Automatic Delivery Rewards The Basics
AUTOMATIC DELIVERY REWARDS • Automatic Delivery Rewards, or ADR, is a programme where Distributors and Customers can sign up to receive products on a monthly basis. • Distributors and Customers who sign up on ADR will receive discounted pricing, shipping and the ability to earn product points, which can be redeemed for free product.
ADR OBJECTIVES • Provide Distributors with a loyalty programme that allows them to improve retention of new recruits. • Save subscribers time and money by allowing them to completely manage their account online, eliminating the need to call for support. • Promote the monthly automatic purchase of product.
ADR ENROLMENT OPTIONS Distributors and Customers can enrol in the new ADR programme through the following methods: • Online • Fax/Post • Concept Stores
ADR BENEFITS Benefits received each month • 5% discount off of the wholesale price. • Discounted shipping rate (as much as 50%). • Earn product points: • 20% product points earned for monthly shipments for the first 12 months. • 30% product points earned for monthly shipments beginning on the 13 th ADR.
ADR PRODUCT POINTS Not all products in the picture available in all European markets. Please check your local market’s pricelist for more information. • Product points are awarded the first day of the month for orders placed in the previous month. • Up to 75 product points can be earned per month. • Up to 900 product points can be earned per year. • Product points not redeemed will expire after one year. • Product points are awarded based on the monthly ADR order’s Personal Sales Volume (PSV)* total. • Product points are only earned/redeemed in your local market. *PSV: Personal Sales Volume is the monthly point value of the products and services you purchase from the Company, primarily for personal consumption. PSV includes points from purchases made directly from the Company by your personal retail customers.
ADR PRODUCT POINTS Distributors and Customers can redeem product points through the following methods: • Online • Fax/Post • Concept Store Product points are redeemed for free product: • Products must be paid for in full with product points. • International ADRs do not earn product points, but get the 5% discount and discounted shipping.
ADR Requirements Minimum* order size of 50 PSV** after discount • Orders below minimum requirement may be set up as recurring orders, but you will not receive discounted shipping and product points *In order to earn commissions, Distributors must have a monthly, minimum of 50 PSV ADR after discount included into their monthly PSV. **PSV: Personal Sales Volume is the monthly point value of the products and services you purchase from the Company, primarily for personal consumption.
BUSINESS PORTFOLIO • New Distributors who enrol on ADR with a minimum of 50 PSV after discount at signup, receive a complimentary Business Portfolio. • New Distributors who do not enrol on ADR with 50 PSV – Regular cost of registration fee after discount, but place a (including Business Portfolio) for minimum 100 PSV regular new Distributors: order at signup, also receive § Fax/Post: € 20* (excl. VAT) a complimentary Business § Online: € 10** (excl. VAT) Portfolio. * CHF / CZK / DKK / 17 GBP/ HUF / ISK / NOK/ PLN / RON / RUB / SEK / SKK / TRY ** CHF / CZK / DKK / 8. 50 GBP/ HUF / ISK / NOK / PLN / RON / RUB / SEK / SKK / TRY
ADR MANAGEMENT OPTIONS ADR accounts can be managed online: • Product, process date, shipping address and payment method can all be changed. • Points can be redeemed. • Orders managed through the Customer Service will receive a handling fee. Select Products Set Up ADR Order Automatic Monthly Shipment Receive Products
WHAT HAPPENS TO MY EXISTING ADP? All ADP participants already enrolled before the new ADR launch will maintain current pricing and benefits until the Automatic Delivery Programme (ADP) is modified. New products added to grandfathered* RU ADPs from 01 September, 2009 will get 5% discount on price and PSV and earn product points. *Grandfathered ADP: ADP placed before 01 September 2009.
