Moving Product

Tuesday, September 04, 2007  by Ray Alexander
Category: Quixtar Strategy, Products, Quixtar Philosophy

It probably goes without saying that Quixtar offers a business opportunity that allows people to have a business of their own based on product sales and sharing the opportunity with others who will do the same. As some have said that Quixtar's products can be difficult to sell, I want to talk a minute to talk about product sales, and what Quixtar is doing to make product sales easier than ever before. This is a good follow-up to previous discussions about the target audience (Not Wal-Mart And Never Want To Be, 8/31).

 

Quixtar IBOs are obviously adept at selling product, as Quixtar is one of the largest retailers on the web. Quixtar Independent Business Owners (IBOs) generated more than   $1.118 billion in product sales at www.quixtar.com  in 2006, the fourth consecutive year in which the company surpassed the billion-dollar mark. Quixtar also has been ranked for the past four years by Internet Retailer  magazine as the top online retailer in the Health & Beauty (H&B) category, placing 22 ^nd  overall based on web-generated sales.

 

While Quixtar has experienced great success in selling product, the premium pricing for some products can make it a challenge. Nutrilite® Double X® , for example, is a top-quality multivitamin. It requires some education to help a customer understand its benefits and why it's worth a higher price than a cheaper multivitamin they might be able to pick up at their corner drug store.

 

The Artistry® Time Defiance Skin Care System, for another example, is not intended to compete with other skin care brands on the basis of the lowest price. It's designed to appeal to those who are knowledgeable about skin care and looking to make an investment in their skin. It may take time and education to help a customer make the decision to purchase.

 

While we stand behind products that require a higher level of knowledge and commitment on the part of the customer, Quixtar is committed to making it easier than ever for IBOs to sell products. We are focusing efforts on Health, Skin Care, and Gift as areas of retail specialization. We're working to provide everything an IBO needs to sell these products. This starts with products consumers want to buy, includes merchandising resources and training that help IBOs attract customers, and is supported with integrated consumer programs, events, and advertising.

 

To support these retailing initiatives, in 2007 we are launching a number of new products and newly packaged and priced versions of existing products, such as:

·         The new Nutrilite Daily Multivitamin 90-day supply (as opposed to the 180-day supply). At just 12.5 cents a day, customers can easily compare Daily to popular competitors, while still getting the natural plant benefits that set Nutrilite apart.

·         The new Nutrilite ClearGuard™. Helps balance histamine production, and a clinical study found it helped to support clear noses in three days or less. Rhodiola and Carb Blocker in new Blister Pack packaging to make it easier to start a selling conversation.

·         Sampler packs for ClearGuard and Protein Bars to help IBOs attract potential customers with attention-grabbing products that are highly experiential.

·         Inexpensive Artistry lip and hand products that support "Purse-to-Purse" selling.  

·         Simply Nutrilite, an integrated line of natural, nutrient-rich snacks and drinks, launched on September 1, 2007.

·         Artistry Essentials, a new simplified line of skin care and cosmetics launching in November 2007. The products are specifically designed to meet the needs of today's woman who wants to care for her skin and enhance her natural beauty, yet doesn't have the time, expertise or patience for overly complex products and routines.

 

In addition to supporting IBO retailing efforts with product initiatives and merchandising support, we are also rewarding and encourage retail sales like never before. New IBOs can receive free shipping on orders of selected products over $75 and the opportunity to earn $50 each month for their first full three months in the business. The $50 is earned by generating 150 PV each month, including at least 50 PV from retail sales to non-IBOs. Additionally, to reinforce the value of customer sales Quixtar is offering a PV uplift and free shipping for non-IBO customer orders of selected products over $75.

 

I think it is obvious ... there is a lot happening within Quixtar, and selling product is getting easier every day.

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Comments

A Kline said:
September 4, 2007 3:10 PM | #

Thank you Q for all you are doing to help every IBO build a profitable and balanced business.

jthompson said:
September 4, 2007 3:13 PM | #

This is great news!

The business opportunity from Quixtar keeps getting better and better.  The criticism from TEAM ibos or anyone else... only help Quixtar get better faster.

Toxic Tide, Artificial vitamin Centrum, cheap cosmetics, Aspartame filled Red Bull, etc....  are not worthy of being in my cabinets.  If TEAM wants to sell crap, they can go ahead.  I would rather buy and use stuff that works.

Jeffrey said:
September 4, 2007 4:14 PM | #

Ray, this is great, but you still have to get rid of the case lots for the drinks. I'm not going to buy 12 of the new Simply Nurtilite drinks to see if I like it. Please tell me when you are going to break these cases up. A date, please. Not just these drinks, all of them.

jthompson said:
September 4, 2007 4:29 PM | #

Jeffrey, Quixtar offers a 180 day return policy WITH FREE RETURN SHIPPING. So just get the case, and return it if you don't like it, ok!

