NBTY EQUIVALENT PRICE LIST

Transcription

1 ESSENTIALS ASSOCIATE LIST EQUIVALENT LIST See what products could cost if manufactured by a non-multilevel Marketing company. By using s cost to manufacture each product and applying that same figure to s costs, you can see how much more charges it s distributors for their products, which is primarily due to 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 on last page. represents the discounted price gives their distributors. (10% below preferred pricing) represents the equivalent price if manufactured the same product instead K SEC Filing Average Cost of Sales: 17.81% K SEC Filing Average Cost of Sales: 54.29% Approximated = ( * 17.81%) / 54.29% 107 MyHealthPak Custom Custom * 0.328% 100 HealthPak $ $ Essentials $44.06 $ Essentials Kosher $44.06 $ Essentials Green $44.06 $ Chelated Mineral $14.81 $ Mega Antioxidant $34.16 $ Mega Antioxidant without Vitamin K $34.16 $11.21 WatchDog 2015 WATCHDOG.BLOGSPOT.COM Page 1 of 7

2 DIGESTION/DETOX OPTIMIZERS ASSOCIATE LIST EQUIVALENT LIST 109 Vitamin D $17.96 $ Proflavanol C100 $35.96 $ Active Calcium $17.06 $ Active Calcium Chewable $22.46 $ BiOmega $20.21 $ CoQuinone 30 $35.06 $ Ginkgo-PS $29.65 $ Palmetto Plus $22.01 $ PhytoEstrin $18.86 $ Procosa $27.90 $ Visionex $28.31 $ Pure Rest $14.36 $ Booster C 600 $28.31 $ Probiotic $23.36 $ Digestive Enzyme $26.96 $ Hepasil DTX $30.56 $ Fibergy Plus $26.96 $8.84 WatchDog 2015 WATCHDOG.BLOGSPOT.COM Page 2 of 7

3 ACCESSORIES RESET SNACKS & BARS NUTRIMEAL MOTHER/CHILD ASSOCIATE LIST EQUIVALENT LIST 104 Body Rox $20.25 $ Usanimals $12.56 $ BiOmega Jr. $15.26 $ BabyCare Prenatal Essentials $44.06 $ Children s Complete Duo $22.46 $ Nutrimeal Free, Protein Drink Mix $26.96 $ Nutrimeal Chocolate Whey, Protein Drink Mix $26.96 $ Nutrimeal Dutch Chocolate, Protein Drink Mix $26.96 $ Nutrimeal French Vanilla, Protein Drink Mix $26.96 $ Nutrimeal Wild Strawberry, Protein Drink Mix $26.96 $ Peanutty Bliss, Protein Snack $27.86 $ Choco Chip, Protein Snack $27.86 $ Fudge Delite, Protein Snack $27.86 $ Berry Nutty Nutrition Bar $35.96 $ Day RESET Kit $99.86 $ RESET Kit 4-Pack $ $ BlenderBottle $5.36 $ Pedometer $13.46 $ Pedometer / BlenderBottle Duo $16.16 $5.30 WatchDog 2015 WATCHDOG.BLOGSPOT.COM Page 3 of 7

4 SKIN CARE REV3 ASSOCIATE LIST EQUIVALENT LIST 138 Rev3 Energy $28.76 $ Rev3 Energy Surge Pack $28.76 $ Rev3 Energy Surge Pack $47.70 $ Gentle Daily Cleanser $15.26 $ Hydrating Toner $12.56 $ Daytime Protective Emulsion w/ SPF 15 $31.73 $ Night Renewal Crème $30.15 $ Serum Intensive $35.33 $ Perfecting Essence $41.63 $ Eye Nourisher $20.66 $ Rice Bran Polisher $13.46 $ Nutritious Crème Masque $15.26 $5.00 WatchDog 2015 WATCHDOG.BLOGSPOT.COM Page 4 of 7

