ITEM’s Nevoton® Magnet Products Distributor Program provides substantial discounts when products are ordered in quantity – with no quotas to meet – EVER!
This program report focuses on distributing the Nevoton® Biocorrector™ for ITEM as a representative product in the Nevoton® product line. You may, however, elect to distribute any or all of the products listed below.
Market research shows that the selling price of most magnet therapy devices generally ranges from a minimum of $45 to a maximum of $70. Since the Biocorrector™ has many more functions and features than a simple magnet, it has a greater market value, and is easy to sell for a higher price than competing magnet therapy devices. The Biocorrector™ itself has been sold in Germany, Italy, and France for between $90 and $120, and for as high as $150.
While ITEM’s original assessments determined a retail price of $80 for the Biocorrector™, our market research shows that the optimal retail price for the Nevoton® Biocorrector™ is $45. This gives plenty of room for distributors to make healthy profits, and makes this business more lucrative by making the Biocorrectors more accessible to the consumer, promoting high volume sales. At any price, the Biocorrector™ is more competitive because of its more advanced technology and additional uses, and therefore can be expected to outsell other magnet therapy devices.
ITEM has chosen to open the market by selling only the Biocorrector™ MK-37.2 LUX model at this time, which comes which extra acupressure attachments and a pendulum attachment. This choice is intended to avoid confusing consumers with multiple models before the product is well known, and to give the maximum number of selling points to appeal to consumers with various interests. However, if a distributor feels they would be more successful beginning with another product in the Nevoton® line, or a different model of Biocorrector™, ITEM will gladly make arrangements at any time for the alternative product to be supplied on a regular basis. Because of the extra expense in printing English instructions and packaging for each new product which we offer, it may be necessary to have an initial order of up to 1,000 units to bring a new product to market.
During May 1999, ITEM’s Moscow staff completed a thorough inspection of Nevoton’s manufacturing facilities in St. Petersburg, Russia, including individual interviews with the managers and employees of those facilities.
Nevoton’s manufacturing is performed by contract partners. There are two regular companies which they use, plus a third which is used occasionally. As a result, there is no limit to how many Biocorrectors or other devices can be produced per month, given 1-3 months notice. They would simply make use of the second and third manufacturing plant, and could even sign contracts with a fourth or fifth company.
ITEM visited only one plant, the one primarily used for all of Nevoton’s production needs. The facilities consist of a metal processing building, with two floors of automatic machine tooling equipment, and a separate headquarters location with 3 buildings of 3 floors each. Two floors of one building is a shrinkwrap and packaging plant, which processes 150 tons of material per month. There is also a full floor of an assembly plant.
All machines and equipment in both locations are new and modernized. The facilities are totally modern, clean, and professional, with Western safety standards. The manufacturing plant is under strict and tight management, and ITEM has verified through multiple reliable sources that there is absolutely zero graft. They are planning upward construction for a 4th floor of all 3 buildings at the headquarters, to expand their facilities.
At this time, the plant is prepared to manufacture 200,000 Biocorrectors per month. One of the most outstanding features is that the company creates and builds their own automatic machine tooling and other manufacturing machines. Therefore, expansion would be simple, fast, and inexpensive, and they would be completely flexible for handling any volume of orders, including for world wide sales.
The final assembly of the internal parts of the core of the Biocorrector™ capsule is performed in a small room inside Nevoton’s headquarters, to provide control over trade secrets. Like the manufacturing plant, this operation is also adequate to produce up to 200,000 units per month. Simply expanding into a second room with 2 or 3 additional employees would be sufficient for assembling the cores of 400,000 units per month. In the event that order volume will exceed 200,000 per month, ITEM will work together with Nevoton® to increase their manufacturing capabilities and expand their facilities.
Nevoton® has existed since 1991, and has not only survived several financial crises in Russia, but rather prospered, increasing its market share in Russia every year. Therefore, you can be assured by both ITEM and Nevoton® that there will be a reliable continuity of supply.
LEGAL PROTECTION OF ASSETS
ITEM’s President and Chief Legal Counsel conducted a full legal interview and analysis with Nevoton® management. It was established that the Biocorrector™ is currently protected by 3 separate patents. This means that ITEM has the extra advantage of being able to advertise the Biocorrector™ as being “Triple Patented”. Nevoton® has also made subsequent improvements which are the basis for future patents when the original patents expire. Most interestingly, the same improvements can be kept as legally protected trade secrets, which could be defended forever without time period limits.