Jonathan James Collier said:
September 4, 2007 4:39 PM | #

Jeffrey,

Quixtar has great customer service for both IBOs and there customers. One of the truths to that statement is the Satisfaction Guarantee! If you ordered a case of the new drinks and didn't like the taste, Quixtar will take care of the ship back and the cost of the product and tax! That is in essence like having a free try on everything Quixtar. Coke and Pepsi sell most of there drinks in 12 packs and 24 packs.

Thanks for all the new stuff Quixtar, my customers are loving it. They can't wait till I give them some samples!

ibofightback said:
September 4, 2007 4:45 PM | #

Jeffrey - if you don't like 'em, send em back.

This is kind of the idea of the business model. An IBO gives you them to test. It's not like they cost a fortune.

tman said:
September 4, 2007 5:29 PM | #

Jeffrey

You may want to look at the Simply Nutrilite section on Quixtar. There is going to be a sampling kit available. And if you don't like what you try you can surely send it back. Or better yet you can use the remainder of the case to sample to customers. It is a tax right off if you do that you know. Come on man, do you own your own business or are you a customer only. Bevause I would be glad to sell you individual cans. :)

A Kline said:
September 4, 2007 5:51 PM | #

The new Simply Nutrilite line is great. The price, marketing, and packaging rocks. Thank you!

Bidgett said:
September 4, 2007 6:57 PM | #

Hey Jeffrey,

I agree with you that I am hesitant to buy large quantities of things with which I am not familiar.

But here's an idea:

If Quixtar won't take you up on your smaller quantities idea, then use the Quixtar Satisfaction Guarantee.

Buy the drinks. Taste one. If you don't like it, ship the case back, on Quixtar's dime, and call it a day.

Why shouldn't the 180-day-money-back-guarantee also apply to IBOs?

One of two things will happen if all IBOs did this:

1) We all love the products and we would promote them and we would consume/sell more of them. This would mean more $$ for everyone.

OR

2) We don't like the products, we ship them back, and Quixtar will know that their product isn't cutting it. And we write the reason for the return on the return slip. So Quixtar will be given valuable feedback.

I have not done this. But since they are not offering a "sample pack" of all the new SimplyNutrilite products, I just may take myself up on my own suggestion!

:)

Concerned IBO said:
September 4, 2007 7:13 PM | #

I think there’s a typo in your second paragraph.  You say Quixtar IBOs are ADEPT at selling products. Before I begin, may I respectfully say that I am disappointed with both side of this Quixtar – TEAM nonsense.  I figured that you would find a way to work things out with them, and now the bad PR is hurting my business.  I guess you expected collateral damage though, and you are able to handle it with less impact on your personal monthly income than those of us in the field.

However, when I calculate your stated number of 3.4% retail sales of that 1.118 billion, I get $38,012,000.  I have been an IBO for more than a few years and I have to tell you that over 80% of my sales are at my WHOLESALE prices.  Why?  If I didn’t sell at my price, I would not get the sale at all. So let’s say the average IBO “retails” better than me, and on average, 25% of sales are at retail prices.  25% of $38,012,000 is $9,503,000.  9.5 million of 1.18 billion is hardly what I would call “adept”.  I think you must have meant “inept”.  Less than 1% is NOT adept.  

So one of two things: Either Quixtar is one of the most unintelligent companies in the world, or you are not being honest with us.  I want us both to win in the marketplace!  

My numbers may be wrong, but you have the real numbers. Why don’t you share them with us so we can do a better job representing you?  Do you really expect us to buy this kind of spin?  I am so tired of explaining “cost per use” and trying to focus my prospective customers on quality. And apparently, so are many, many others.  Why can’t we have both?  There are a lot of companies out there who have been able to deliver both. Why can’t we?

Peter M Burr MD said:
September 4, 2007 7:43 PM | #

Jeffrey...Chill Dude! This is a business for crying out loud...if you can't invest in case lots of drinks, you need to rethink your commitment and priorities!  I can just see the UPS guy pitching the onezies!

Ray, I'm so excited, I just can't hide it...come on, come on, come on baby I like it!!!!

Michel said:
September 4, 2007 9:27 PM | #

Hi ,

One of my new customer try to make an order of more than 75 $ and still have shipping fees ! The explanation i got from Q* was that only new customers ( registered after the first september can benefit of no shipping fees ! Is it really like that !

Please give me a come back , thanks !

Peter M Burr MD said:
September 4, 2007 10:17 PM | #

Whoa, Michel...

I hope we get the right answer to your question....

rdknyvr said:
September 4, 2007 10:51 PM | #

Concerned IBO, I think there is a significant and valid difference between the phrases "retail sales" and selling at "retail price." I admit that I don't have the guts to sell Double X at suggested retail price but I do make retail sales with it. It's a small but important point. I'm with you on some of the pricing -- even as "premium" category products I would wish that certain ones were a little lower.

However, I note you repeating the possible misconstruction (not blaming you) that only 3.4% of total sales are retail sales. I know where that comes from -- out of Chuck Goetschel's "Goldilocks" letter of a couple weeks ago. Until Sept. 1, most of my sales to retail Customers have been direct, in the sense that I bulked them in with my own personal consumption Ditto order to get lower shipping costs, and I would personally deliver the goods. Did Quixtar know the actual volume I was selling to retail customers? I doubt it, as I didn't have to declare the actual revenue volume I was getting directly to them, only that I was meeting the customer sales requirement.

