Case Lot Purchases
A Case Lot purchase is a purchase of the same product in greater
quantities. Independent Representatives who purchase greater quantities
of the same product will receive higher wholesale discounts off the
Suggested Retail Prices and Preferred Customers who purchase greater
quantities of the same product will receive higher discounts off
the Suggested Retail Prices.
Wholesale discounts available to Independent Representative and
discounts available to Preferred Customers are displayed in the table
below:
e
|
Preferred
Customer Discounts |
Independent
Representative Wholesale Discounts |
Quantity
Purchased
|
Discount
Received
|
Discount
Received |
One-Two
Bottles
|
10%
|
25% |
Three-Five
Bottles
|
15%
|
30% |
Six-Eleven
Bottles
|
20%
|
35% |
Twelve
+ Bottles
|
25%
|
40% |
Note: The Independent Representative, who enrolled the Preferred
Customer, will always be compensated with a commission of 15% based
on the Suggested Retail Price of any order.
Equivalent Markup
When an Independent Representative purchases products at a wholesale
discount and resells the products at the Suggested Retail Prices,
the actual retail markup is always higher than the discount received.
For example, when an Independent Representative purchases $100
of products at a wholesale discount of 25%, the wholesale price
is $75. However, when the Independent Representative resells the
products at the Suggested Retail Price of $100, the markup is 33%
rather than 25%. That is, the $25 of retail commission is a profit
or markup of 33% on the $75 dollar inventory purchase!
Equivalent markups are rounded to the nearest number and are shown
in the table below:
Wholesale
Discount Received Equivalent Markup
|
Wholesale
Discount Received
|
Equivalent
Markup
|
25%
|
33%
|
30%
|
43%
|
35%
|
54%
|
40%
|
67%
|
The
Case Lot purchase system was designed to encourage retail sales
by providing a lucrative financial incentive to Independent Representatives.
The system of escalating discounts was also designed specifically
for health practitioners, personal trainers, dietitians, and nutritionists,
who appreciate the ability to combine a high product line to help
their patients and clients with high retail commissions to cover
their expenses and overhead.