not many a profit.
MLM company Vemma, a proud member of the Direct Selling Association (DSA), is recently shut down by the FTC for operating a pyramid scheme. This MLM company sold energy drinks in almost the exact fashion as USANA does, primarily to their distributors. Very little retail sales take place as the drink was overpriced, much the same way as USANA.
Herbalife is currently under investigation by the FTC for allegedly operating a pyramid scheme, much the same as Vemma did and USANA does now. Every MLM company operates the same way, which inventory loads its distributors with overpriced low market demand product that distributors cannot resell.
You can continue to distract from the real argument all you want by claiming there is nothing wrong with a company making money. As I have stated already, that isn't the point. The point is that the products are overpriced in order to fund a massive pyramid scheme. The point is that distributors are paying $108 for the HealthPak so USANA can pay $47 to the top of the pyramid scheme. If you don't see the problem with that, then you are thinking like a scam artist.
In response to "Pos it on facebook and let the onslaught begin.
DeleteYou are afraid."
By all means, link my articles to Facebook if you think it will bring the wrath of USANA down on me. There is a little icon at the bottom of each of my articles just for that very option.
Thanks in advance!
sigh.. from what watchiedoggie post..it shows that watchiedoggie is a hypocrite and obviously don't know jack about business and based on all your numbers, you lost credibity and justification to me and many business savvy people who knows numbers by saying this:
Delete"A good multivitamin company would figure out how to get $6 worth of vitamins and minerals to their customers as low of price as they can while still making the company money in the process. USANA is more focused on running a pyramid scheme instead."
and here:
The point is that distributors are paying $108 for the HealthPak so USANA can pay $47 to the top of the pyramid scheme...
Look at shark tank show.. and other business people. They WANT HIGH MARGINS of profit. If it cost $1 to make.. they want it to sell for as high as possible.. $10 to retail or 90% that is MUCH MORE THAN the usana's 50% profit margin. I talked to some business people and even shark tank with Mark Cuban etc said the same thing.. it cost $20 bucks to make and everything, and you are selling it for $30? No, that is not enough to make a profit.,..no deal.
If you know any about import export business which I assume you don't based on your analysis of number, they require 2/3 profit margin. So a product like that usana which cost 60 bucks to make, will need to be selling it for $180..but it's only selling for 120.
From what you just posted.. you are just a little technical guy who thinks he knows number but doesn't know enough business number to know what you are talking about to run a profitable business. (I was a techie once, but I see both sides)
Also whatever you are describing here can be applied to pharmaceutical companies.. The profit margin there is much higher than usana...and some have to have recalls all the time and side effect. Don't care if usana has side effects or not and that is not the point of the argument. The point of the argument is that you think you know stuff by throwing all these numbers out, when in fact you don't know how business, ANY business operated and start saying usana is a scam. You might as well tell usana or other companies to be non-profit. In fact, I dare to say this.. if you think usana is a scam, the drug/pharm industry is even more of a scam. I know because I know someone who works inside that industry who does the numbers.
Why don't you link your own articles and create a fb page for it. I'm daring you because you are the one who is so anti-usana with proofs and everything. Problem is, you are trying to divert any onslaught from distributors and usana to someone else so you don't have to deal it with it. You want someone to be a surrogate. Nice try. You have to take responbilities for you actions. Your action was to create this website when FB wasn't even popular. Now fb is popular and so is twitter. NOw it is, so why don't you have the guts to do it.? That's why I'm saying, UNTIL YOU DO IT as in creating a usanawatch facebook page, you can't bring down this company. So you are wasting your time, and I'm betting that you won't do it. That's my challenge. Since you won't do it, it's all fluff whatever you say here.
ReplyDeleteI already had a facebook page for USANAWatchDog many years ago. USANA complained to facebook and the page along with my account was banned.
DeleteIf you are so concerned with how I blog, and think I should publish this information on social media, then link it with your own account.
So rather than whining about how I blog, why don't you actually answer a question? Do you feel USANA distributors should pay $64.20 or $108 for the HealthPak? The ONLY reason it costs $108 instead of $64.20 is so USANA can dish out the difference to the top of the pyramid scheme. Remember, in the figures I presented USANA would make the SAME earnings for that product. And the ONLY reason you would feel the $108 is justified is because you are defending the whole premise behind the pyramid scheme.