As of Sept. 1, I've been starting to put these people on direct fulfilment with the free shipping (Michel, it's going through for me), and that data is now likely being captured by the system. But were all the personal retail customer sales before Sept. 1 included in the 3.4% stat? Quite possibly not.

My guess going forward is that the retail sales number (to non-IBOs) will accelerate drastically, not least because of all the new "retail competitive" products that are starting to come out.

Lets watch the legal situation unfold and resolve, and see how that 3.4% stat was developed and whether the question above is clarified, and also how the retail sales percentage is likely to grow with the intro of Quixtar U, the incentives for retail sales, etc.

Jeffrey said:
September 4, 2007 11:12 PM | #

Fine, I'll order it, but if I don't like it, I'm not going to send it back.  I still don't think it would hurt to offer the stuff in 2 or 4-packs. The reason that Coke and Pepsi can sell in 12 and 24 packs if that people are also able to buy one can at a time so they know what it tastes like. Selling in case lots killed off the Active 8 Fruit Squeeze line, the Harvest 12 line (besides it was waaaaaaaaaay overpriced), and in the home care line, I read the obituary of the SA8 Tablets today. Here's the problem with case lot ordering: you need about 15 different things, but 5 or 6 of those things are in case lots and you are on a limited budget. Yes, some of us are on limited budgets temorarily until we get the Platinum thing done. If you put the 5 things on and you're already at $100, guess what? Stuff starts to come off the order, probably the case lot stuff. Ray, how much money does the company make on stuff that sits in the warehouse because the case quantity is inconvenient so people don't order it? I'll get off this kick when 1 of 2 things happen: Tex gets off the tool profit kick, or the problem is fixed. You see, if you make stuff available in a 2 or 4 pack and people try it, many will opt up for the case lot. Try it, marketing department guys and gals. I think you'll be surprised. If you try it and I'm wrong, I'll drive up to Ada so you can kick me in the tu-tu.

Josh said:
September 4, 2007 11:31 PM | #

I hope Michel is wrong with this!

Either way, register them as a new customer.  Or someone else in the family.

This rule should NOT be for new customers.  If anything it should only be for OLD customers.  Those that have proven their loyalty to our products and business.  

Can we have an answer to this question???

Concerned said:
September 5, 2007 12:48 AM | #

Mr. Alexander,

Here's my question: on the Quixtar Website in the newly created section for Simply Nutrilite, it lists that:

"A massive ad campaign begins this fall, to reach large numbers of consumers and to offer them a single free sample of the new Simply Nutrilite food bars. Every radio, TV, and web ad directs these potential customers to SimplyNutrilite.com. And as we fulfill their sample request, we’ll collect contact information. When any customer buys products from the site, the profits from the sale are distributed to IBOs, according to the terms of the Leads Program.*"

"Placing ads in national magazines like O! The Oprah Magazine and People, and running them on Yahoo and Google is expensive, and so is mailing out samples, one at a time. But every one of our executives is convinced that this is the right corporate investment to make, and that this is the right time to do it."

"So, while you’re working hard to find and identify new customers, we’re working equally hard to interest them, excite them about our products, and nudge them toward you."

Wouldn't it make more sense that the advertising will point the consumer to find an IBO so they can use the IBO # when they request their free sample so that the IBO could follow up with them as well as sell them anything else?  Is Corporate trying to take the place of the IBO? I've also noticed this on the back of the Gift Card Albums. It says, to find out about ordering and pricing, visit Quixtar.com instead of pointing to the IBO or allowing the IBO to affix their label to the album so that sales are diverted to them. What's up with that?

DRO said:
September 5, 2007 1:32 AM | #

Michel,

Make sure the customer's address is not the same as the IBOs address (basic address regardless of a different shipping address which could be that of an IBO) and the products qualify at $75 plus (not from Store for More). I've found both old registered customers (prior to Sept. 1) and new registered customers whose address used to register is not the same as an registered IBOs address works just fine for the Free Shipping and the IBO 20%. uplift.

Nick Kobelja said:
September 5, 2007 10:38 AM | #

Concerning Concerned concern,

What IBO gets the referral of the customer?  Will it be the closest PD?  The closest Diamond?  The closest IBO?

Martina said:
September 5, 2007 11:03 AM | #

Concerned:

You are on the right track. Quixtar is changing it's name to Amway because Amway products have better recognition.  Not Amway the business opportunity, but Amway products.  The company has changed it's focus from helping people develop their own businesses (by selling products and developing teams that sell products), to just selling products.  

You are absolutely correct in that the eventual goal is to eliminate the IBOs completely.  Most IBOs will quit when the dust settles over this Team thing, and the remaining IBOs are happy to be sales reps anyway, so no problem.