As a result of many legal subtleties which are beyond the scope of this report, the Nevoton® products have the unique benefit and advantage of being qualified for both patent protection as well as trade secret protection, for the same technologies. This is a very rare legal situation, which provides ideal protection of these assets.
Nevoton® has already done everything possible and necessary to establish its legal rights to enforceable trade secret protection. They already had all of their employees sign confidentiality contracts. Also, the magnetic elements are blended in-house at Nevoton®, and no partners or manufacturers are allowed to know the process. Manufacturers only work on component parts, and have no knowledge of how the device works as a whole, or what other elements or processes go into the Biocorrector™.
It was also found that all of Nevoton’s products already have patents, advancements for new patents, and distinguishable trade secrets. All together, this gives us complete and permanent protection of intellectual property assets, so we can invest, market and sell with confidence, and the strongest possible legal position if ITEM ever needs to go to court against would-be competitors.
The name “Nevoton” is a registered trademark ®. The word “Biocorrector” is an enforceable trademark in the US, marked (TM), without any need for registration, and the instruction booklets and advertisements are under international copyright protection and will be registered with the US Copyright Office. The copyrights of the English versions are already owned jointly by Nevoton® and ITEM. This will prevent would-be competitors from making similar claims on other devices, because all of the language, descriptions and explanations necessary to sell such devices will be under our copyright.
ITEM is determined to be a good business partner to its distributors. We have taken full responsibility for managing the business with Nevoton®, and maintain all necessary resources to ensure the stability of both the Russian and United States parts of the business. Distributors can confidently rely on our scientific, legal, political and business resources, and have no doubt that our long-term cooperation will be mutually profitable.
ITEM is prepared to offer full support to its distribution partners. As a scientific and educational corporation, ITEM has a wealth of scientific information, reports and books which support the desirability and value of Nevoton’s product line, and lend credibility to the advertising claims of ITEM and its distributors.
ITEM has 4 distinct roles in creating, implementing and managing the business with NEVOTON® magnet therapy and bioenergy devices:
1) In establishing and expanding the business, ITEM plays the role of a scout – locating, evaluating and negotiating with potential business partners in the Russian Federation, and selecting the products which are the most marketable and the most profitable.
2) In expanding and maintaining the business, ITEM also plays the role of an author, or creator, of new intellectual property – translating original instructions and advertisements from Russian to English to create a starting draft, using its own scientific research to reorganize, expand and rewrite these materials, and applying its business and legal resources to edit the materials in accordance with the cultural and legal requirements of the market countries.
3) In implementing the business, ITEM plays the role of a “turn-key operation” — developing relations with foreign partners and establishing trust, working together with foreign partners in developing and implementing the business, and troubleshooting and problem solving to establish the mechanisms for stable and profitable long-term operation of the business.
4) In managing the business, ITEM plays the role of a joint venture partner — providing marketing, advertising and scientific support to its distributors, maintaining a central US office as a base of operations, and managing all relations and transactions between Russian manufacturers and ITEM’s distributors world wide.
Due to ITEM’s international presence on the Internet, we acknowledge that in practice, distributors in the US and Canada may not be able to sell Nevoton® products for higher than ITEM’s advertised prices. Distributors outside of the US and Canada, however, may be able to sell for much higher European prices, depending on the market in their geographic area. In order to promote and support the freedom of distributors to sell for the highest market prices in their area, ITEM will provide its distributors with copies of its Free Magnet Therapy Reports, and informative advertising reports for Nevoton® products. Distributors can reproduce these reports and advertisements in a context free from ITEM’s Internet presence.
Because of the aggressive discounts which ITEM provides to its distributors, however, distributors can comfortably and profitably sell Nevoton® products for the same retail price that ITEM sells them for. Because of this win-win situation, distributors can safely refer clients to ITEM’s web site to view free reports and other information which supplements and supports the legitimacy and effectiveness of the Nevoton® products. In general, it is highly recommended to sell the Nevoton® products for the same retail price offered by ITEM. This will boost the credibility and good reputation of distributors if customers find the Biocorrectors sold elsewhere at ITEM’s price, and will make the distributor’s business more lucrative by promoting a higher volume of sales.
