Back in April I told you that Usana Health Sciences (NASDAQ:USNA) would be rolling out a new “energy drink” at their annual convention:
The new product is an energy drink. Apparently, studies by Usana show that you could get a bigger kick from a cup of coffee, but they are counting on the cult mentality to sell the product. Usana-heads will believe management… If they say it gives you energy, then by golly, it gives you energy!
The details are set to be released to the sales force at the convention next week, but here they are…
REV3 Energy (12 cans)
$66.00 retail
$61.11 wholesale
$55.00 autoship wholesaleREV3 Energy (24 cans)
$112.50 retail
$104.17 wholesale
$93.75 autoship wholesaleREV3 Energy Surge Pack (14 stick packs)
$35.94 retail
$33.28 wholesale
$29.95 autoship wholesaleREV3 Energy Surge Pack (28 stick packs)
$63.54 retail
$58.33 wholesale
$52.95
No, your eyes aren’t deceiving you on the prices. Yes, one can of the junk is going to retail for $5.00 on average. That’s if anyone can actually sell it. And with the best case scenario wholesale price (autoship), and no discount to the retail buyer (as if there are many), the “distributor” can make about $0.85 a can.
What consumer in their right mind is going to buy this when you can get a can of Red Bull for around $2 or a can of Monster Energy Drink for $2? Somehow I don’t think some secret potion that will no doubt be advertised as added to the Usana product is enough to make consumers want to pay 2.5 times as much.
This just goes back to the premise that Usana and MLMs like it aren’t really interested in a viable retail product. They’re more interested in recruiting new marks who will (foolishly) get themselves on autoship of this junk.
21 Aug 08 at 10:49 pm
Tracy,
You must be making those prices up. USANA would never sell their distributors overpriced product. And I’m really surprised USANA would get involved with the “Energy Drink” fad. For a “Health and Nutrition” company that promotes “Health”, it doesn’t make sense for them to start selling something that contradicts their premise of health.
Maybe USANA plans to compete with Starbuck’s $5 coffee. Or perhaps they never intended to “retail” any of their products and instead create a product line for the sole purpose to use it as tokens for their distributors to participate in their grand pyramid scheme.
As I have repeated several times, if USANA did away with their mandatory distributor product purchases to be eligible for commissions, then the company’s net revenues would drop over 80% in a single quarter.
25 Aug 08 at 12:26 am
Hmmm, somewhat surprising that people from Utah would get involved in selling caffeinated beverages, being that I went to school with many good Mormons. I suppose it all depends on how one interprets the ‘word of wisdom” Whats next - vitamin enhanced chewing tobacco?
30 Aug 08 at 11:53 pm
Lemanite, Are you talking about the same “people from Utah” and “good Mormons” that own Safeway that sells caffeinated beverages and tobacco all day long? Even 24/7 in some places.
31 Aug 08 at 3:14 pm
Safeway is not owned by the Mormons. It was bought by a private equity firm KKR in 86 and taken public again in 1990. I seem to remember hearing that rumor before 1990. I found a statement of benefical ownership, see http://sec.edgar-online.com/2008/04/02/0001193125-08-072906/Section7.asp The largest owner is AXA Financial with 10.9 %, followed by FMR LLC, Brandes Investment Partners, LP, and JPMorgan Chase & Co with 5.2%.
We have to be careful with rumors about who owns a public company. Remember when a letter circulated stating that Proctor and Gamble was owned by the Church of Satan, and the president appeared on the Phil Donahue show? Actually, in March 2007, Procter & Gamble was awarded $19 million in its lawsuit against four Amway distributors for disseminating rumors tying the company to Satanism.
Rumors like this can easily be refuted by plain old common sense, a little research and logic, but people just pass them on. Scammers and MLMs depend on people failing to use their critical thinking skills in a similar manner.
31 Aug 08 at 8:39 pm
I heard about the Rev3 Product from USANA and I am glad and excited
to see they now carry a energy drink. I trust every product that USANA make, because their products, the reset kit and the mutilvitamins have saved my life. I am 44 years old and i am healthier than ever. I cant wait to try the REV3 energy drink. I would pay anything if the quality of product is good.
Rick
01 Sep 08 at 11:47 am
I was also at the convention this week and “usetherod” couldn’t be more off the mark. I am a breast cancer survivor and the USANA products have saved my life. I was skeptical of the energy drink before I tried it. I hate the taste of energy drinks and I hate the crash and burn effect you get from other energy drinks. I tried Rev 3 fully thinking that it would be disgusting and give me the shakes like everything else and it absolutely DID NOT. Before judging a company that you obviously know NOTHING about you should actually TRY the products. If you tried the products, consistently, for one-two months you would have a change of heart, too. That’s the only reason I am involved with USANA now. I tried the products and saw the change in myself. Others saw the change in me. I just want to share a wonderful product with others and improve their health. You can’t stand back and judge something that you know nothing about. It’s irresponsible.
22 Sep 08 at 6:32 am
I’m leaving this comment to call you utterlly retarded and closed minded. Thank you.
29 Sep 08 at 3:07 pm
I am guessing that the author of this diatribe is Tracy Coenen. After looking into her background what I see is nothing more than someone who lives off of sensational stories, reports and other issues that can be bashed through unfounded allegations. It is so easy to say something and then not do or provide anything to support it.
High priced, what has she done to make comparisons to other unhealthy products?
“…cult mentality…”??? I would say that she makes herself out to be the grand guru of cultism. “…Believe what I write and don’t look for any proof, just believe what I say!…”
“…If they say it gives you energy, then by golly, it gives you energy!…” I am so, SOOOOOO, glad that dear Tracy has provided us with all sorts of studies and research on how she came to this conclusion.
“…of the junk…”. Once again, dear Tracy is showing her ignorance.
“…What consumer in their right mind is going to buy this when you can get a can of Red Bull for around $2 or a can of Monster Energy Drink for $2?…”. It is amazing that Tracy wants us to believe that she is using even a bit of her intelligence. She’s comparing products that have nothing to do with each other. I think she’ll next be comparing her Lexus to someone elses Ford and telling us how crapy a Ford is because it’s not a Lexus.
“…some secret potion…”. Once again, dear Tracy shows us her stupidity and her inability to simply read. Each product comes with full disclosure of contents. So I can only surmise that Tracy is intentionally misleading or perhaps just lying here.
“…recruiting new marks who will (foolishly) get themselves on autoship of this junk…” I am laughing at her lack of any kind of intelligence. Using decades old terms (’marks’) shows that our dear Tracy might actually be some very old disgruntled wannabe.
Tracy, in my years of being involved with USANA I have found that those people who tend to bash any company, “out of hand”, are usually people who tried and then failed in an MLM environment. Reading your trash sounds like you are a poster child for those unable to function in an otherwise good, solid and very profitable business.
I am guessing that you have no idea that there are over 300,000 members with USANA. That they provide superior products in 14 countries (now including the Philippines). And that, well, I’m sure you’ve long since stopped reading because you have already made your mind up.
I’m glad that you are no longer an Associate with USANA, your negitivity would just simply drain those of us who know the values and don’t just make unfounded statements.
So sad for you.
29 Sep 08 at 3:55 pm
Gee R, I see you’re so proud of your relationship with USANA that you stand behind your statements with your real name.