BTW, this Team thing came at the perfect time for Q, didn't it?  Now Q can say they have to change because of all the bad things Team IBOs were doing. (Never mind that the change has been in the works for quite some time.)

MIIA said:
September 5, 2007 12:16 PM | #

Great stuff, but we need to take another look at the possibility of displaying/retailing products at vendor shows that are used specifically by MLM companies to sell products.  If we can move product at these events, we will be able to get our name out in front of more customers.   When people fall in love with your exclusive brand products, it’s easier to pitch the business.

Michel, I think that you have or were given inaccurate data.  I’ve had two customer orders already this month and both of them received free shipping.  One is a new customer this month and the other has been a customer for several years.    

rdknyvr said:
September 5, 2007 2:35 PM | #

Michel, there's an answer to your question over on the IBOAI Blog: http://www.iboblog.org/my_weblog/2007/08/more-about-prod.html#comments

Perhaps call back to Quixtar Canada Customer Service to confirm and clarify. If the issue persists, post to the Moderator at the IBOAI Blog and they'll follow up for you. :)  It's called TEAM-work!!! LOL

ibofightback said:
September 5, 2007 8:31 PM | #

Jeffrey - you said "The reason that Coke and Pepsi can sell in 12 and 24 packs if that people are also able to buy one can at a time so they know what it tastes like."

Same thing applies here. I know of no rule saying a Q* IBO can't sell one can at a time of a Simply Nutrilite drink.

Your comments seem to indicate your a customer, not an IBO? I suggest you speak to your servicing IBO about getting a single can to try.

If you're an IBO - well, no offence, but you're not thinking much like a business owner. If you've registered as an IBO/Member for direct shipping and price breaks, then again I suggest you talk to the active IBO that sponsored you. I'm sure they'll be more than happy to give you a test can - probably for free!

Katie Pearsall said:
September 6, 2007 10:49 AM | #

Editor's note:

In response to a few questions about customer shipping costs -- free shipping is available to all customers who place qualified orders ($75 or more in eligible products), regardless of when they registered.

To Concerned -- Going to www.quixtar.com is the easiest way for most potential customers to find an IBO. Going to the site allows you to request that an IBO contact you or at least for your purchases to be credited to an IBO. So asking customers to visit www.quixtar.com in no way cuts IBOs out and in fact helps them.

Mike J. said:
September 6, 2007 1:29 PM | #

I am very excited and fired up about the changes at Quixtar/Amway.  As and IBO, I got into business to market the quality products.  However, as time went on, I found myself selling tapes, cd's, video tapes, open meetings, team meetings, seminar and rallies, and functions/conferences more that selling products.  Quixtar/Amway now provides enough Knowledge for new and old IBO's to build profitable business without having to promote business tools as well.  

Maureen said:
September 6, 2007 4:10 PM | #

On a totally different note...

Here's my question:

(I've emailed the corporation several times with this request in which they tell me they will "log it".  I figure I could share it with you and see what kind or response I could get this way.)

I just got the new Personal Accents catalog... love it!  I thought last years selection was the best... but this line takes it.  However, I'm still a little frustrated with the way we are supposed to sell this great line of jewelry and fragrances.  

Why:

*Don't we have a personalized site with just these items?  (or have the ability to include these items in our beauty site?)

*Do we have to send prospective/active clients to the huge Quixtar site to try and figure out where the line of jewelry and fragrances are?

*Don't we have separate order forms for just the Personal Accents items?  

*Do we have to use the order forms that have the big "Quixtar" on the top?

I appreciate the new sales kits... they are really attractive and easy to use for displays and travel.  I think it's all priced right (much better than some of the other parties I've been to) and the free shipping is awesome - however we need to look at the basics.  We have business cards and invites available to us with the "Personal Accents" name on it... and they are beautiful.  But anyone who's been to a jewelry party (or any party for that fact) knows that the customers are not:  (A) writing out their sku #'s, descriptions and prices out on a blank order form and (B) filling out an order form that has a completely different company name on the top.  It just seems so confusing and unprofessional.  

There's nothing available online to talk about how to have a jewelry party... which may seem like the easiest thing in the world, because there's not much involved.  But how about a separate starter kit?  Or maybe with one of the sales kit, you receive marketing ideas, catalogs, flyers, hostess benefit flyers, how to set up a "Jewelry of the Month Club" by utilizing Ditto, how to do a "book party", etc.  These are all things that are happening all around us all the time with other companies.  

For that new girl who isn't much into skin care, cosmetics, vitamins, etc... but knows that their friends and family would buy some jewelry, wouldn't it be great to have a simple starter kit and website for them to use and promote?  Why are we leaving it up to their imagination on how to do this?  I understand that the upline sponsor is responsible for training and helping them get started, etc... which I am heavily into, but gosh, it would be much more consistant and easier to have them just purchase a kit... and we together as a team go from there?    

It just seems like we have really great products and really great intentions... but sometimes seems hard to sell.  

Josh said:
September 6, 2007 4:50 PM | #

Mike J,

I do agree with you in part to your last statement.  I think Q/A is doing a great job is overemphasizing the need for retail customers, and I believe they are doing it in the right way, through incentives.

