Are Kangen water® ionizers too expensive because of MLM distributors? Everyone says the company pays out $2280 when you buy a $3980 SD-501. Isn’t that outrageous? Wouldn’t it be better to keep that money in your pocket and buy a $2000 water ionizer that isn’t sold through MLM? That would save you $2000 !!! That’s a lot of money. Wow what a good deal if you can get the same or far better quality water ionizer for half price. Are they telling you the truth? Or is it a scam? Here are the facts.
Companies are in business to make money. They need to cover their expenses which include salaries, employee benefits, advertising, phone, administrative costs, etc plus a profit. Is it possible that companies are selling $4000 water ionizers for $2000 because they’re not an MLM? If they bought their machines for $2000 and sold them for $2000, how much money would they make? Would it cover their expenses and profit requirements? Are they working for free?
I did some research. I typed in ‘water ionizer manufacturers Korea’ into a Google search. Then I contacted several manufacturers asking for a price. I found that I could purchase those cheap machines from Korea for around $200 and sell them here in the US for $1500 to $3500. None of the manufacturers I contacted said their machines are medical grade. None had any medical certificates.
The marketing costs on a $4000 SD-501 Kangen machine is approximately $2280. Out of that, Enagic® distributors pay all their expenses and advertising costs. Therefore if you do the math you’ll see that $3980 – $2280 = $1700. Thus, if Enagic® sold their machines to wholesalers, it would cost $1700 to buy a new SD-501. Then if you were able to sell the machines for the suggested retail price of $3980, you could make $2280 on every sale. Sounds like a lot of money but by the time you pay yourself a salary, medical insurance, advertising costs, gas, insurance, phone, income taxes, self employment taxes, and other normal costs of doing business, very little money is left.
Enagic® competitors say, go ahead, contact an Enagic® distributor. Let them educate you on the benefits of Kangen Water®. Go to their meetings. If they let you try the water, do that and experience the difference. Then when you’re ready to buy, come to us and we’ll sell you a better machine for half the price because we’re not an MLM.
So let’s see how much Enagic® competitors make. Retail price $2000 – cost price $200 = $1800 profit. That’s a 1000% markup. On an SD-501 for $3980 the markup is 235%. Do you really want to buy a $2000 water ionizer from an Enagic® competitor? They lied to you about price. What else are they lying about?
If you don’t have $4000, Enagic® sells ISO certified medical grade water ionizers for as little as $1280. The marketing costs on that machine is $640. That’s how much distributors make. That means the cost price to make Enagic’s least expensive machine is $1280 – $640 = $640. ($640 cost price to make in Japan, vs $200 cost price to make cheap knock off, imitation machines in Korea)
Let’s compare. The cheap non-medical grade machines from Korea cost $200+- to buy and you can sell them for $2000+- Or you can buy a quality certified medical device that wholesales for $640 and retails for $1280.
Enagic® Water Ionizers
- Leveluk R $1480 (updated June 2013)
- JRII $2380
- DXII $3280
- SD501 $3980
- Super SD501 $5980