As is often the case, the idea for this article came from a reader. I was asked if I thought she should finance the purchase of an Enagic K8 or buy a less expensive alkaline water ionizer.
Enagic Financing Options:
The reader inquiry about Enagic financing options left me wondering if Enagic was offering zero interest financing. A quick search on the internet led me to the following video on YouTube featuring Bob Hilke Jr (Enagic 6A Distributor ID: 6161802): https://www.youtube.com/embed/HgGGl2LKU8g.
In the video, Bob shares his conviction that Kangen machines are the best money can buy and he expressed his belief that it is better to finance a Kangen machine over time rather than to “compromise” on what he clearly believes are inferior alternative products. In the video, Bob directs viewers to an Enagic financing webpage http://finance-kangen-water.com/ which clearly indicates that Enagic offers zero interest financing. The video also directs us to a list of Enagic financing programs for its 16 products. I have illustrated two of the financing programs below (for the SD501 and the SD501 Platinum): https://www.dropbox.com/sh/m1nez9ej3z5hcq6/AACa8myFMY8NLfOnU9nTErGJa/Payment%20Plans?dl=0
As you can see from the tables above, Enagic charges a one-time fee of $10 per monthly installment (a reasonable administrative fee) plus very small shipping free as well as a deposit up front. The sum of the ongoing installments equal the Selling Price.
Taking A Closer Look At Enagic’s Financing Programs
As I clicked on the various links for Enagic’s financing packages, it occurred to me that Enagic has given the world a peak at what the Kangen machines actually cost.
Enagic is not charging any interest as the cost of the product is split equally between the various payment options without altering the price of the unit. You can see this in the tables above as the Total Installments + Deposit = Selling Price.
The shipping fee is so small ($18 for the SD501) that it can’t possibly cover the real cost of shipping (units have to be shipped from Japan to California, fees have to be paid to clear customs, more fees must be paid for dock and handling charges, then the units have to be transported to the Enagic warehouse, and finally, the units have to be shipped to customers located across the USA). Nobody can do all of that for $18 which means some of the real cost of shipping is getting buried in the cost of the unit.
Since Enagic is doing it’s own financing, and it is not charging interest, you have to wonder if Enagic would be dumb enough to risk shipping a unit for less than its cost. One thing Enagic has proven over the years is that the company is not stupid.
One could make an argument that Enagic is making so much profit on the selling price of it’s units that the company doesn’t need to charge “normal” interest rates (10% to 20% or more) associated with consumer financing plans. Howevever, that doesn’t make sense as customers that pay up front don’t get a discount. Somebody has to bear the risk of consumer product financing as it is very difficult and costly to retrieve products from delinquent payers. A court order and a “writ of seizure” must be obtained and then a bailiff has to find the product. Even if the product is recovered, what does it cost to retrieve the product and what kind of shape will the product be in once it has been retrieved? One logical way for Enagic to guarantee that it doesn’t take a “financial hit” for a sale under it’s financing plan is to recover the full cost of the item with a deposit fee.
That got me thinking, which in turn got me looking at the Deposit requirements under Enagic’s zero interest financing plan.
Enagic Deposit Charges:
The following is a list of Deposit fees that Enagic charges for financing each of its products:
JRII and DXII: $310
SD501 Platinum: $680
One fact really jumps out when when you look at the deposit requirements in the tables above. The SD501 Platinum is the exact same machine as the SD501, but it has a different external “skin” for which Enagic charges a premium of $300. Notice that Enagic requires exactly $300 more as a deposit for the SD501 Platinum ($680) than for the SD501 ($380). What does that tell you? It certainly provides a strong clue that Enagic recovers the unit costs “up-front” in the form of a deposit when it offers zero interest financing.
Need more proof?
Enagic customers can purchase a Kangen machine under the Enagic financing plan without providing any financial information or credit history. Nobody does that. The only logical conclusion is that Enagic recovers all of its costs in the form of a Deposit.
Need even more proof?
When a company exports a product to another country (for example, Japan exports Enagic machines to the USA), the company that sells the product that is being exported must create and include a Commercial Invoice for that product with the shipment. The government of the country that is receiving the goods requires a Commercial Invoice so that it can charge appropriate duties and taxes.
Enagic has created a lot of enemies over the years. One of those enemies sent me a copy of a Commercial Invoice for Enagic SD501 machines a few years ago. When Enagic threatened me with a lawsuit a couple of years ago for an article that I wrote, the head of their legal department was not too happy when I suggested that I had seen a copy of a Commercial Invoice for SD501 machines and would demand that Enagic disclose the cost of their machines during “discoveries”.
Let’s just say that the “Deposit” requirements for each machine that Enagic finances are not a surprise to me. In fact, my guess is that Enagic’s Deposit requirement also includes the significant subsidy that the company eats on the shipping cost that it charges its customers.
And still more proof?
I have witnessed a few examples of Enagic “near-cost” pricing on brand new Enagic SD501 units on the website www.alibaba.com over the years. On each occasion, the offerings were quickly removed as Enagic has eyes everywhere and evidence of “cost pricing” is not good for business.
When an Enagic dealer tells you that Enagic machines are the best in the industry and you have to pay for the best, I hope you keep this article in mind. Enagic products are not the best. In fact, they are not even close to being the best. The Hydrogen infusion Machines (HIM’s) are massively superior to Enagic machines when it comes to providing consistently high levels of therapeutic concentrations of dissolved hydrogen gas across a wide spectrum of source water conditions. All of the marketing power behind the Enagic network won’t change the scientific evidence.
Before buying a Kangen machine, or any other alkaline water ionizer, you might want to check out the HIM2 at www.tryh2.brilliantz.com. It produces much higher concentrations of dissolved hydrogen gas (across a wide spectrum of source water conditions) than any other alkaline water ionizer. The HIM2 doesn’t need to be deep-cleaned weekly to remain effective which is necessary for alkaline water ionizers. The fact that the HIM2 ($2,000) costs 60% less than the Enagic K8 makes the decision a no-brainer. There are other new entries into the HIM market, but as of the writing of this article, they have not put the time and effort into making their units run efficiently.