UNITED STATES
USANA ASSOCIATE PRICE LIST
VS
NBTY EQUIVALENT PRICE LIST
See what USANA products could cost if manufactured by a non-MultiLevel Marketing company.
|
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By using USANA’s cost to manufacture each product and applying that same figure to NBTY’s costs, you can see how much more USANA charges it’s distributors for their products, which is primarily due to USANA’s very high distributor incentive expense (distributor commissions and bonuses). This also eliminates quality, potency, and pharmaceutical GMP differences the two companies might have by using the same manufacturing cost. See full detailed explanation at the bottom of this article.
USANA DISTRIBUTOR PRICE represents the discounted price USANA gives their distributors. (10% below preferred pricing)
NBTY DISTRIBUTOR PRICE represents the equivalent price if NBTY manufactured the same product instead.
USANA 2014 10K SEC Filing – Average Cost of Sales: 17.81%
NBTY 2014 10K SEC Filing – Average Cost of Sales: 54.29%
Approximated NBTY DISTRIBUTOR PRICE = (USANA DISTRIBUTOR PRICE * 17.81%) / 54.29%
| ITEM # | PRODUCT | USANA DISTRIBUTOR PRICE | NBTY DISTRIBUTOR PRICE Approximated |
|
| ESSENTIALS | 107 | MyHealthPak | Custom | Custom * 0.328% |
| 100 | HealthPak | $108.00 | $35.43 | |
| 101 | Essentials | $44.06 | $14.45 | |
| 101 | Essentials Kosher | $44.06 | $14.45 | |
| 101 | Essentials Green | $44.06 | $14.45 | |
| 102 | Chelated Mineral | $14.81 | $4.86 | |
| 103 | Mega Antioxidant | $34.16 | $11.21 | |
| 106 | Mega Antioxidant without Vitamin K | $34.16 | $11.21 | |
| OPTIMIZERS | 109 | Vitamin D | $17.96 | $5.89 |
| 110 | Proflavanol C100 | $35.96 | $11.80 | |
| 120 | Active Calcium | $17.06 | $5.60 | |
| 121 | Active Calcium Chewable | $22.46 | $7.37 | |
| 122 | BiOmega | $20.21 | $6.63 | |
| 123 | CoQuinone 30 | $35.06 | $11.50 | |
| 126 | Ginkgo-PS | $29.65 | $9.73 | |
| 128 | Palmetto Plus | $22.01 | $7.22 | |
| 129 | PhytoEstrin | $18.86 | $6.19 | |
| 131 | Procosa | $27.90 | $9.15 | |
| 134 | Visionex | $28.31 | $9.29 | |
| 141 | Pure Rest | $14.36 | $4.71 | |
| 143 | Booster C 600 | $28.31 | $9.29 | |
| DIGESTION/DETOX | 108 | Probiotic | $23.36 | $7.66 |
| 111 | Digestive Enzyme | $26.96 | $8.84 | |
| 135 | Hepasil DTX | $30.56 | $10.02 | |
| 226 | Fibergy Plus | $26.96 | $8.84 | |
| MOTHER/CHILD | 104 | Body Rox | $20.25 | $6.64 |
| 105 | Usanimals | $12.56 | $4.12 | |
| 144 | BiOmega Jr. | $15.26 | $5.00 | |
| 151 | BabyCare Prenatal Essentials | $44.06 | $14.45 | |
| 165 | Children’s Complete Duo | $22.46 | $7.37 | |
| NUTRIMEAL | 209 | Nutrimeal Free, Protein Drink Mix | $26.96 | $8.84 |
| 202 | Nutrimeal Chocolate Whey, Protein Drink Mix | $26.96 | $8.84 | |
| 210 | Nutrimeal Dutch Chocolate, Protein Drink Mix | $26.96 | $8.84 | |
| 211 | Nutrimeal French Vanilla, Protein Drink Mix | $26.96 | $8.84 | |
| 212 | Nutrimeal Wild Strawberry, Protein Drink Mix | $26.96 | $8.84 | |
| SNACKS & BARS | 236 | Peanutty Bliss, Protein Snack | $27.86 | $9.14 |
| 235 | Choco Chip, Protein Snack | $27.86 | $9.14 | |
| 237 | Fudge Delite, Protein Snack | $27.86 | $9.14 | |
| 238 | Berry Nutty™ Nutrition Bar | $35.96 | $11.80 | |
| RESET | 251 | 5-Day RESET Kit | $99.86 | $32.76 |
| 251 | RESET Kit 4-Pack | $346.50 | $113.68 | |
| ACCESSORIES | 752 | BlenderBottle | $5.36 | $1.76 |
| 754 | Pedometer | $13.46 | $4.41 | |
| 291 | Pedometer / BlenderBottle Duo | $16.16 | $5.30 | |
| REV3 | 138 | Rev3 Energy | $28.76 | $9.43 |
| 139 | Rev3 Energy Surge Pack | $28.76 | $9.43 | |
| 139 | Rev3 Energy Surge Pack | $47.70 | $15.65 | |
| SKIN CARE | 300 | Gentle Daily Cleanser | $15.26 | $5.00 |
| 301 | Hydrating Toner | $12.56 | $4.12 | |
| 302 | Daytime Protective Emulsion w/ SPF 15 | $31.73 | $10.41 | |