WHY IS THE NEW ADR PROGRAMME BETTER? It is simply a MUCH GREATER VALUE! If you currently receive a 10% discount with the Automatic Delivery Programme (ADP), you may choose to receive 135% to 203% greater value when you purchase Nu Skin ® and Pharmanex® products by converting to the new ADR programme. Below is an example of the greater value you can receive when you purchase Life. Pak ® on ADR. In the below examples Russian prices and PSV are used. AUTOMATIC DELIVERY PROGRAMME (ADP) (Current Programme) Life. Pak* (Example)- 69, 58 PSV 2299, 00 RUR @ 10% Discount= 2069, 1 RUR (62, 62 PSV) Shipping = 165, 5 RUR (184 RUR) incl. VAT Total = 2234, 6 RUR incl. VAT Total Savings = 248, 32 RUR(229, 9 RUR+18, 42 RUR) Total Value =248, 32 RUR(Savings) AUTOMATIC DELIVERY REWARDS (ADR) (New Programme – 01 September) Life. Pak* (Example)- 69, 58 PSV 2299, 00 RUR @ 5% Discount = 2184, 05 RUR(66, 1 PSV) Shipping = 174, 72 RUR (183, 92 RUR)incl. VAT Total = 2358, 77 incl. VAT Total Savings = 124, 15 RUR (114, 95 RUR+9, 2 RUR) ADR@ 20% Product Points (69, 58 X 20%= 13, 92) Savings of 124, 15 RUR and Product Value of 460 RUR (13, 92 Product Points X ERM) Total Value= 584, 15 RUR Compare the Two Programmes *ERM – Exchange Rate Multiplier 135% Greater Value ADR@ 30% Product Points (69, 58 X 30%= 20, 9) Savings of 124, 15 RUR and Product Value of 627, 8 RUR (20, 9 Product Points X ERM*) Total Value X 30% = 752 RUR 203% Greater Value
WHY IS THE NEW ADR PROGRAMME BETTER? It is simply a MUCH GREATER VALUE! If you currently receive a 20% discount with the Automatic Delivery Programme (ADP), you may choose to receive 51% greater value when you purchase Nu Skin ® and Pharmanex ® products by converting to the new ADR programme. Below is an example of the greater value you can receive when you purchase Life. Pak ® on ADR. In the below examples Russian prices and PSV are used. AUTOMATIC DELIVERY PROGRAMME (ADP) (Current Programme) Life. Pak* (Example)- 69, 58 PSV 2299, 00 RUR @ 20% Discount = 1839, 2 RUR (55, 67 PSV) Shipping = 147, 1 RUR (184 RUR)incl. VAT Total = 1986, 3 RUR incl. VAT Total Savings = 496, 7 RUR (459, 8 RUR+36, 9 RUR) Total Value = 496, 7 RUR AUTOMATIC DELIVERY REWARDS (ADR) (New Programme – 01 September) Life. Pak* (Example)- 69, 58 PSV 2299, 00 RUR @ 5% Discount = 2184, 05 RUR(66, 1 PSV) Shipping = 174, 72 RUR (183, 92 RUR) incl. VAT Total = 2358, 77 incl. VAT Total Savings = 124, 15 RUR (114, 95 RUR+9, 2 RUR) ADR@ 30% Product Points (69, 58 X 30%= 20, 9) Savings of 124, 15 RUR and Product Value of 627, 8 RUR (20, 9 Product Points X ERM*) Total Value X 30% = 752 RUR Compare the Two Programmes *ERM – Exchange Rate Multiplier 51% Greater Value
WHY IS ADR BETTER FOR BUSINESS? Automatic Delivery Rewards (ADR) simply rewards 5, 6% to 19% MORE Personal Sales Volume (PSV)! More PSV pays you more commissions. Nu Skin ® continues to reinforce our vision of paying you more commissions than any other company. In the below examples Russian prices and PSV are used. AUTOMATIC DELIVERY PROGRAMME (ADP) (Current Programme) Life. Pak* (Example) Regular Pricing Retail 3287, 57 RUR 69, 58 PSV Wholesale 2299, 00 RUR 69, 58 PSV ADP Pricing 10% Discount 2069, 1 RUR 1839, 2 RUR 62, 62 PSV 55, 67 PSV AUTOMATIC DELIVERY REWARDS (ADR) (New Programme – 01 September) Life. Pak* (Example) Regular Pricing Retail 3287, 57 RUR 69, 58 PSV Wholesale 2299, 00 RUR 69, 58 PSV New ADR Pricing 5% Discount 2184, 05 RUR 66, 1 PSV 5, 6% More PSV Compared to 10% Discount 19% More PSV Compared to 20% Discount
Russia Differences ADR Overview OLD ADP NEW ADR* X X Online management Choice of process date (see table below) 5% off wholesale prices X ADP price discount: 10% product discount (Run 1 -6) X 50 PSV to receive ADR benefits X Canceling ADR at no cost X Pay for registration fee X Monthly One ADR order of the same ADR per month X * X X Holds, maximum of 3 holds per calendar year *As long as the ADR is a minimum of 50 PSV after discount, the registration fee is waived. X X
Russia Differences Online Differences Sign-up a New Distributor Sign-up a New Preferred Customer Sign-up a New Retail Customer Sign-up on ADR Management: Select Process Date Select Desired Product Select Ship-to Address Select Payment Method Most Payment Methods accepted* Redeeming Points on Inquiries and Overrides Cancel ADR Placing Holds Redeem Points on One-time Online Orders Receive ADR Prices OLD NEW X X X X *Please check with your local Customer Service to find out the exact payment methods offered in your market for ADR. Product Point Differences OLD NEW Product Points Based on ADR PSV Total X Online Order with Product Points (One-time or ADR) X Max. of 75 Product Points Earned Per Month Per Account X Max. Number of Product Points on an Account (900) X Expiration Date on Product Points X Expiring Product Points Shown Online and on Receipts X Returned Products Lose Product Points Earned X
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