tag:blogger.com,1999:blog-4815867514277794362.post8973236113170088869..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: Good and bad MLMs: Pampered Chef, Herbalife and NuskinJohn Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger26125tag:blogger.com,1999:blog-4815867514277794362.post-2498635550025431062014-03-19T09:33:22.063+11:002014-03-19T09:33:22.063+11:00Your description of a Pampered Chef party is so un...Your description of a Pampered Chef party is so unlike the actual event.....they are not "dinner parties" they are in home sales demonstrations. The food is merely a vehicle to showcase, and hopefully sell, the products. <br /><br />A new consultant doesn't have to spend thousands on "frying pans" that she hopes she can sell! The consultant starter kit costs either $99 or $159 depending on the amount of products the new consultant wants for her kit. Consultants do not stock items for resale. When products are ordered from a show, they are sent from the distribution center in Illinois. <br /><br />As far as being overpriced, I suggest you take a Pampered Chef catalog to Williams and Sonoma or some other quality kitchen store and compare the prices and the quality. I think you will be pleasantly surprised. If you are going to compare Pampered Chef products with Walmart products, you will of course see that the Pampered Chef products cost more.....you need to compare quality products to quality products.<br /><br />As far as some consultants not earning more than a few thousand dollars a year but not caring because they like to cook and they like to have parties, that is really demeaning.. There are many consultants in The Pampered Chef that earn thousands per month (myself included) who are with this company because it offers them the opportunity to have their own business. There are many consultants who don't even like to cook (imagine that!) but they know that The Pampered Chef offers quality products, great customer service and a well known an respected brand. <br /><br />Please get your facts straight before you write any more articles about a wonderful company that has given thousands of woman and men (yes, men!) the opportunity to have a successful business.<br /><br /><br />aclowhttps://www.blogger.com/profile/08702758323955717118noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-29741100148385535702013-11-05T23:19:23.355+11:002013-11-05T23:19:23.355+11:00By enhanced molecular structure Nu Skin means some...By enhanced molecular structure Nu Skin means something, that is so important, that it makes a great difference between couple-a'-pennies poison and the highest utilizable bioproduct. It is NOT the same for me. So, my friends, either you understand and experience what they say or you simply deny some viable information from yourself. WHEN you understand, that Nu Skin and Pharmanex's reliablity and high quality(you can measure by high-tech molecular examinations) makes it the cheapest of all. SO the question is: do you want to make an expensive urine, or you want that stuff BUILT IN. Now it is not up to your own fantasy, wether that happens. It IS MEASURABLE BY ANY MEANS(you select method)!!!!! You need it? I do!Adamnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-4556620663436625962013-10-16T07:19:39.736+11:002013-10-16T07:19:39.736+11:00If you have no idea what "nano" means, t...If you have no idea what "nano" means, then you have little right to comment. Have you checked the NuSkin stock lately? Did you mention that the most expensive products come with money-back guarantees...or that they can do that because when used as directed, these products actually WORK? OR that seven of the Pharmanex supplements are listed in the Physician's Desk Reference...or that our Chief Scientific Officer comes from a well-respected pharmaceutical career where many companies, including Wyeth Labs, wanted to buy Pharmanex but NuSkin was successful in its bid? This company has been around for close to 30 years, and also owns LifeGen Technologies, which helped map the human genome in 2003. They there- fore have 30 years of the top anti-aging and weight-loss research based on gene therapy - something no one else does. It's been reviewed on The Discovery Channel as well as many peer-reviewed publications. A minimum of 75 PhDs are on staff with NuSkin and Pharmanex. There are many ways this company stands above other MLMs - your ignorance just doesn't show that. It's got a 5A-1 rating by D&B and has been listed in the Top 5% of Forbes' Most Trusted Companies for years, and has also won several Stevie Awards for innovation and its philanthropic branch, a Force for Good. There's a reason its stock has gone from 32 to 100 in a year. People - be careful taking this man's uneducated opinion!jag512https://www.blogger.com/profile/15516644774385896779noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-91381513456685345852013-08-07T19:12:33.977+10:002013-08-07T19:12:33.977+10:00Can you make waffles in the oven? Don't you n...Can you make waffles in the oven? Don't you need an electric waffle maker?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-8442926405549940642013-08-01T13:52:05.956+10:002013-08-01T13:52:05.956+10:00I'm stuck on the fact that a girl got shot bec...I'm stuck on the fact that a girl got shot because her friend kept ammunition in the oven. <br />Great explanation using the pampered chef party. Mark Dreisonhttp://gold401k.com/gold-ira-investment/noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-13574454855750061202013-07-30T03:18:46.973+10:002013-07-30T03:18:46.973+10:00Ackman should have known that shorting Herbalife w...Ackman should have known that shorting Herbalife was a losing proposition:<br /><br />Rearrange the letters in HERBALIFE and you come up with BIL HE FEAR<br /><br />That's all I got. Do I get the job?<br />Jon Lnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-6496536077782821132013-07-29T18:57:29.946+10:002013-07-29T18:57:29.946+10:00For what it's worth, those Herbalife t-shirts ...For what it's worth, those Herbalife t-shirts are showing up all over the place in fashionable North London. I suspect that they've broken into the "large component" (in the sense of Duncan Watts's book on network theory) of the British personal training industry and begun to spread like wildfire, or possibly bindweed since we don't really have wildfires over here.Dan Daviesnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-34499732592445147042013-07-29T15:29:01.108+10:002013-07-29T15:29:01.108+10:00"Howard Schultz said...