| 303 | Night Renewal Crème | $30.15 | $9.89 | |
| 304 | Serum Intensive | $35.33 | $11.59 | |
| 305 | Perfecting Essence | $41.63 | $13.66 | |
| 306 | Eye Nourisher | $20.66 | $6.78 | |
| 307 | Rice Bran Polisher | $13.46 | $4.41 | |
| 308 | Nutritious Crème Masque | $15.26 | $5.00 | |
| BODY & HAIR CARE | 311 | Energizing Shower Gel | $14.36 | $4.71 |
| 753 | Shower Gel Pump | $0.23 | $0.07 | |
| 312 | Revitalizing Shampoo | $14.36 | $4.71 | |
| 313 | Nourishing Conditioner | $15.08 | $4.95 | |
| 314 | Firming Body Nourisher | $19.94 | $6.54 | |
| 315 | Intensive Hand Therapy | $12.15 | $3.99 | |
| 391 | Natural Loofah Glove | $4.05 | $1.33 | |
| 391 | Body Polishing Glove | $3.56 | $1.17 | |
| 399 | Natural Whitening Toothpaste | $7.47 | $2.45 | |
| 760 | Mirror | $4.95 | $1.62 | |
| COMBINATION PACKS | 350 | Deluxe Pack w/ Perfecting Essence | $145.67 | $47.79 |
| 350 | Deluxe Pack w/ Serum Intensive | $145.67 | $47.79 | |
| 350 | Deluxe Pack 4-Pack w/ Perfecting Essence | $382.50 | $125.49 | |
| 350 | Deluxe Pack 4-Pack w/ Serum Intensive | $382.50 | $125.49 | |
| 351 | Sensé Basic Pack | $72.90 | $23.92 | |
| 351 | Sensé Basic 4-Pack | $190.80 | $62.60 | |
| 354 | Sensé Hair & Body Pack | $67.95 | $22.29 | |
| 360 | Sensé Shower Pack | $37.80 | $12.40 |
By
calculating USANA's estimated
cost to manufacture each of their products, we can have NBTY
manufacture the same exact product at USANA's estimated cost and
determine what a distributor could pay if purchased from NBTY rather
than USANA. This reveals how USANA
distributors are paying way
too much for
USANA product so USANA
can fund their pyramid scheme (see
associate incentive expense below).
Example:
USANA HealthPak sold to their distributors for $108
It costs USANA approximately $19.24 to manufacture the HealthPak ($108 * 17.81%)
Now have NBTY manufacture the same exact product and have it cost them $19.24 to manufacture
NBTY could sell the HealthPak to their distributors for only an estimated $35.43 ($19.24 / 54.29%)
Why should USANA distributors be overcharged and left holding the bag?
|
USANA
|
10-K
2014 SEC
Filings
|
|
Dollar
value in thousands
|
Value
|
%
of Net Sales
|
Net
Sales
|
$790,471
|
100.00%
|
Cost
of Sales
|
$140,794
|
17.81%
|
Associate
Incentives
(Commissions & Bonuses)
|
$349,044
|
44.16%
|
Selling,
General and Administrative (SG&A)
|
$184,531
|
23.34%
|
Advertising
(part of SG&A)
|
$4,942
|
0.63%
|
Research
and Development (part of SG&A)
|
$5,128
|
0.65%
|
Earnings
from Operation
|
$116,102
|
14.69%
|
NBTY
|
10-K
2014 SEC
Filings
|
|
Dollar
value in thousands
|
Value
|
%
of Net Sales
|
Net
Sales
|
$3,205,778
|
100.00%
|
Cost
of Sales
|
$1,740,417
|
54.29%
|
Advertising,
Promotion and Catalog
|
$202,754
|
6.32%
|
Selling,
General and Administrative (SG&A)
|
$952,533
|
29.71%
|
Goodwill
& Intangible Asset Impairment Charges
|
$207,334
|
6.47%
|
Earnings
from Operation
|
$102,740
|
3.20%
|
Detailed Explanation:
As
a distributor, your job is to retail
product to customers
and the reward is a decent profit margin on the sale. However, USANA
has chosen to make commissions and bonuses (distributor incentives)
the primary reward. USANA pays commission to distributors who have
generated "Group Sales Volume" points from product
purchases made by either preferred customers or downline
distributors. As a result of USANA's compensation plan, USANA pays
out 43.5% of their sales as distributor incentives, which is reported
in USANA 2014 10-K SEC filings. To put in perspective, the HealthPak
sells to USANA distributors for $108. From that, $46.98 is used to
pay commissions, which does not go toward the distributor who retails
product, but rather primarily
to those with the largest downlines.