The following Distributor Price List is based on ITEM’s most current figures of the manufacturer costs, ITEM’s fixed internal costs, and our best estimates of how these costs are reduced in proportion to the volume of orders.
The price list offers greater discounts for larger numbers of units per distributor order. This discount structure should not be perceived to indicate any lower value of the products, nor should it be construed to imply that better prices are available for lower volume distributor orders. The policy of incrementally increased discounts for higher volume orders is based upon a principle which is a win-win situation for both ITEM and its distributors. By encouraging distributors to make larger volume orders, this allows ITEM to buy even larger quantities of the products from the manufacturer. As a result, ITEM can buy units in a higher volume than the distributors can, reducing the costs to all distributors.
In this way, ITEM lowers the costs for distributors who will make lower volume orders, and ITEM reduces its own profits to encourage larger distributors to order more products at a time. This structure also takes into consideration the increased advertising and marketing expenses necessary for distributors to sell a higher volume of products. Therefore, the distributor pricing structure makes the whole business more stable, and more profitable for everybody involved.
The Basic Pricing Structure is determined by associating a percent discount for each number of units ordered in the same distributor order.
| Units per Distributor Order | Percent Discount from Retail Price |
| 1 – 20 | 30% |
| 21 – 50 | 35% |
| 51 – 100 | 40% |
| 101 – 200 | 45% |
| 201 – 1,000 | 50% |
| 1,001 – 5,000 | 55% |
| 5,001 – 10,000 | 60% |
| 10,001 – 20,000 | 65% |
| > 20,000 | 70% |
The Distributor Price List, shown below, is simply the Basic Pricing Structure together with specific information about the actual cost to the distributor for each unit. The Distributor Price List is for the Biocorrector™ MK-37.2 LUX, assuming a Retail price of $45. The percentage discounts also apply to Nevoton’s other products, including the Kryton™ Anti-Radiation Booster, Anti-FON™ Booster, and others not currently advertised on ITEM’s web site such as the Drink Coaster Permanent Induction Magnet™ (PIM™), Basic Biocorrector™ and the Photom™ Infrared Light Therapy Pen.
| Units per Order | Percent Discount from Retail price | Distributor Price per Unit | Distributor Profit per Unit |
| 1 – 20 | 30% | $ 31.50 | $ 13.50 |
| 21 – 50 | 35% | $ 29.25 | $ 15.75 |
| 51 – 100 | 40% | $ 27.00 | $ 18.00 |
| 101 – 200 | 45% | $ 24.75 | $ 20.25 |
| 201 – 1,000 | 50% | $ 22.55 | $ 22.55 |
| 1,001 – 5,000 | 55% | $ 20.25 | $ 24.75 |
| 5,001 – 10,000 | 60% | $ 18.00 | $ 27.00 |
| 10,001 – 20,000 | 65% | $ 15.75 | $ 29.25 |
| 20,001 or more | 70% | $ 13.50 | $ 31.50 |
An additional benefit to distributors is that they will only pay for actual shipping costs for their whole order, and not a per unit “shipping and handling” charge such as for individual consumer orders. This gives all distributors an even wider profit margin, and the more units you buy per order, the larger your profit margin will be from reduced shipping costs.
In order to begin your distributorship, and be given the right to purchase Nevoton® products from ITEM at the distributor discount, all you have to do is place a one-time minimum first order of 10 Biocorrector™ units, Kryton™ units, or Anti-FON™ units. Once you place the initial first order of 10 units, you will never have a minimum order again, and you can order any amount you want at any time, at a distributor discount. See the table at the bottom of this page to review distributor discounts.
GOOD OLD FASHIONED BUSINESS
With network marketing or multi-level marketing (MLM) businesses, the standard profit which distributors receive is 10%. The only way to break this barrier is to set up “sub-distributors” so that you can get a smaller percent of their sales, often referred to as “points”. To be successful at such a business, it is necessary to overcome many obstacles, such as people becoming sub-distributors only to receive a discount for themselves, and lack of motivation. mWhile some people are truly successful with MLM structures, they heavily rely on motivational speaking and presentation skills which can be quite unique. Many talented, rich and powerful businessmen and businesswomen do not necessarily have the highly specialized skills which are necessary for successful network marketing.