Also understand that building a balanced business still means you want to find others who want the opportunity to make money.  That is where training systems are beneficial.  Perhaps not to the extreme that you mention, but they do help.  They train people, through experiences, how to have a business mentality, tough skin, and build relationships not IBOships.  Again that is my personal opinion, yours may be different, and I respect that!

rocket said:
September 6, 2007 10:37 PM | #

That's just excellent that Amway/Quixtar is going through so much effort to make things retailable.

Too bad it takes a very public 3.4% to make that happen.

If I understand correctly, in the case of Double X, you aren't lowering the price, just lowering the amount people can buy at a time, 180 to 90.

That's your solution?

I can't imagine why a multi million dollar corporation would think that will solve the problems.

Bravo.

jthompson said:
September 7, 2007 10:27 AM | #

3.4%

remember - TEAM farted and blamed it on Quixtar before anyone could smell it.

1.  You can't believe anything for certain as far as the new myths from freetheibo site

2.  take TEAMs words as truth.  Go to their site and you will fine just about every single Team ibo said they "cannot retail" and did zero retail sales.  TEAM said they have 40% of Quixtar business (also bogus) - the that means that the retail sales % is really about 7% for non-Team ibos.

rocket, the 180 to 90 is for "Daily", not doubleX.

I would pay more for a sugar pill (placebo effect) than for centrum.  The body can not use dead lifeless man-made chemical vitamins/minerals.  The body is made out of the dirt and food that grows from the dirt brings life to the body - fruits, veggies, seed bearing food... thus Double X.  Organic Farms.

www.nutrilite.com and read up.

:)

Bridgett said:
September 7, 2007 1:42 PM | #

Rocket (Sept 6, 10:37 PM)

I think you are talking about Nutrilite's Daily, not Double X.

The Double X is the the premium, ALL FOOD, supplement.

The Daily is the one that's 12.5 cents a day and is the one we compare to Centrum, et al.

The Corp. is now offering a 90 tablet bottle (3 month supply).

Since you are not an IBO and blog about horrible this business is on your own site, I know that it can be kind of tough to get accurate information.

So I appreciate you coming over to Opportunity Zone and getting informed. Why you'd want to, since you are not an IBO is beyond me...but, we all have our hobbies, don't we.

Batman must have his Joker, I suppose. :)

rocket said:
September 7, 2007 4:30 PM | #

Pardon me, Amway is halving the DAILY supplement's quantity in order to lower the price, as opposed to, you know, lowering the price.

In regards to accurate information, well, I suppose that's for each person to judge for themselves.  I'm not sure I would consider the corporation to be impartial and fair.

jthompson, sounds like you're sold on it!  Good for you!  As far as health tips, I'll be taking my health tips from someone who's not involved in the making of the supplements to avoid, you know, a conflict of interest.  I already take daily supplements for a fraction of the cost.  It's easy to get an objective opinion when you aren't required to ignore important factors.

I don't think I'm Batman.  Consider me the Hooded Fang.  

I think I've found the Intrepid Shapiro and Fearless O'Toole.

Beryl Nichols said:
September 7, 2007 6:22 PM | #

Rocket,

I would say that jthompson is "sold on it".  Because, he has done the research and gotten the important information about the differences.  How do you build belief, if not from getting the facts and making comparisons, by personal use?

Your beliefs seem to come from other peoples opinions, who like you, do not have the facts with which to make an intelligent determination regarding quality or anything else.  The Nutrilite reputation comes from 70 years in the industry, which NO OTHER COMPANY IN THE WORD HAS.  This is where we get our "health tips."  Research, independent studies, science.......and reputation for excellence.

To compare price Jeffrey, an apples to apples scenario must exist.  Find an equal to DoubleX and the debate is on.  But guess what?  There is NO equal to Double X on the market!  Game Over!!!

You should really find a sponsor Rocket.  Don't expect to make much money for years tho, because you are so analytical.  But, that's why we have so much literature.

Personal beliefs are strong, that's why you can't get them from books and the internet.  A little personal use should fix the problem nicely.

GirlPower said:
September 7, 2007 8:28 PM | #

Actually, rocket, they did lower the price of the Daily 180. From $41.60 to $22.60.

Do you take healthtips from your doctor? You do realize he gets paid by the drug companies to push certain meds right? [Editor's Note: Deletion due to mild insult.]

peter said:
September 7, 2007 8:52 PM | #

(NOTE: Specific limited guarantees apply to designated products.) This satisfaction guarantee does not apply to IBO purchases for stock or inventory.

Selected products have their own warranties, as noted on the product pages.

This is straight out of the written guarantee for the CHOICES product lines.

Those 'specific limited guarantees' says that you can't return anything that is consumable or perishable i.e. drinks, bars, snacks, etc.

Basically anything from the CHOICES catalog is not returnable. I have received an email from customer support that states this.

So if you don't like a products your actually [out of luck (edit)]. Because chances are that if you don't like it, no body else will.

