Some background on the price increase. Where did it all begin?
About 17 months ago, ForMor lowered the price of Cardio Cocktail from $69.95, to $39.95 at
the request of the leaders in the Distributor force. Now, some leaders didn’t really agree, but
when the vote was made, it was pretty unanimous.
So, the company dropped the price and sales plummeted.
Paychecks, which are based on BV, also plummeted. In hindsight, I’d have to say that everyone came to this decision out of fear….because one little company had a lower price, we all made a very poor decision. It was a bad decision for distributors and company alike.
1. We lowered the perceived value of an incredible product, with a staggering amount of science behind it…to the same level as the jungle juice companies.
They are some of the biggest companies in the industry with nice-tasting juice with absolutely no science to warrant selling them for one penny more than orange juice costs.
Think about it:
(a) Cardio Cocktail has Nobel Prize winning science behind it’s main ingredient, l-arginine.
(b) There have been tens of thousands of studies and research papers done showing the positive benefits of l-arginine on the Cardio Vascular System.
(c) Nobel Laureate, Dr. Louis Ignarro wrote a book entitled “NO More Heart Disease” touting the incredible benefits of l-arginine.
(d) Dr. John Cooke, head of the Stanford Medical Center Cardio Vascular Unit wrote a book called “The Cardio Vascular CURE” promoting the power of l-arginine!
Cardio Cocktail is too valuable a product to have ever sold for $39.95 for a one-month
supply! Shame on us!
2. At the same time, we cut ForMor’s margin to a level that was below the amount
necessary to sustain long-term profitability. ForMor was betting sales would increase
dramatically because of the lower $39.95 price. That did not happen.
3. The third negative result of dropping the BV from 50 to 25BV was that Distributors
took a drastic cut in pay. Top Distributors had also believed the lower price would
stimulate much greater unit sales of Cardio Cocktail, offsetting the drop in BV. Again,
that did not happen.
When you cut commissions in half, good salespeople lose their incentive to sell. They
have to work twice as hard (sell twice as many bottles & sponsor twice as many people)
to make the exact same amount of money, that’s not freedom! Remember, ForMor did
not come up with the idea of cutting the price. That idea was initiated by distributors
who were afraid of losing more business to a lower price competitor.
In Cardio Cocktail, we have what may be the greatest product in all of network marketing history and 18 months ago we all decided cut the price to $39.95 a bottle.
That’s the same price range as all those “jungle fruit juices” that have absolutely no science whatsoever behind them! Cutting the price of Cardio Cocktail was a mistake.
In hindsight, all of our productive leaders agree.
So, where do we go from here?
There is one thing for sure…..this is a time for everyone to join together and pull in the same
direction! It’s a time for good leadership; not wimpyness or waffling; not griping or groaning.
It’s a time for being positive and pulling together in the same direction.
Change is a PAIN IN THE NECK....always. But, consider the alternative. ForMor and Cardio
Cocktail and our Distributors must survive and prosper!
They say the definition of insanity is: “To keep doing the same thing, the same way, yet
expecting a different result." Watching ForMor and its Distributors make less money each
month is not an option we can continue with.
Now, let me give you an example of insanity: “Leaving the price of Cardio Cocktail at $39.95.” That would be a decision to willingly go out of business. Totally insane!
Again, selling Cardio Cocktail at $39.95 created two problems:
1. Company profit too small to survive long-term
2. Distributor pay was cut in half by dropping the BV
(which de-motivated the sales force)
We will not continue like this!
Let me give you an exaggerated example of what is happening, so people will be able to see
the picture more clearly.
How would you like to buy a brand new $50,000 Mercedes Benz for only $5,000? Well, let’s say Mercedes actually decided to see how fast they could sell cars at $5,000!!!
Question: When Mercedes figures out that selling $50,000 cars for only $5,000 does not provide
enough money to stay in business…folks, would you get angry & think they were crazy for
raising the price back to the proper level? Of course not!
Question: So, which was the worst decision?
A. Lowering the price and jeopardizing their profitability? Or,
B. Raising the price to re-capture profitability & stay in business?
Certainly, lowering the price in the first place was the wrong decision. It’s especially easy to
come to that conclusion when we are talking about Mercedes….and not about ForMor!
The truth is, ForMor is facing the exact same situation.
Lowering the price was the wrong thing to do, and raising the price back up is the wisest course of action. No one is denying that raising the price of Cardio Cocktail may be a tough pill for some folks to swallow….but there can be absolutely no doubt about it being the wisest thing to do.
