16/09/2016
This is a super long message so ignore it if you have no intention to read :)
Sharing Thoughts .... A wonderful day to all!
Most times after doing a demo for my prospect on the acidic of the water we drink, it usually will open up their understanding and the importance of the water we been drinking. However, after that when they ask me about the price, they suddenly will shut their mind off because they find it very expensive.
I would agree with them as I shut my mind too and was skeptical when I was first introduce this by my friend. It was the most expensive home water machine i have ever heard off. Infact i have heard of this earlier on before my friend even came to approach me because at that time my mum and my father was arguing over buying the kangen machine. My father studied and did research about the product and he was very eager to buy it but my mum stop him from buying it because she knew there were other cheaper machine and infact it was half the cost. To cut the story short I manage to convince them that it was a worth while investment after I have tried drinking the water for 3 week and how my sugar level drop. I am a diabetic. There were a few important reason why kangen water is so effective however I will not share here as you can message me and ask me more or surf into my website and study on it.
What i want to share here today is about the pricing and why the cost is high comparing to the other alkaline or filter machine.
If you are in business you would roughly be able to understand the simple calculation formula of how manufacture, wholesaler and retailer make their profit.
Let discuss about the whole costing process here of ioniser company mark up and how it is share and derive by the retailer to conclude a price tag.
General Manufacturing to Wholesale to Retail Pricing Formula
Understanding how typical retail pricing “keystoning” works (normal 2 / 2.5 / 3 times mark up during each stage of the “product movement”)
Manufacturer – establishes “factory direct” / “bulk wholesale” pricing based on total cost to produce a product...materials, labor, overhead, etc.
Wholesaler – establishes “wholesale” pricing based on their cost to obtain the product. There can sometimes be multiple wholesalers involved in a product getting to market.
Retailer – establishes “retail” pricing based on their cost to obtain the product, as well as costs associated in selling / promoting the product, i.e. advertising, employees, retail location, etc. Retailer typically has the highest amount of expenses associated with selling the product, which is why they typically have the largest / most substantial mark up.
General Manufacturing to Wholesale to Retail Pricing Formula
Manufactures bulk selling price = Manufacturing cost X 2 ($250.00 X 2 = $500.00)
Wholesale distribution selling price = Bulk cost X 2 ($500.00 X 2 = $1000.00)
Retail selling price = Wholesale cost X 2 ($1000.00 X 2 = $2000.00)
Let’s “Reverse Engineer” a typical ionizer retail price: $1800.00
Retail price $1800.00 / 2 = $900.00
Wholesale price $900.00 / 2 = $450.00
Manufactures price $450.00 / 2 = $225.00*
$225.00 --------------> $1800.00 = Mark Up of 8 TIMES!
“Over Priced” Enagic Products Using This Pricing Formula
Let’s “Reverse Engineer” the SD501 retail price: $3980.00 Retail price $3980.00 – 8 Point Payout + Bonuses = $1500.00 Manufactures price $1500.00 / 2 = $750.00*
$750.00 --------------> $3980.00 = Mark Up of 5.3 TIMES!
So who EXACTLY is the OVER PRICED ionizer?????
If we followed the traditional retail pricing model, the Enagic SD501 should have a retail price of approximately...
$6,800.00!!!!!
Yes that would be the actual price... however in order for our company Enagic to market their product they have to have a profitable business plan and because they are manufacturer they were able to come out with a marketing system which they patented their marketing plan call the 8 point payout compensation. With this system the company was able to create an opportunity for people who desire to own their own business and most of all to achieve financial freedom for life.
Many competitor have hammer us that we are a mlm company and therefore our price are over price but if you look back at the formula i shared above we now know the truth of our mark up is use and part of the profit is for a intended purpose for building a career for individual who want to succeed in life which otherwise the direct retailer are only benefiting the profit with the wholesaler and the manufacturer and yet their markup is still higher then ours.
To conclude, I believe it is how you look at it and for me, As for me, I believe the company know the product is effective and bring positive results and because it is effective and have been in the market for 43 years they know, many user of kangen water will want to share it with their family and friends as well. So the company came out with a win win beneficial plan, where the user can enjoy referral bonus and as well the company have a constant flow of business referral for the company to grow as part of their marketing project. However a user can still stay as a user and not participate in the business aspect. So we have two option.
I was a user for 2 years just drinking the water however when i began sharing this with my friend by giving them free water and after witnessing it with their own eyes, they wanted to buy it, i was enjoying the referral bonus and i found it interesting and then only i begin to study more of the 8 point plan and found out that is was truly a sharing earning income that can actually help me gain financial freedom for life. I say it as a "true" sharing business plan because it is really a fair business game and fun. There is no such things as your up line will make all when your downline works harder because this 8 point system rewards on the number of effort one is referring. It practically work basing on the "Law of cause and effect" or we can call it "equal action = reaction" If you put a little in you will get a little out if you put a whole lot in you will get a whole lot out "The law of momentum" So that is why i began to participate into this business and I want to share to as many people as i can with my ability but with no stress, because everything here that i have benefited is basing on natural laws and "kangen" means, going back to the origin.
My appolgy if my message posted here is long. however, thank you for taking the time to read and do comment or feedback me if I need to improve.
With this, I wish you all a wonderful day ahead and be happy always.
Love and Lights
