How business, doctors and journalists prey on your food anxieties I
How business, doctors and journalists prey on your food anxieties I
How business, doctors and journalists prey on your food anxieties I
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United Domini<strong>on</strong> Industries<br />
Unless you're a c<strong>on</strong>stipated horse, aloe juice probably<br />
w<strong>on</strong>'t cure <strong>your</strong> ailments . But a lot of people d<strong>on</strong>'t know<br />
that, <str<strong>on</strong>g>and</str<strong>on</strong>g> this has made Rex Maughan very rich .<br />
Jan Ver Hagen, UDI's eh7ef operedng ofFicer<br />
"I'li be like Pac•Man, nibbiing at costs ."<br />
Bridge . After years of losses, Domini<strong>on</strong><br />
Bridge brought in someu'hat less<br />
than $20 milli<strong>on</strong> ; Holl<str<strong>on</strong>g>and</str<strong>on</strong>g> used the<br />
proceeds to help keep debt down to a<br />
minimum .<br />
While Holl<str<strong>on</strong>g>and</str<strong>on</strong>g>, now 56, restructures<br />
the corporati<strong>on</strong>, Chief Operating<br />
Officer Jan Ver Hagen looks after<br />
the daily operati<strong>on</strong>s . Hired a« ay last<br />
year from Emers<strong>on</strong> Electric, where he<br />
was vice chairman, Ver Hagen, 57,<br />
says his goal is to increase United<br />
Domini<strong>on</strong>'s 8 .5% operating margin<br />
to 11 .5% in 1997 <str<strong>on</strong>g>and</str<strong>on</strong>g> its 12 .7% return<br />
<strong>on</strong> equin, to 15% by 1999 . Grins Ver<br />
Hagen : "I plan to be like Pac-Manendlessly<br />
nibbling away at costs ."<br />
The results show . Last year United<br />
Domini<strong>on</strong>'s sales rose 11%, to $2<br />
billi<strong>on</strong>, <str<strong>on</strong>g>and</str<strong>on</strong>g> such is the operating leverage<br />
in the comparrv that net income<br />
jumped 56°%, to $62 milli<strong>on</strong>,<br />
SI .55 a share .<br />
With the sale of its service <str<strong>on</strong>g>business</str<strong>on</strong>g>es,<br />
United Domini<strong>on</strong>'s revenues<br />
will probably remain around S2<br />
billi<strong>on</strong> this year ; but earnings may<br />
climb another 23%, to around $1 .90<br />
a share .<br />
The folks who run United Domini<strong>on</strong><br />
have no regrets about having<br />
pulled out of Canada's stagnant ec<strong>on</strong>ome,<br />
burthev do «ish chey hadn't lost<br />
Giddings & Lewis al<strong>on</strong>g the way . The<br />
moral of this story is : It's not enough<br />
to know where you're going . You'd<br />
better have a good plan for getting<br />
there, too. m<br />
dccoafltNGTO Phoenix <str<strong>on</strong>g>business</str<strong>on</strong>g>man<br />
Rex Maughan, Alex<str<strong>on</strong>g>and</str<strong>on</strong>g>er the Great<br />
c<strong>on</strong>quered the East African isl<str<strong>on</strong>g>and</str<strong>on</strong>g> of<br />
Socotra to obtain its aloe plants to<br />
soothe his soldiers' Nrounds . Never<br />
mind that Socotra is 1,500 miles<br />
southeast of dte southernmost point<br />
of Alex<str<strong>on</strong>g>and</str<strong>on</strong>g>er's c<strong>on</strong>quests . Historv<br />
isn't Rex Maughan's <str<strong>on</strong>g>business</str<strong>on</strong>g> . Peddling<br />
products with supposed medicinal<br />
qualities is his <str<strong>on</strong>g>business</str<strong>on</strong>g> .<br />
Maughan, who is in his late 50s, is<br />
founder <str<strong>on</strong>g>and</str<strong>on</strong>g> sole owner of Phoenixbased<br />
Forever Lis, ing Products Internati<strong>on</strong>al<br />
. Forever Li ving sells deodorants,<br />
toothpaste, laundry detergent<br />
<str<strong>on</strong>g>and</str<strong>on</strong>g> three dozen other p roduas, nearly<br />
all of%chich c<strong>on</strong>tain estract ofaloe, a<br />
cactuslike succulent plant comm<strong>on</strong> to<br />
some desert areas . Half his <str<strong>on</strong>g>business</str<strong>on</strong>g><br />
comes from a single product, drinkable<br />
aloe gel, a tart extract that looks<br />
like pineapple juice <str<strong>on</strong>g>and</str<strong>on</strong>g> tastes like<br />
turpentine . A quart ofthis stuff retails<br />
for ^J .14 .95 . People drink it straight or<br />
mixed with fruit juices. Forever Living<br />
also does a big <str<strong>on</strong>g>business</str<strong>on</strong>g> in bee<br />
pollen, which some people are persuaded<br />
cures hay fever (Foaaes, Apr . 24) .<br />
Forever Living is <strong>on</strong>e of what are<br />
called multilevel sales organizati<strong>on</strong>sor<br />
ppramids . These outfits recruit armies<br />
of fidl-time <str<strong>on</strong>g>and</str<strong>on</strong>g> part-time salespeople,<br />
who instead of working <strong>on</strong><br />
com missi<strong>on</strong> typically buy the products<br />
<str<strong>on</strong>g>and</str<strong>on</strong>g> then sell them at a profit .Acharao<br />
teristic of such outfits is that more<br />
m<strong>on</strong>ey %i•orks its way to the top of the<br />
pyramid than stays at the bottom . The<br />
big m<strong>on</strong>ey is notin selling the stuff, but<br />
in recruiting people to sell [Ite stuff .<br />
A new salespers<strong>on</strong> at Forever Livin g<br />
Forever ~_Iving's<br />
orcduc .s<br />
Rex Maughan<br />
says his<br />
distributors<br />
moved close to<br />
$1 billi<strong>on</strong> worth .<br />
98 Forbes e August 14, 1995 i<br />
http://legacy.library.ucsf.edu/tid/agf97d00/pdf<br />
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