With ITEM’s Distributor Pricing Structure, you will not have to worry about losing track of a paper trail, or how somebody else calculates your “points”. Your growth does not depend on all kinds of human variables which are out of your control. When you first begin as a distributor for ITEM, you will already enjoy a profit margin of 30% of the retail price – much better than a 10% sales commission. The best thing about being an ITEM distributor is that your growth as a distributor, and your ability to achieve higher levels with greater profit margins, depends entirely on you. You are fully in control of your distribution business, and if you take it seriously as a real business, no external factors can limit your growth or your success.
Most network marketing or MLM businesses prohibit distributors from advertising in published media or on the Internet. As a result, you are restricted to door-to-door sales and in-person demonstrations. With these restrictions, you can only build your business by relentless time consuming efforts motivating people to become and remain your sub-distributors. With ITEM, you are allowed to market in any way you want, as long as you don’t make illegal claims, or make warranties beyond those provided by ITEM. This gives you the freedom to use your best business skills and experience in any way which you believe is most effective, including direct mail, local newspaper or phone book advertisements, and even on your own web site. It also allows you to maximize your time, focusing on efforts which are the most productive for you given your individual personality and style, and the demographics of your geographic area.
Because network marketing and MLM systems are dependent upon many people in a “chain”, “branch”, or “link” all getting a percent of the same sales, the retail prices of MLM products can often be unnecessarily high. This makes it much more difficult to get the regular consumer sales which are necessary to support the network marketing system.
ITEM’s distributor pricing system creates a balance between small distributors and large distributors, and balances the needs of all distributors with the those of ITEM. The high volume orders from large distributors are used to give the maximum profit margins to smaller low volume distributors. ITEM reduces its own profits to give greater discounts to larger distributors, in order to promote and generate more high volume sales. As a result, all distributors get the lowest possible wholesale price. By giving the best possible deal to distributors, ITEM gets higher volumes of orders from all of its distributors, and makes its profit by volume, not markup. Therefore, ITEM’s distribution program creates a win-win situation for everybody, and makes this a stable and profitable business.
This system not only maximizes the profit margins of ITEM’s distributors, but also results in the lowest possible retail prices, making the Nevoton® products more competitive, and less expensive than other magnet therapy products on the market. This makes it much easier for distributors to get regular consumer sales, and more quickly sell the units from their wholesale orders.
ITEM’s distributor program is a “good old fashioned business”. You simply buy low at a wholesale price, and sell high at a retail price with a large markup. The best part is, you get into the business “at the top”, so you have complete control over managing and growing your business, and you enjoy all of your own profits. You also benefit from ITEM’s market research, advertising, and scientific reports, which give you solid tested material to help you sell your products.
The more units which you invest in per order, the higher your profit margin will be, and the faster you can jump to the next higher profit margin. If you invest a little more in advertising such as a store-front or featured display, or advertisements in magazines, newspapers, or local publications, you will increase your volume of sales, making your business larger and more profitable all the time.
Many merchants and retail sales businesses measure their profits in terms of “markup”. The term “markup” indicates a percent, which is the percent of the wholesale price that is added on to calculate the retail price. For example, if you purchase something for $70, and sell it for $100, you have literally “marked up” the product by $30. Since $30 is 43% of $70, they say that the “mark up” on the product was 43%. In other words, the percent “markup” is identical to the percent return on your investment.
Most merchants require a markup of 30% for products which they will sell in their retail business. ITEM’s Distributor Pricing Structure gives even the smallest distributor a markup of 43% right from the beginning. Some small pricey specialty boutiques require a markup of 60% if they are to carry a product in their store. If you place your wholesale orders in groups of 51 units at a time, you can enjoy an even greater markup of 67%. Your profit margin is entirely under your control, depending on how much you want to invest in your business. The following is a table showing the markup at each level of quantity per order:
| UNITS per Distributor Order | Percent Discount | Percent Markup (% Return on Investment) |
| 1 – 20 | 30% | 42% |
| 21 – 50 | 35% | 54% |
| 51 – 100 | 40% | 67% |
| 101 – 200 | 45% | 82% |
| 201 – 1,000 | 50% | 100% |
| 1,001 – 5,000 | 55% | 122% |
| 5,001 – 10,000 | 60% | 150% |
| 10,001 – 20,000 | 65% | 186% |
| 20,001 or more | 70% | 234% |
LONG-TERM SECOND INCOME
It is possible for a small distributor to begin at a very small level of sales, and use their profits to grow their business to an incredible level, achieving 100% return on their investment after only 6 orders of increasing quantity. The key to achieving this success, however, lies in selling the Biocorrectors from each wholesale order. To do this, it will be necessary to increase your sales efforts by investing a little more money in marketing and advertising each time.
