Herbalife Hoses Distributors With 600% - 700% Markups on S&H Costs!
THE CASE FOR HERBALIFE (NYSE: HLF) BEING LITTLE MORE THAN A SHIPPING AND HANDLING COST MARKUP SCHEME
Fund Manager Matthew Handley takes a closer look at Herbalife's 2013 10k.
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... when thinking about a Corporations Shipping and Handling Revenues, particularly when costs are passed back to parties trying to resell their product, one expects the Shipping and Handling Revenues to reflect some reasonable markup on the actual costs that the Corporation incurs.
This expectation might lead one to consider a 30% markup as reasonable, perhaps at the far extreme for example, even a 60% markup.
A 30% markup sounds fair. Maybe 60% tops.
However, in the case of Herbalife...
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It appears Herbalife has marked up the actual costs it incurred for Shipping and Handling in 2008, 2009 and 2010 by 581%, 575% and 584% respectively.
Furthermore....
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... they may well have marked up the actual costs they incurred for Shipping and Handling in 2011 - 2014 (3 quarters) by, 711%, 704%, 611% and 363% respectively.
Red Flags In Herbalife's Shipping And Handling Revenues
Not an easy read - guaranteed to cure insomnia - but highly informative.
Bend over and touch your toes, Herbalife distributors, Michael Johnson loves ya!
Re: Herbalife Hoses Distributors With 600% - 700% Markups on S&H Costs!
My distributors for power equipment parts charge a flat rate ($8.95, $9.95 for 4 of them) for every order I submit for parts and freight is free over 'X' dollars. Whole goods are charged differently and higher due to their size/weight/trucking. No reason mlm can't get the same deal.
Re: Herbalife Hoses Distributors With 600% - 700% Markups on S&H Costs!
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Originally Posted by
Whip
No reason mlm can't get the same deal.
Except then Michael Johnson wouldn't get an annual salary in the neighborhood of (2011) more than $89.4m. (I realize that he exercised more than 1.8m stock options and that's included in that figure.)
Still....