And you'll either have to stomach it, or throw it away.

rocket said:
September 7, 2007 9:30 PM | #

Actually, I take health tips from a personal trainer who is provided by my company, and who has nothing to gain from promoting a certain product over another.  As an IBO you have something to gain.  "Independant" studies by the company creating the product are anything but independant.  Do you find that difficult to understand?

My trainer is aware of what Nutrilite has to offer, and agrees that it's a good product...BUT overpriced, and there are other items available which are comparable, in his opinion.  This is what he does for a living.  He doesn't get "freebies" for promoting anything, nor incentives to promote.  He has a degree in sports medicine and nutrition.  That's why he was hired, and he is responsible for the well being of all employees.  I'll listen to him, unless you can speak more intelligently on the topic than he?

Girl Power, based on what you are saying, it now costs $22.60 for a 90 day supply, as opposed to $41.60 for a 180 day supply.

Do some math.  Your price went up.  You realize the corp. makes money by you pushing certain items, right?  I won't insult you for the moderator to delete, you've stated enough that I don't need to belittle you.  Well Done.

GirlPower said:
September 7, 2007 11:25 PM | #

You're incorrect again, rocket. The Daily 90 is only $11.30. The 180 is $22.60. Have you actually been to the Quixtar website? Also, I didn't insult you... and sent a note to the moderator asking how the comment I made (which was about homeopathic "medicine") was considered an insult. Take care!

YankeeIBO said:
September 8, 2007 5:50 AM | #

Rocket, Please take a few minutes and go to the Q* site to look at the multi-vitamins in question. Right now, you are letting everyone know how little you really know, and casting doubt on anything you have to say. With the advent of these corporate blogs, the day when a critic can spout anything without being challenged are over. If you have legitimate gripes based on your own experience, fine--but don't act like you know what you are talking about until you do. BTW--the independent studies ARE independent, by Consumer Labs. Visit the site--the supplements you take have most likely been tested there, as well. Consumer Labs is accepted by the FDA as an independent source, for companies looking for FDA approval. Just one more thing you got wrong.

Bridgett said:
September 8, 2007 10:47 AM | #

Rocket, The Daily (180 tablets), used to cost $41.60 the Daily (180 tablets) now costs $22.60 (SKU A4230) They reduced the price by 45% IN ADDITION Daily is now being offered in 90 tablets for $11.30 (SKU 104174) If you would just look at the Quixtar.com website yourself, you wouldn't be showing your ignorance. You are embarrassing yourself.

Jeffrey said:
September 8, 2007 11:06 AM | #

Nutrilite Daily 180, old prices (Choices Catalog, Spring & Summer '07) $28.75 wholesale, 41.60 retail. New (current) prices on quixtar.com for Nutrilite Daily 180: wholesale $19.35, $22.80 retail. That also goes for the Daily Free 180. That's the only size for the Free. The Daily 90 size was not yet available when the Choices catalog was printed, but it was available from the personal retail sites a few months before it was on quixtar.com. I know that because I had a couple customers ordering it before it was available on the main site.

Beryl Nichols said:
September 8, 2007 11:32 AM | #

At least your advise comes from a person that knows the name Nutrilite, most don't. He realizes it is a good product, but neither of you know how to buy the product or what the actual cost to you would be, other than the suggested retail. And to make an accurate price comparison you have to have an apples to apples product, which he does not have. Price is only an issue in ABSENCE of value. Bye the way, check this out. His degree in nutrition came from some of the research done by that 70 year old company Nutrilite. And finally, your right Rocket, as an IBO I have ALOT to gain. Satisfaction for telling people the truth and helping them get through the "nasty now and now". Hey man, your personal trainer has something to gain. If he does a good job, he gets to keep his job working for the man. What's wrong with that? It is a start. Anybody that you buy from "has something to gain". You buy any product from any store and you "lose the use of your money forever." You get the product only, and the store has your money for themselves. Buy our way and you still have the use of at least some of your money, depending on the product you buy. Then. if you do sell the product, you have more money to invest or whatever you want to do with it. Nothing happens until somebody sells something. That is what makes your world go around Rocket. Good luck.

rosebud said:
September 8, 2007 12:39 PM | #

I just checked and the price on the 90 day supply for the Daily is $11.80 and the Ibo cost is $9.80... I don't know where you are getting your figures, but they are not correct.

Olib said:
September 8, 2007 2:13 PM | #

Rocket, The current retail price of the Daily Multivitamin 90 day supply is $11.30. The 180 day supply is $22.60. You can check that on Quixtar.com without an IBO number. Double X is a unique product. If contains more Phytonutrients than any other product on the market. You have a personal trainer so obviously you are concerned about your health. There is no way to get the equivalent plant food that is contained in Double X. Science does not yet know all of the benefits of plant food. Go to Nutrilite.com and find out more. Traditional science is behind the curve on plant food, I believe the AMA did not recommend a daily multi until 2003? God Bless

Anon IBO said:
September 8, 2007 8:40 PM | #

rocket,

I'd like to see your math.