There is no way y..."Howard Schultz said...<br /> There is no way you can sell a commodity item for an exorbitant price just by providing that commodity in a novel environment."<br /><br />Really? How about visiting any trendy bar in the world and buying a cocktail. Commodity item - alcohol. Exorbitant price - at least a 200% and up to 1000% markup! Jon L.noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-73376064548337197252013-07-29T14:08:18.801+10:002013-07-29T14:08:18.801+10:00Anonymous of 12.20pm obviously does not want a job...Anonymous of 12.20pm obviously does not want a job at Bronte Capital!John Hemptonhttps://www.blogger.com/profile/03766274392122783128noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-50506878369084148982013-07-29T12:20:56.222+10:002013-07-29T12:20:56.222+10:00You could build a derivative case around Amway Aus...You could build a derivative case around Amway Australia.<br /><br />"Many people in Australia don't clean or can't clean or never learned proper hygiene. Some even use vegemite as a hair gel. Many of these people miss the family or social aspects of having relationships..."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-48680218727354947062013-07-28T23:08:16.009+10:002013-07-28T23:08:16.009+10:00My name is Hil Davis, I was an equity research ana...My name is Hil Davis, I was an equity research analyst at Citadel Investment Group in Chicago, IL, USA. I left to start a MLM company b/c there is a significant oppty to professionalize such a powerful distribution model, just like franchising in the 1980's. <br />MLM has earned and deserves a bad rap, but if done right, can be very powerful. (1) Cut out the costs for the reps to buy in and stay in, (2) compress the supply chain like AMZN and WMT and drive a compelling customer value prop b/c you eliminate the retail mark-up, (3) focus on quality over quantity and look at your reps like franchisees and not self consuming distributors. Our avg stylist generates $20,000 USD a year in revs and pays $49 to enter and $50 a year for email, training, support, etc.<br />John - if you would like to discuss further let me know.<br />Hil Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-27499410115466873872013-07-28T17:39:25.752+10:002013-07-28T17:39:25.752+10:00I agree with almost all of your points but I do wa...I agree with almost all of your points but I do want to pointing out one problem with your hypothesis, that Herbalife 'S value is in is its diet clubs. if my memory is correc, diet clubs we're not started until less than 10 years ago, unofficially by an affiliate in Mexico. Even now the clubs are not allowed to use the official logo. <br /><br />So does the company actually provide any additional value that you claim is the primary worth of the brand? Do they even provide training to form such diet clubs? <br /><br />If not, then what is the real value of Herbalife? And do they really deserve the credit that you are giving them?K Changhttp://amlmskeptic.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-45899921775593702662013-07-28T12:41:28.791+10:002013-07-28T12:41:28.791+10:00James M., Howard Schultz was clearly joking.
His ...James M., Howard Schultz was clearly joking.<br /><br />His moniker is the same name as the CEO of Starbucks.<br /><br />Do you think Starbucks makes money selling commodities at inflated prices in novel environments...<br /><br /><br />JJohn Hemptonhttps://www.blogger.com/profile/03766274392122783128noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-33385110069403253922013-07-28T10:57:24.371+10:002013-07-28T10:57:24.371+10:00This comment has been removed by the author.Jimhttps://www.blogger.com/profile/03616408575957757774noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-43701672920562735032013-07-27T12:47:22.020+10:002013-07-27T12:47:22.020+10:00Hey - This post is a little long… but has a useful...Hey - This post is a little long… but has a useful lesson in it. My takeaway? I can store my ammo in the oven!<br />brandsingerhttps://www.blogger.com/profile/11684844742391749078noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-37042152482804484552013-07-27T09:31:52.894+10:002013-07-27T09:31:52.894+10:00Anonymous at 8.06 AM...
I am well aware that most...Anonymous at 8.06 AM...<br /><br />I am well aware that most McDonalds franchisees make money and most HLF distributors do not have good businesses and many wind up slightly out of pocket.<br /><br />A few who start and fail at the business of running shops [nutrition clubs] wind up massively out of pocket simply because they run a club and get no customers...<br /><br />This is a design feature of MLMs - no control over the number of distributors eventually erodes almost any opportunity.<br /><br />It does not erode the fitness instructor because fitness instructor has almost no incremental cost and has some incremental sales.<br /><br />---<br /><br />I am not recommending you become an HLF distributor. Nor Avon. Nor Pampered Chef.<br /><br />But if you chose to become one work out what edge - if any - you have in selling to a broad community. If no edge do not do it.<br /><br />If some edge the product will be picked by the edge - I think.<br /><br />Oh, and it is pretty hard to explain why anyone has an edge selling overpriced washing powder.<br /><br />---<br /><br />JJohn Hemptonhttps://www.blogger.com/profile/03766274392122783128noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-46870683519548055702013-07-27T08:06:55.611+10:002013-07-27T08:06:55.611+10:00This whole HLF series is missing the point.
