USANA Health Sciences Inc. Q3 2008 Earnings Call Transcript

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2008-10-15 14:29:12.0

Tags: Goldman Sachs & Co., Call Transcript, Earnings, USANA Health Sciences Inc., Construction, Sales Strategy, Sales, Seeking Alpha, Goldman Sachs & Co., Call Transcript, Earnings, USANA Health Sciences Inc., Construction, Sales Strategy, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from the line of [Simian Dutman] – Goldman Sachs.

[Simain Dutman] – Goldman Sachs

A couple of questions, first, on the matching promotion, you mention in the remarks that some of the sales probably were pushed into the second quarter, does that reflect just what was happening at the last minute or was there some additional because I think the window that people can sign up expanded by about a week. Was there even more business that came through in that week, that wasn’t included in that bucket that you just mentioned earlier?

Jeff Yates

Yes, indeed we had a slight [inaudible] coming into the last week to week and a half of the third quarter with the rush, largely in the last couple of days. We did see a continuing increase in enrollment of significance going into the first quarter, excuse me, the first week of the fourth quarter. So the answer to your question is yes.

[Simain Dutman]—Goldman Sachs

And, relative to your expectations, for your existing distributor population in terms of re-qualifying, with that one time recall window, were you pleased with that response?

Mark Wilson

Absolutely, if when you think about this was an equal opportunity those at the aggressive builders probably already did the qualification when we offered the platinum pace setter life time program here a little over a year ago.

So we did not anticipate as many people that actually did so this is a very encouraging trend for us to see the individuals that found this as important and especially with the new bonuses that Fred talked about, there is a whole new interest in being qualified as a platinum pay setter.

And I imagine this system, I think the matching bonus, it probably works really well as long as the success of generations of people who come in I guess continue to strive to get their people in so that they can match.

You know, how do you ensure that success? I know that you have the convention which probably, you know, effectively rallied the existing population but then how do the people who are just coming into the business stay very motivated at the same level of energy that the existing population probably brought those people in with?

Mark Wilson

Great question, that's the key. The key is the duplication or leverage that we hope to gain off of this and that's the whole basis behind the matching bonus is we, and I think it will take some time with any change to get people to understand the new bonus, how to leverage this, how to use it in their business in building.

 

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