I'm not concerning how you blog. I find it amusing that for 10 years, you still haven't taken down this company while it's stock is still all time high.
DeleteAnd nice try ... you might has well link it to your own personal fb page so that people will know who you are. You don't want the own slaught of people bashing onto you so you are trying to do it on my and other's expense. And you say usana people are doing it at others expense smh. That's why I say you have to walk the talk to link to your own personal page. You have a fb page for watchdog and applaud you for that..but if you link it to your personal page, I even applaud you more for it as you are walking the talk.. it's harder for them to take down a personal fb page then a page that is to rag out a company. You try doing that to msft, you will get the same result.
Like I said, the price is whtever people is wanting to pay. If the want to pay 200 bucks, that is fine too. Right now, that 108 dollars is still a good price for many people because the company is profiting. If it is overprice like you say, do you really logically think that people will buy. No, people will stop buying and the company will have to lower the price! The fact people are still buying means it's a price they are willing to pay for. Like I say, you don't know much about business because this is basic concept of supply and demand. There is a reason why people buy. If it is cr-p like how you always said, the company will be out of business. But it's still going on and people still paying for it FOR YEARS. So that means the product still works. That alone destroys all your hard work of number analysis why it's overprice or etc. Overprice simply means people will stop buying, but people still are.
Heck, you buy at cell phone case for 15 bucks. or 10 bucks. but the fact is, it take less than 1 dollar to make. So I guess you got scammed too...and oh.. it's overpriced right. Thank you. I win.
Kudos to you, Usana Watch Dog. Thanks for the great information and the calm demeanor in which you tirelessly deal with the ignorant, rude trolls of the internet who can barely string together a sentence in the English language without embarrassing themselves.
ReplyDeleteIt's funny and sad that the masses have protested against the "1%'ers" and yet continue to fall prey to easy decipherable scams like MLM's. Even when the information is so clearly laid out in front of them, they are unable to grasp basic arithmetic.
I am using quite a bit of your information in a presentation I am creating for my wife who recently joined Usana against all arguments I could make at the time. Her upline lured her in after befriending her in a drop-in clinic for new mothers. They really do thrive by preying on the most vulnerable in our society.
Do you have any suggestions on the best angle at which to persuade her to leave?
Thank you for the kind words. I just published what I believe is a very compelling argument regarding why USANA products cost distributors so much and how they are about 3 times what it could cost. It is probably a very good angle to persuade any USANA distributor to leave. USANA Overcharges Distributors In Order To Fund Pyramid Scheme.
DeleteGood luck, and let me know her reaction to it. Because MLM distributorships act much like cults, it is very difficult to explain anything to them. They are trained to completely disregard anything negative anyone says about USANA. That's the first thing they learn.
Another great article I will definitely use. I will target the specific products she is using and show the price comparisons while debunking the unproven quality claims Usana makes.
DeleteI will then follow up with the price difference between the Essentials and Health Pack. Clearly a disguised price hike in order to sustain the growing number of pyramid levels and necessary commission payouts.
Thank you
Compliance is already aware of this guy. He's just venting his frustrations so it's not even worth visiting his page. They even tried to answer his questions, but again he approves only what he wants to.
Delete"Compliance"??? When has compliance ever tried to answer anything I have posted? I approve every single comment no matter which side of the argument they are on. I routinely check the "Spam" filter to see if something slipped by, and every so often I find a real posting in there and approve it. If you don't see your comment appear after a couple days, email me and I will dig it out of the spam filter.
DeleteMy blog is the most fair USANA related blog around because I post everyone's comments. Go look at pro USANA blogs and try to find any negative comments posted there.
I will however not allow inappropriate language to be posted and if anyone tries to do it, I do not post those. There have been a few of those, but the content was really thing more than a stream of personal attacks directed towards me.
My blog is the most fair USANA related blog around because I post everyone's comments. Go look at pro USANA blogs and try to find any negative comments posted there.
DeleteActually, I will have to give that credit to watchdog. Tracey Cohen is anti-usana and she never allows anyone to argue pro-usana with her unless she is able to come up with something good to counter attack. That shows that woman's ego. Why would anyone hire her as a anti-fraud consultant is beyond me.
Usana watchdog is nothing more than a bird brain troll. Usana watchdog probably writes his blogs from his mother's basement 😂
ReplyDelete