This
enormous expense forces USANA to drastically raise the price their
products are sold to their distributors to the point distributors
cannot realistically retail the product,
not to mention preferred customers get the product at the same price
distributors get it. This causes distributors to focus on selling a
business opportunity and recruit new distributors rather than selling
product. In order for distributors to participate in USANA’s
compensation plan or contests, you must personally purchase over $100
worth of product every four weeks. Unfortunately, even though USANA
pays out almost half of their net sales as distributor incentives,
the vast majority of
distributors never earn a profit
and only a few at the top of the distributor network hierarchy make
enough to recognize a profit. The
result is a pyramid scheme.
The more distributors in one's downline, the more commission one is
likely to receive. Because distributors are required to personally
purchase product, commissions are almost guaranteed to those who
joined earlier and are higher up the chain.
Now that you have a basic understanding of the distributor incentives as a percentage of USANA's net sales, we must now look at USANA's average cost to manufacture the product. This is known as the "cost of sales" and is reported in USANA's 2014 10-K SEC filings as 17.81%, which consists of expenses related to raw materials, labor, quality assurance, and overhead costs directly associated with the production and distribution of the product. So a $108 HealthPak is estimated to cost USANA $19.24 to produce. In other words, USANA sells the HealthPak to their distributors at 5.6 times their cost to manufacture and produce that HealthPak.
In contrast, dietary supplement manufacturer NBTY is not a multilevel marketing company. According to their 2014 10-K SEC filings, NBTY’s cost of sales represents 54.29% of the net sales. As a result, NBTY sells product to their distributors at only 1.8 times their cost to manufacture. One glaring difference is that they do not have a very large distributor incentive like USANA does. If the same HealthPak product was manufactured at NBTY at the same cost of $19.24 as it did with USANA, then NBTY would be able to sell it to their distributors for an estimated $35.43 instead of USANA's $108 price tag.
By removing the focus of recruiting an endless chain of distributors (in what I believe is a massive pyramid scheme) by greatly reducing or eliminating altogether the distributor incentives, product sold to USANA distributors could be much more affordable and allow distributors to retail the product for a substantial profit margin. In fact, if USANA distributors purchased the HealthPak for $35.43, they could resell it for a 100% profit margin and it would still be much cheaper than the $108 USANA distributors currently pay.
This document shows all USANA products sold in the United States, the price USANA distributors pay for each product from USANA (MultiLevel Marketing company), and the estimated price distributors could pay if the same product was instead manufactured and distributed by NBTY (non-MultiLevel Marketing company).
Now that you have a basic understanding of the distributor incentives as a percentage of USANA's net sales, we must now look at USANA's average cost to manufacture the product. This is known as the "cost of sales" and is reported in USANA's 2014 10-K SEC filings as 17.81%, which consists of expenses related to raw materials, labor, quality assurance, and overhead costs directly associated with the production and distribution of the product. So a $108 HealthPak is estimated to cost USANA $19.24 to produce. In other words, USANA sells the HealthPak to their distributors at 5.6 times their cost to manufacture and produce that HealthPak.
In contrast, dietary supplement manufacturer NBTY is not a multilevel marketing company. According to their 2014 10-K SEC filings, NBTY’s cost of sales represents 54.29% of the net sales. As a result, NBTY sells product to their distributors at only 1.8 times their cost to manufacture. One glaring difference is that they do not have a very large distributor incentive like USANA does. If the same HealthPak product was manufactured at NBTY at the same cost of $19.24 as it did with USANA, then NBTY would be able to sell it to their distributors for an estimated $35.43 instead of USANA's $108 price tag.
By removing the focus of recruiting an endless chain of distributors (in what I believe is a massive pyramid scheme) by greatly reducing or eliminating altogether the distributor incentives, product sold to USANA distributors could be much more affordable and allow distributors to retail the product for a substantial profit margin. In fact, if USANA distributors purchased the HealthPak for $35.43, they could resell it for a 100% profit margin and it would still be much cheaper than the $108 USANA distributors currently pay.
This document shows all USANA products sold in the United States, the price USANA distributors pay for each product from USANA (MultiLevel Marketing company), and the estimated price distributors could pay if the same product was instead manufactured and distributed by NBTY (non-MultiLevel Marketing company).