For those who don’t want to spend (or cannot afford) $69.95 per bottle…..we have a great
alternative. ARGENIX, the original 5gram/day, liquid l-arginine product, with great new taste,
l-citrulline, antioxidants and fulvic minerals is still available for $39.95/25BV per bottle!
There are those who are worried about our customers and how they will handle the price
increase. I am concerned about that too.
But, please listen to this, if we keep the price of Cardio Cocktail at $39.95, we will soon be out of business. That is not an option we will surrender to!
So, we must look to the future.
The future? Yes….and our future is bright!
This may come as a shock to those with tunnel vision, but over 98% of the population of the U.S.A. does not even know that Cardio Cocktail exists or that (for one crazy period of time) it once sold for $39.95 per bottle! Our unreached market is ENORMOUS!!!
When we tell that 98% that there are $300.00 worth of retail ingredients in Cardio Cocktail, but
they can buy it from ForMor for only $69.95 a bottle, plus shipping….they’re going to think it’s
a really great deal! That is, of course, unless YOU don’t think it’s a great deal. You are the
carrier of the message. Is your “glass half-empty, or is it half-full?” Half-full is great….but
having your glass overflowing is even better!
As we move forward and reach out to new prospects to build our businesses bigger and stronger than before, what will be the biggest objection to Cardio Cocktail ?
The biggest objection to any nutritional product is always PRICE. It doesn’t matter whether the
price is $9.95, $39.95, $69.95 or $99.95…price is always the biggest objection.
It’s important for us to realize though, that $69.95/bottle used to be the price of Cardio Cocktail.
It’s also important to realize that we sold almost 4 times as many bottles per month at $69.95 as
we currently sell at $39.95. So, it’s foolish to say that $69.95 is going to be a big problem!
When we were selling Cardio Cocktail for $65.00 to $69.95, our other big objections were:
(1)Bad Taste, (2) Diarrhea & tummy aches,
(3) Unpopular Sweeteners, (4) Dumpy Bottle and
(5) Plain Jane Labels.
Now, we’ll have the advantage of selling a new Cardio Cocktail that, tastes great, has a new
sweetening system, is in a great shaped bottle with beautiful labels, and if you take it according
to the instructions on the bottle, diarrhea and tummy aches will be things of the past! These are
all great big advantages!
In addition, many people cried out for a plug and play recruiting system. We now have one of
the finest in the industry!
Okay, but what if the $69.95 price is still the objection?
If you’re talking to a prospect and the $69.95 price is still the objection, you simply say, “Let me
show you how to get your product ‘free.’” We call it referral income.
We tell them that by simply referring other people who will use the products, they can pay for part, or all of their personal products!
During the past 18 months, part of our problem with selling that concept was that at $39.95,
people had to refer enough customers to buy 33 bottles @ 25BV to cover their cost of qualifying
($160.00) with 4 bottles of Cardio.
The good news is, that at $69.95, to cover the cost of qualifying with 2 bottles ($139.90), you
only have to find enough customers to purchase 15 bottles! It is much easier to find enough
people to buy 15 bottles, than to buy 33! Obtaining “free” product just got twice as easy!
Okay, but what if the prospect doesn’t want to refer other people?
In that case, we have another great product that still gives 5grams/day of l-arginine and is full of
anti-oxidants. It’s called ARGENIX !
Improved-Taste ARGENIX is also the answer for current customers who wish to cancel their
order of Cardio Cocktail because of the price increase.
Argenix is only $39.95 on Auto-Delivery and it contains:
5g/day L-Arginine………..L-Citruline
Antioxidants…………Fulvic Minerals
and it has a Great New Taste!
So, when trying to sell ARGENIX to a new prospect, how would you
incorporate the Application Fee into your presentation? This is a stumbling
block for many people.
What a great question! First, I need to say that to help our prospects see the value of becoming a
distributor and get them signed up easier, the Application Fee is being reduced to $10.00!
How’s that for good news?
When selling any ForMor product, ALWAYS start with the RETAIL PRICE! Beginning with
the Retail Price allows you to be a HERO when you drop the price and give the prospect a
BREAK by becoming a Distributor to buy at WHOLESALE!