Extremely basic North American math tells me this:

90 day supply at $22.60 = $.25/per day

180 at $41.60 =  $.23/per day

Please correct me if you think my math is wrong too.

Are you telling me you're balking at a measily $.02 cent increase in cost per day?

C'mon are you that serious?

Let me ask you this as well,

If your "personal trainer" highly recommended Double X and suggested you go on it, what would you have done? Better yet, what if you found out he was also an IBO?

FYI, being a personal trainer myself, yes they do have something to gain by offering products they recommend- It's called a commission. A personal trainer's product isn't just personal training- it's all the other upsells that go along with it- gym memberships- excercise equipment, vitamins, GNC products,aerobics classes, videos, etc.

I would highly recommend nutrilite to my clients over GNC products regardless of the price.

But that's irrelevant and personal preference too ;-)

rocket said:
September 9, 2007 12:32 AM | #

OOPS!

Okay everyone, take your shot, I deserve it.

When Girlpower said that the price of the Daily 180 went from $41.60 to $22.60, I assumed that it was a smaller amount for that drastic a change.  Sometimes I leap before I look.

I should have checked it out, and I did not, and now I look like an idiot.

That is a drastic drop in price, and I must concede to this argument, very sheepishly I might add.

Dammit.  Moderator, please don't bleep that.  I really mean Dammit.

rdknyvr said:
September 9, 2007 12:41 AM | #

Aron, great post, great insight. :)

Bridgett said:
September 9, 2007 4:12 AM | #

EVERYONE THESE ARE THE RETAIL PRICES FOR NUTRILITE DAILY IN THE U.S.A:

90 day supply is $11.30

180 day supply is $22.60

Both work out to be 12.5 cents a tablet

The Daily is 12.5 cents a day

And Rocket, you ask on your blog about building a retail empire to support your family. You don't seem to understand the OTHER MOST AMAZING PART OF THE PLAN, which is the duplication part of it--hence the term MULTI-level marketing.

It's about making the FIRST circle work. "First" implies that there are other circles.

You DON'T have to do a ton of retail. That is the point. You do enough that's worth duplicating over and over and over again--IF supporting your family soley through this biz opportunity is what you (well, not you since you are not an IBO nor do you even understand the Comp Plan, but the generic "you") are looking to do.

Some people just want to make a few hundred bucks retailing. And, yes there are some that DO retail and it's their only source of income, and it's good income. They are professional salespeople and make a lot of cash on product lines like the Ribbon Gift Albums.

But I'd say that I speak for a good chunk of ACTIVE IBOs when I say that what attracted us to the Plan was the duplication part. Multiplicaton versus addition.

Anyone agree or disagree?

rdknyvr said:
September 9, 2007 12:50 PM | #

Ooops, I didn't read closely enough... sorry for mixing up the names Aron and Anon... :)

rdknyvr said:
September 9, 2007 11:21 PM | #

Anon IBO, I posted to you (and anyone else who's interested) on the "Brief Responds to Lawsuit" threadon Personalized Health and your personal trainer business...

Bridgett said:
September 10, 2007 12:32 AM | #

rocket,

Wow. You impress me with your humilty.

Thank you.

Really, thank you.

Aron Gannon said:
September 10, 2007 1:36 PM | #

I've seen many references the 3.4% figure for the percentage of sales that are attributed to non-IBO customers.  Lets assume this is a fact.  Numbers can't lie, right?  However, we can interpret the data in different ways.  One blogger commented that the 3.4% only takes into account registered customer orders and doesn't include all the sales that IBOs make from their own inventories.  Many IBOs bulk customer orders together with their personal orders to get a better price on shipping.  Also, there are a lot of IBOs out there who are really just wholesale customers.  They have no interest in building the business but they like the products, want to get them at wholesale, and appreciate getting cash back on their purchases in the form of a monthly bonus check.  According to Quixtar's definition of an "Active" IBO, the IBO I described above is "Active".  One of the criteria for being "Active" is "received bonus money" sometime during the course of a year.  One of the disclosures that must be printed on materials that we share with prospects is "The Average Monthly Gross Income for 'Active' IBOs was $115 (US) and $181 (Canada)."  This is a fact, but it's also misleading because it includes the wholesale customer IBO.  My parents have been IBOs for several years but they have never shown the plan or sold product and don't intend to.  Last year I asked them if they would consider not renewing as an IBO if I continued to give them the IBO price on their purchases.  They said, "No way!"  They get a bonus check most months and my mom loves shopping at the Alticor surplus store in Ada.  (You have to be an IBO or an Alticor employee to purchase stuff at the surplus store.)  I don't want to deny people from registering an IBO vs. a customer just so I can report more customer volume or work to increase the average monthly income figure for IBOs.  I consider all my downline IBOs as customers as well as business partners (although I don't report their volume as customer volume, obviously).

Aron Gannon said:
September 10, 2007 3:11 PM | #

I've seen it mentioned on the blogs that new IBOs will have do a certain number of retail sales before they can register IBOs in their down-line.  I haven't read this in any of the literature published by Quixtar.  Where's the source of this information?  Does it apply to specific markets?

