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)
$55.00 autoship wholesale
REV3 Energy (24 cans)
$93.75 autoship wholesale
REV3 Energy Surge Pack (14 stick packs)
$29.95 autoship wholesale
REV3 Energy Surge Pack (28 stick packs)
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.