Here’s what you say:
“Mr. Prospect, buying ARGENIX at the $59.95 Retail Price is a real bargain. But if you
become a Distributor and pay a $10.00 Application Fee, then you qualify to buy on autodelivery,
paying only $39.95/bottle for ARGENIX. That’s a savings of $20/bottle….and
the Application Fee is more than saved back when you buy your very 1st bottle!�
Auto-Qualifying Distributors at Highest Past Rank Level:
In addition to earning twice as much commission on every customer and distributor who
continues to buy Cardio Cocktail ….
In addition to only needing to sponsor half as many people to achieve any financial goal that you
set…..
ForMor is going to auto-Qualify every Distributor who meets their personal Qualification of
100BV, during the months of January, February and March of 2010.
Distributors will be auto-Qualified at the highest Rank Level they EVER achieved in the New
Millennium Comp Plan.
That is, if you’re now a Ruby, and you were once a Diamond, you will auto-Qualified and paid
at the Diamond Rank Level, as long as you meet your 100BV personal requirement during Jan.,
Feb., and March.
Can see how this is going to be a really positive transition for those Distributors who get on
the ball and start promoting this change?
The Importance of Strong Leadership in Tough Times:
Truly, how well these changes go over is all about leadership. If you provide strong leadership
to your team, the changes will result in a big increase in pay. If you provide weak leadership,
you may be in trouble!
It is said that there are 3 groups of people: (1) Leaders, (2) Followers and (3) Gripers.
Leaders Lead….that's what God made them to do.
They are a SMALL percentage of the population. Leaders see the vision and point the way for others. Leaders have a depth of courage that is not found in the other two groups.
Followers Follow…that's what God made them to do.
They are a HUGE percentage of the population. Followers are the wonderful folks who make up the vast majority, and are the backbone of every organization.
They follow Leaders whose vision is big enough. Followers look for leaders who clearly see the vision and can point the way for them. Followers draw their motivation and courage from their relationships with strong leaders and other motivated team-players.
Gripers Gripe…that's what they do….and God didn’t have nothin’ to do with it! To Gripers,
there’s only one kind of news…..and it’s all bad!
Fortunately, Gripers are only a SMALL percentage of the population….but they sure do make a lot of noise!!!!
Gripers see the vision too, but it’s not attainable to them because they exaggerating the significance of EVERY obstacle they see. What they succeed at, for the most part, is distracting, confusing and depressing people who would otherwise be good Followers. It is the Griper’s ability to sway Followers that often makes us confuse them with Leaders.
So, to build an effective, growing organization, this should be our “bottom line” when it
comes to dealing with Leaders, Followers and Gripers:
- If you’re qualified to lead…great!
- If you want to follow…terrific!
- But, if all you want to do is GRIPE….shut up & get out of the way!
Gripers are the destroyers, they are the cancers, of every organization. Identify them;
correct them; or cut them out of the organization if they will not stop spreading negativity.
Let’s face it: Change can be traumatic.
Even good Leaders and good Followers may react negatively when changes come....at first. It's to be expected. But as leaders see the logic in the changes, as they look at the “bigger picture,” they rise up, point the way and lead people toward the greater good.
ForMor stands for many good things and it must continue to survive! That means ForMor must change. Albert Einstein said: "Great spirits have always encountered violent opposition from mediocre minds.”
It is so important that we, as leaders, come to grips with this fundamental truth. Leadership is never easy, because when you strive to lead people to higher ground, you represent the courage that other people do not have. Those people who are controlled by fear, always scream the loudest when confronted with change or any kind of challenge.
As Leaders, we must have the courage that others do not have...it's the most basic part of our job
description.
We must help others see things from the proper perspective and “help them put the
shoe on the right foot.” The ability to do these things makes us worthy to lead.
By adjusting prices, ForMor made a good, but very tough decision that:
-will allow it to be profitable
-will allow it to continue providing life-changing products, and
-will re-establish a worthy value on the greatest nutritional product available today
-will allow distributors to earn the kind of money that our efforts deserve!
All of this will happen…..as long as we give this decision our support.
In Closing:
As the famous World War II hero, General George S. Patton once said:
"You must be single-minded. Make a decision, and drive for that one thing on
which you have decided."
On January 1st, the prices will be raised so ForMor and its Distributors can not only survive, but prosper.
That’s what [LIVE.FREE] is all about! I will not be "wishy-washy" and have my spirit brought down by those who have a gripe, but no vision. I can still love them. They can still be my friends. They can join me if they wish, or leave if they choose. But they cannot steal my vision for success."
Well there You Have It General Dan Hobbs from the Formor International Mafai has Spoken NOW you Followers DO as GOD intended and Sit Down and Shut up and FOLLOW..