Monday, February 28, 2011

Amway Products Have Superior Quality?

Check out this excerpt from the USA Today! Look at what Consumer reports says about some Amway products! Consumer reports is very credible!

http://www.usatoday.com/money/industries/retail/2011-02-07-multilevelmarketing03_CV_N.htm

"The problem so many have is their prices aren't competitive in the real world," says Lou Abbott, who works in multilevel marketing and owns the industry site MLM-TheWholeTruth.com.

When it comes to detergent, Consumer Reports program manager Pat Slaven agrees. She did blind testing of detergents last year and ranked versions of Amway's Legacy of Clean detergents ninth and 18th of 20 detergents tested. She recommends against buying them because consumers can "go to the grocery store and get something that performs a whole lot better for a whole lot less money." The highly concentrated Amway brands cost 23 cents and 28 cents a load, respectively. Five of the eight recommended brands cost less.

A 31-day supply of Amway's Nutrilite Double X multivitamins is $75. Supplement retailer GNC's most comparable product, Ultra Mega Green multivitamins, cost $40 for a 60-day supply.

Amway North American managing director Steve Lieberman says, "The quality of our products (is) reflected in our pricing."

Roland Whitsell, a former business professor who spent 40 years researching and teaching the pitfalls of multilevel marketing, says it's little surprise Amway's big growth is now outside of the U.S. He says the "direct selling" in multilevel marketing is needed in countries with "primitive distribution systems and limited choices in retail stores," but its potential is "seriously limited" here.

10 comments:

John said...

The quality argument is common, and a necessary consequence of non-competitive product pricing. In other words, the products have to be over-priced, because the distribution system is inefficient, but in order to defend their pricing, one must argue they are much greater quality. This is the reason MLM's in general have sold products with difficult to verify claims and difficult to compare quality. It's easier to dupe distributor/customers (one and the same) into spending their hard earned money on them. I made a somewhat related post wrt a different pyramid scheme on my blog today.

Joecool said...

It's more of a self justification than an argument. The consumers quite clearly understand this which is why WalMart sales make Amway's look like a dwarf.

Anim said...

why they have to compare it with double X? why not compare with Daily? isn't it like compare a ferrari with china made car Cheri?

sorry.i'm not english native speaker. my english not good ;)

Patrick Yau said...

@Anim "A 31-day supply of Amway's Nutrilite Double X multivitamins is $75. Supplement retailer GNC's *most comparable product*, Ultra Mega Green multivitamins, cost $40 for a 60-day supply."

Read carefully again the quote was cited in: http://www.usatoday.com/money/industries/retail/2011-02-07-multilevelmarketing03_CV_N.htm

This article, I will point this out to upline sponsor to confuse them. I am sure they will have nothing to say about it.



@Joecool Thanks for the heads up. The formatting (layout) of this blog needs to be readjusted. The popular posts need to follow the stat counter instead of running both of them in parallel. The setting to adjust this can be found at Design section of the blog control, click template designer, click layout and choose the layout setting that have only one column at right side. Then, click apply to blog. Then go to the design page and correct the position of the stat counter and popular posts.

----
So my another upline thinks that they can earn PVs and BVs by going to bestbuy. They bought the JVC GZ-MS110 camcorder for $240 a month ago. Even right now, there is a $40 gap. There is no way the PV/BV will earn them back the $40 gap in the Amway check.

Axiom by the geeks: Bestbuy is always a ripoff. These sodomized ripoff dreams never end if you stick with Bestbuy.

$159
http://www.amazon.com/JVC-GZ-MS110-Everio-Memory-Camcorder/dp/B003AFQEMA

$199
http://www.bestbuy.com/site/JVC+-+Everio+Digital+Camcorder+with+2.7%22+Color+LCD+Monitor+-+Black/9731174.p;jsessionid=F01A6BB4A36E102FE0D06045C9C77056.bbolsp-app02-07?id=1218162687660&skuId=9731174&st=JVC+GZ-MS110&cp=1&lp=1

$99
http://www.newegg.com/Product/Product.aspx?Item=N82E16830145184&Tpk=GZMS110BUS

DADA!!
Newegg.com - Recertified: JVC Everio GZ-MS110 Black 39X Optical Zoom Camcorder

New not refurb $110
http://www.bhphotovideo.com/c/product/671779-REG/JVC_GZMS110BUS_GZ_MS110_Everio_S_Flash.html

$240 Bestbuy vs. $110 bhphoto

My upline was having a very bad judgement here. PV does not get them much money. There is a $130 gap there. Consider my upline is at 2500PV level, she is definitely losing money by buying from Bestbuy through her Amway IBOship.

Anonymous said...

I dont think they need to be cheapest as the market share they aim for is small. They have an advantage if delivered to doorstep compared to going to a store and carrying products home. This is a convenience value which can be a good argument for what are small ticket items

Leoson said...

Hey Patrick,

I am not an Amway official but my friend has brought the topic up and I am doing some thinking about it.

Amway partners with other companies and this can benefit an IBO (Independent Amway Business Owner). But when joining Amway, you start off as a business owner, selling Amway products. Partner stores are not your main source of income, the Amway products are. But you do know that the more PV you have, the bigger your performance bonus will be. So, there is a benefit from shopping from Amway partner stores.

If you were to go to Bestbuy and buy a camera, you usually get it at full retail price. However, as a member of Amway, the money you spend goes to your PV and thus increases your performance bonus. So, you make a certain amount of money by shopping for yourself as an Amway member rather than an ordinary consumer.

Anonymous said...

Yes the PV gets added to your total PV. However, it's 10 pv. Be realistic, you need 7500 to hit the top of the bonus scale.

Nobody does business without a benefit. Best Buy wants you to buy through Amway so you avoid the discount websites that have lower prices.

Best Buy:
4.17% PV / 10% BV
(Most Amway signature products are around 30% PV / 95% BV)

$240 camera
10.008 PV / 24 BV

Even at the top of the bonus scale, you earn (24BV * 25% = $6) $6 back on that purchase. Patrick has listed several places where there is much more savings than $6. In fact, if you saved $130 like he suggested, take out the $6 income, and you're left with a savings of $124.
At the top of the bonus scale this is 496 bv worth of profit (496bv * 25% = $124).
So you would need to sell 496 bv worth of customer or downline product to account for the price difference. (Roughly $4960 through Best Buy, or $500 through Amway.)

What if you were only at the 18% level, which requires 2500 pv or only 1/3 of the way to the top?
(24BV * 18% = $4.32) $4.32 "income" from your $240 purchase
You essentially save ($130 - $4.32) = $125.68 by going to bhphoto.
(698.22bv * 18% = $125.68) So you need 698 bv worth of sales to account for the price difference of going through Best Buy, roughly $6980 of sales through Best Buy, or $700 through Amway.

Remember these figures are just the difference in savings by going to bhphoto, a cheaper store, and your "earnings" by going through Amway.

When you buy product yourself and make an "income" you are basically saying you are making an income off a payment. You will never "make money" by buying something.

thomas_hoe said...

This discussion for Singapore or US?

Anonymous said...

Amway products are the best of the best hands down.

Anonymous said...

For Bulgaria.