Thanks Hakki!

However, are these companies adding things like the shipping cost, warehouse cost, labor, to the cost of the “product”? What about things like rep support cost etc.?

Public companies can justify some of these added cost per item sold and I wonder if that is being added to the actual ingredient and Mfg cost of the product.

Ex: if a product cost two dollars to purchase, is that the cost you used in this multiple? Or may one add another $2 dollars for warehouse, $1 for returns/allowances/bad debt and another $2 for R&D of future products?

I would imagine it’s not very difficult to add cost to the actual product cost to make the cost multiple look smaller than it really is.

So the accounting method may have as much to do with us as the actual mark up?

Hello Glenn,

You might want to check any public non-direct selling company’s website for its periodical financial reports. There, they publicize all these figures.

Thank you!

Hakki Ozmorali