Tuesday, June 24, 2008 by Dr. Manny
It's no secret that the entire nation is experiencing higher costs, mostly due to the drastically rising oil prices. Medifast is no exception. Our production costs are rising to produce the Meals that keep you and your Medifast Clients healthy and, as any responsible company would do, we must make adjustments in order to remain the sturdy company that we are today.
Price Adjustments:
Effective July 1, 2008, a price adjustment will be instituted to our Medifast Meals. This adjustment is essential and reflects our need, as a growing company, to provide a stable economic platform for our Health Coaches, in order to secure everyone's opportunity for furthered success with Take Shape For Life.
Note: BeSlim Club & Rewards members will notice an automatic increase in the amount charged to their credit card for orders shipped to them after July 1. Please pass this information along to your Clients in the BeSlim Club.
The new Medifast product prices that you will find on the Shopping Cart and Order Form beginning July 1 are as follows:
Medifast 4-week 55 core variety package................$299.50
Medifast 4-week 70 core variety package................$299.50
Medifast 4-week diabetes core variety package.......$299.50
Medifast 2-week 55 core variety package................$154.50
Medifast 2-week 70 core variety package................$154.50
Medifast 2-week diabetes core variety package.......$154.50
Medifast 4-week 55 enhanced variety package........$327.50
Medifast 4-week 70 enhanced variety package........$327.50
Medifast 4-week diabetes enhanced variety pack.....$327.50
Momentum Weight Loss Package...............$353.50
Momentum Maintenance Package..............$169.50
all products priced $14.50.........................$15.50
all products priced $15.25..........................$16.25
all products priced $16.95..........................$16.95
all products priced $18.95..........................$18.95
all products priced $21.95..........................$21.95
Super Omega-3.........................................$27.50
Crackers...................................................$4.50
Soy Crisps.................................................$6.75
Ready-to-Drink (each)...............................$3.25
Ready-to-Drink (case/24)..........................$69.95
NEW Calculation For Commissions:
Health Coaches will also help share the increasing costs with the replacement of Retail Price with Adjusted Retail Price (ARP), set at 98% of the Retail Price, in the calculation of your 15% or 20% commission.
With this change, understand that you will still earn more money on the orders your Clients place in July than you did in June. However, you will be earning a slightly smaller percentage on a higher price due to the introduction of ARP.
Example:
Before July 1, 2008
If a Client orders $300 of Medifast food, you earn:
Retail Price = $300 (what your Client pays)
Your commission is $300 X 20% (or 15%) = $60
After July 1, 2008
If a Client orders $324 of Medifast food (6% cost increase), you earn:
Retail Price = $324 (What your Client pays)
Adjusted Retail Price (What you get paid on) = $317.52
Your commission is $317.52 X 20% (or 15%) = $63.50
Commissionable Volume (CV) will also be calculated on the ARP (not the Retail Price) and will remain at roughly 50% of the ARP. Monthly bonuses will also be determined using the new CV.
We greatly appreciate your cooperation and understanding as we institute these company changes. Be assured that this decision was made to ensure the continued success of Take Shape For Life and the thousands of Health Coaches that are working everyday to build Optimal Health throughout the nation.