5 COMBINATION PACKS BODY & HAIR CARE ASSOCIATE LIST EQUIVALENT LIST 311 Energizing Shower Gel $14.36 $ Shower Gel Pump $0.23 $ Revitalizing Shampoo $14.36 $ Nourishing Conditioner $15.08 $ Firming Body Nourisher $19.94 $ Intensive Hand Therapy $12.15 $ Natural Loofah Glove $4.05 $ Body Polishing Glove $3.56 $ Natural Whitening Toothpaste $7.47 $ Mirror $4.95 $ Deluxe Pack w/ Perfecting Essence $ $ Deluxe Pack w/ Serum Intensive $ $ Deluxe Pack 4-Pack w/ Perfecting Essence $ $ Deluxe Pack 4-Pack w/ Serum Intensive $ $ Sensé Basic Pack $72.90 $ Sensé Basic 4-Pack $ $ Sensé Hair & Body Pack $67.95 $ Sensé Shower Pack $37.80 $12.40 WatchDog 2015 WATCHDOG.BLOGSPOT.COM Page 5 of 7

6 ASSOCIATE LIST EQUIVALENT LIST By calculating 's estimated cost to manufacture each of their products, we can have manufacture the same exact product at 's estimated cost and determine what a distributor could pay if purchased from rather than. This reveals how distributors are paying way too much for product so can fund their pyramid scheme (see associate incentive expense below). Example: HealthPak sold to their distributors for $108 It costs approximately $19.24 to manufacture the HealthPak ($108 * 17.81%) Now have manufacture the same exact product and have it cost them $19.24 to manufacture could sell the HealthPak to their distributors for only an estimated $35.43 ($19.24 / 54.29%) Why should distributors be overcharged and left holding the bag? 10-K 2014 SEC Filings Dollar value in thousands Value % of Net Sales Net Sales $790, % Cost of Sales $140, % Associate Incentives (Commissions & Bonuses) $349, % Selling, General and Administrative (SG&A) $184, % Advertising (part of SG&A) $4, % Research and Development (part of SG&A) $5, % Earnings from Operation $116, % 10-K 2014 SEC Filings Dollar value in thousands Value % of Net Sales Net Sales $3,205, % Cost of Sales $1,740, % Advertising, Promotion and Catalog $202, % Selling, General and Administrative (SG&A) $952, % Goodwill & Intangible Asset Impairment Charges $207, % Earnings from Operation $102, % WatchDog 2015 WATCHDOG.BLOGSPOT.COM Page 6 of 7

7 ASSOCIATE LIST EQUIVALENT LIST As a distributor, your job is to retail product to customers and the reward is a decent profit margin on the sale. However, has chosen to make commissions and bonuses (distributor incentives) the primary reward. 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 's compensation plan, pays out 43.5% of their sales as distributor incentives, which is reported in K SEC filings. To put in perspective, the HealthPak sells to 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 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 s compensation plan or contests, you must personally purchase over $100 worth of product every four weeks. Unfortunately, even though 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 's net sales, we must now look at 's average cost to manufacture the product. This is known as the "cost of sales" and is reported in 's 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 $19.24 to produce. In other words, sells the HealthPak to their distributors at 5.6 times their cost to manufacture and produce that HealthPak. In contrast, dietary supplement manufacturer is not a multilevel marketing company. According to their K SEC filings, s cost of sales represents 54.29% of the net sales. As a result, 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 does. If the same HealthPak product was manufactured at at the same cost of $19.24 as it did with, then would be able to sell it to their distributors for an estimated $35.43 instead of '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 distributors could be much more affordable and allow distributors to retail the product for a substantial profit margin. In fact, if 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 distributors currently pay. This document shows all products sold in the United States, the price distributors pay for each product from (MultiLevel Marketing company), and the estimated price distributors could pay if the same product was instead manufactured and distributed by (non-multilevel Marketing company). WatchDog 2015 WATCHDOG.BLOGSPOT.COM Page 7 of 7