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Herbalife Ltd. Message Board

  • cacainusa cacainusa Dec 26, 2012 4:23 PM Flag

    Ackman attacked HLF business model not product

    For those who are not aware of HLF, it is
    What subway is against McDonnell and other fast food restaurants?
    What Gatorade is against other soft drinks like Coke and Pepsi?

    HLF products are made from natural elements, plants, and very little chemicals. This is why HLF product got huge popularity among health conscious consumers in such a short period of time.

    Auto industry works on same business model: Dealers sell the cars below invoice and MSRP and get rewards from Auto companies.

    And Warren Buffet said two things: 1. Buy the Shares when others are fearful 2. If you believe in some product, then you should invest in it.

    Sentiment: Strong Buy

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    • Good post. Many of the folks who retail Coca Cola or Budweiser are little mom and pop groceries who make small profits. And, some of those little mom and pop groceries go out of business, change ownership, or reorganize.

      Yet, while some of the retailers handling their product go belly up, nobody would label Coca Cola or Budweiser a Ponzi scheme. Except, perhaps, for a few hedge funds.

      Sentiment: Strong Buy

      • 1 Reply to renomike99
      • you people keep missing the main point. Nobody makes any profit selling this at retail except to family and friends who feel sorry for them for a while. It isnt a retail selling company at all. It is a continuous recruiting company. If they had a model where they tried to simply hire salespeople to sell this product at inflated prices I would have no problem with it. But they could not get anyone to do that without tying in the recruiting money making option because nobody wants to or expects to sell the stuff retail THEMSELVES. they all think some other sucker will do it.

    • Why would you buy HLF's #$%$ products when you can buy GNC's #$%$ products for a 1/3 of the price?

      Sentiment: Strong Sell

    • they try to sell commodity products at three times the suggested retail price of the competition. the only reason it works is because they tie the sale of product to a business opportunity. the products are nothing special. hundreds of other companies sell the same stuff for 1/3 to 1/2 the price. without the pyramid recruiting scheme it all falls apart. nobody is good enough sales person to sell significant amount of product at retail at double the price of competition. Can only sell to other suckers who want to buy into business opportunity.

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