Also, unlike other popular distribution structures, you can jump directly to the highest levels of profitability by simply placing larger quantity wholesale orders at the beginning of your distributorship. In order to do this, it is necessary to invest more money up front when opening your distributorship business.
Accordingly, ITEM’s distributor program works best for people who already have one job or one business. By using some of your income from your regular job to build your ITEM business, you can most easily and quickly establish a long-term second income which can dramatically improve your lifestyle.
Because of the great flexibility which ITEM gives its distributors in marketing methods, ITEM’s NEVOTON® products are an ideal supplement to other alternative health related products which you may already sell as a merchant or distributor.
In addition to the Biocorrector™ MK-37.2 LUX, Nevoton® has a line of other products which are complementary to the Biocorrector™. All of the current and even future products of Nevoton® are included in ITEM’s distribution rights. Among those products currently available are:
1) Biocorrector™ Basic – the basic Biocorrector™ capsule which has no needles nor any other attachments, hung horizontally from an elastic cord directly attached to the capsule, to be completely safe for children.
2) Drink Coaster Permanent Induction Magnet™ (PIM™) – high-tech drink holders containing Biocorrector™ magnet components, which electromagnetically charge and structure your drink with healthy bioenergies.
3) Kryton™ Anti-Radiation Booster – a disk shaped Biocorrector™ with a space aged microcircuit powered by a peizo crystal, which is precision engineered as a defense against harmful radiation and electromagnetic fields from computers and other technologies.
4) Anti-FON™ Booster – an advanced, high-tech Biocorrector which boosts health, and improves physical and mental performance during use of cordless and cellular phones, and radio communication technologies.
5) Photom™ Infrared Light Therapy Pen – delivers contactless electromagnetic therapy to acupuncture and meridian points, improves skin, and helps prevent wrinkles.
If a distributor would like to add another product in the Nevoton® line or a different model of Biocorrector™ to their distribution business, ITEM will gladly make arrangements at any time for the additional product to be supplied on a regular basis. Because of the extra expense in printing English instructions and packaging for each new product that we offer, it may be necessary to have an initial order of up to 1,000 units to bring a new product to market. ITEM can in many cases provide samples to any distributors considering opening their market with Nevoton® products which ITEM has not yet made public. ITEM will notify its distributors when it brings new products to market on its own initiative, thus allowing distributors to place orders in small quantities.
The following is the latest price list based upon manufacturing information from Nevoton®, showing the estimated retail price of these products:
A = available on demand
M = minimum order required, to be determined
T = not available, being tested by Russian Ministry of Health prior to manufacture
| NEVOTON® Product | Suggested Retail Price | Status |
| Biocorrector™ MK-37.2 LUX | $45.00 | A |
| Biocorrector™ Basic | $35.00 | A, M |
| Biocorrector™ Drink Coaster PIM™ | $11.33 | A |
| Kryton Anti-Radiation Booster™ | $55.00 | A |
| Anti-FON™ Booster | $50.00 | A |
| Photom™ Infrared Light Therapy | $75.00 | T, M |
As ITEM’s distributors grow, ITEM will use the wholesale funds to expand its Nevoton® line, making additional devices available to all distributors on demand, with no minimum orders. Further opportunities for expansion exist from ITEM’s research and development of its own products and technologies. As such products become ready for marketing, ITEM will be able to share them with its distributors under a similar Distributor Pricing Structure as for the Nevoton® products.
New or existing Nevoton® distributors can go to the Nevoton® Order Page to add products to their Shopping Cart on ITEM’s secure server. If you are just starting as a distributor, you must order a minimum of 10 units of the Biocorrector™, Kryton™ or Anti-FON™ products (combinations of these products are acceptable), at a 30% discount, and ITEM will ship from our in-stock supply. You can order as many units as you wish and you will receive the discounts described above for bulk orders.
For the Biocorrector™ Basic, Drink Coaster PIM™, and Photom Infrared Light Therapy pen, a minimum quantity of 1,000 units is necessary based on manufacturer requirements (contact ITEM to place order for these products).
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