Any f...This whole HLF series is missing the point.<br /><br />Any franchise model can fit a similar description to the Pampered Chef / Herbalife comparisons you try to make. McDonalds sells real estate space, IP rights, meat, potatoes, and cups to its thousands of franshisees at a profit. In turn, those franchisees operate their restaurants, and sell hamburgers and fries to millions of customers daily, also at a profit. In the end, there is a happy customer eating his burger, who bought it for a reasonable value. Everyone along the chain here is happy.<br /><br />With HLF, and other bad MLMs, VERY FEW of the franchisees are making money. In fact, the majority are not making money. This HLF trade has obviously worked out great for your fund, but the thesis should be: Ackman is getting squeezed by ICahn. It is shocking to me how someone who focuses so much of their time on the short side, and specifically fraud and bad characters, can be so blind on this company.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-11075197175762514302013-07-27T05:52:52.155+10:002013-07-27T05:52:52.155+10:00John: off topic but I find use of social media, sp...John: off topic but I find use of social media, specifically FB, as the new channel to market MLMs fascinating. I have three "friends" that are hawking weight loss MLMs, two that appear to have enjoyed a surprising amount of success. THe marketing of success, wealth, travel etc of the distributors while pushing of miracle weight loss products is equal parts entertaining and contemptible. --dmAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-89465565321099000442013-07-27T05:52:14.772+10:002013-07-27T05:52:14.772+10:00There is no way you can sell a commodity item for ...There is no way you can sell a commodity item for an exorbitant price just by providing that commodity in a novel environment.Howard Schultznoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-34026632922712905222013-07-27T03:55:33.201+10:002013-07-27T03:55:33.201+10:00John,
Very good piece, rare is there a balanced d...John,<br /><br />Very good piece, rare is there a balanced discussion of such a polarizing topic.<br /><br />I know you have discussed visalus a bit in the past. The company has obviously struggled but it is in a lot of ways very similar to herbalife (arguably less of a burden on distributors taking capital risk).<br /><br />Do you have any view?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-24572010897295933662013-07-27T01:51:59.095+10:002013-07-27T01:51:59.095+10:00It would be interesting for you to look into Herba...It would be interesting for you to look into Herbal Life and Nu Skin as far as % of people who actually make money!! Both are very low, and misleading to people that are honestly looking for supplemental or replacement income. Now Nu Skin distributors are racking credit cards and taking out loans on thier homes in order to "stock up" on a limited time offer coming out. VERY expensive, and I for one fear for those who get tangled up in it. Other NS distributors have lost thousands, even tens of thousands getting wrapped up in the pressure to buy all the LTO's or else not succeed... Shameful and scarry!!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-66963767171548074802013-07-27T01:42:53.817+10:002013-07-27T01:42:53.817+10:00I have never read such a contradictory and confuse...I have never read such a contradictory and confused blog post. Pampered Chef is praised for selling saucepans at three times their value whilst Nu Skin is criticised for correctly displaying statutory notices that its products (as are most nutritional products) not FDA approved. As for the science behind LifePak just do a little research! No Nu Skin Distributor I have met has ever made magical claims for this product - it is just a very high quality nutritional supplement with a guarantee. The reference to China is completely discredited - again if only you did a little more research. Nu Skin is highly respected in China and has just been awarded a new series of licenses by the Chinese government. Of the three companies you mention all are respected and Nu Skin is the most ethical. Start throwing mud where it will serve more purpose!John Plucknoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-57916767430534399402013-07-26T21:33:03.928+10:002013-07-26T21:33:03.928+10:00Only 4 more days to go till Herbalife's Conf C...Only 4 more days to go till Herbalife's Conf Call.<br /><br />So Herbalife is emulating Pampered Chef "community value-added experience" and distancing itself from NuSkin.<br /><br />So in your opinion, overall MLMs are better than conventional retail at delivering this value-added community experience?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-8545839249823650082013-07-26T21:05:41.129+10:002013-07-26T21:05:41.129+10:00Great piece, JH. I would just have one small disa...Great piece, JH. I would just have one small disagreement with you when you say Warren Buffet has a well-deserved reputation for integrity--he's a scam artist and a hypocrite. But What do I Know?noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-22495485415248695002013-07-26T19:14:23.746+10:002013-07-26T19:14:23.746+10:00John:
I would be interested if you came across Or...John: <br />I would be interested if you came across Oriflame (ORI SS), a Swedish MLM for cosmetics (essentially European Avon) and where you would position it between "Gold standard" and crooks.<br /><br />Best,<br />Marko Markonoreply@blogger.com