Bridgett said:
September 11, 2007 1:40 AM | #

Jeffrey said on Sept 4th, "I'm not going to buy 12 of the new Simply Nurtilite drinks to see if I like it."

Hey Jeffrey, I'm not going to buy 12 of the new SN drinks because they are $2.50 for 8 ounces of juice.

I can get ORGANIC just at Whole Foods for 1/2 the price.

And, as far as the bars go, Balance Bars and Nectar Cliff Bars are two ORGANIC bars which cost (at most) $1.39. Go to Amazon.com and see for yourself. The pricing is even less expensive at Whole Foods.

SN bars, same size, are $2.22.

The Simply Nutrilite product line, the new line that is supposed to help was retail, and create a bridge over to the Nutrilite line, is not cost-competitive at IBO cost, let alone retail.

And a 40% markup? Is that crazy or what? On a food/drink product???

As IBOs can we all agree NOT to buy anything that we wouldn't buy if it weren't from our biz (didn't have PV/BV attached to it)?

This whole "Be 100% Personal Use" teaching from LOAs has really messed up the pricing and I for up am so done with it.

I refused to buy the XS Protein Pudding, even to taste it, because it was almost twice as much as it's competitor. I'm now happy to see that that product has been discontinued.

So that's my new litmus test: Would I buy this if there wasn't any PV/BV attached? If the answer is "no" then that product does not fit in to the First Circle Initiative.

I'm voting with my $$s. How about you?

Nick Kobelja said:
September 11, 2007 11:57 AM | #

Bridget, this is very interesting.  Are we much more expensive because of the brand name or because there is something about the Simply Nutrilite products that warrant it?  It would be interesting to see the ingredient and nutrition comparison for the competing products you were looking at.  Whole foods may be whole but may not have the nutrition and stuff that Simply Nutrilite has.  This is also bad news as I have the sample kit on pre-order.

BTW, I'm right there with you on the voting with $$ issue.  The notion of "supporting your own business" by buying products that you wouldn't buy anyway seems to not make much sense -- how could you possibly make profit by purchasing products from your own store!  It only helps your upline.  (Conspiracy theory - we've been told that by our upline for a reason).

GirlPower said:
September 11, 2007 4:16 PM | #

I DID make the mistake of buying the XS Protein Pudding, Bridgett. And I'll be the first to tell you that it was discontinued because it tasted AWFUL, not because of the cost. Slap a healthy "protein" or "low-carb" label on something and people will buy it. Providing that it tastes at least halfway decent. The Protein Pudding didn't.

Aron Gannon said:
September 11, 2007 5:35 PM | #

I always chilled the XS protein pudding before I consumed it.  I liked it.  Whatever.  I'm guessing it wouldn't taste as good if it was at room temperature.

Bridgett,

We always need to be sure we are comparing apples to apples, of course.  The Simply Nutrilite bars DO have mostly organic ingredients.  I haven't found a competitive food bar that exactly matched the ingredients or performed at exactly the same level as the Nutrilite and Trim Advantage products.  However, I haven't done a scientific research project.  I just know that I have a shot at getting out of debt and being free by promoting my products.  The other products aren't going to help me achieve these things.

Bridgett said:
September 11, 2007 9:22 PM | #

Hi Nick,

I'm looking at all the labels right now. I suggest everyone read the labels. Lots of times, you can even get the Nutritional labels online. But I'd say go and buy the stuff. Taste it. If it tastes just as good, and has the same/similar quality ingredients, then why pay 30-100% more for a product?

The Organic Clif Nectar Bars have more fiber and less protein. The protein in the SN bars comes from "soy crisps". The Organic Balance Bars have a little more protein (again the source is soy crisps), similar fiber.

.

.

.

Hi GirlPower,

Good to know about the taste. Kind of wish they had a clue about pricing.

Our pudding's competitor is Sly Stallone's pudding.

Type in “protein pudding”  in to Google and you’ll see his “InStone High Protein Pudding”.

His comes in bigger 6 oz cans, with 20 g protein (ours is 3.5 oz, 12 g protein).

I've found three websites (in less than five minutes) that carry his product all for $35/24 pack. If we "Quixtarized" their pricing, that $35 would be $67.68

.

.

.

Hi Aron,

I'm comparing ORGANIC Clif and ORGANIC Balance bars with the SN bars.

Trim Advantage bars are NOT the quality of Nutrilite. They used to carry the Nutrilite name. Not any more. Look at the Meal Rep bars. $2.51 for corn syrup--the cheapest, worse sweetener for you. There are a ton of meal rep bars, same or better quality for 99 cents to $1.29.

The new Trim Protein Snack Bars. There used to be a comparison chart on line until I brought it to Quixtar’s attention that one of the competitors’ numbers was wrong. They had inverted the sugar and fiber gram count--making the sugar looking higher and the fiber look lower.

I also pointed out that the four bars they compared it to were between 99 cents to $1.54. Our new bar cost more at IBO cost than the HIGHEST priced bar. Forget about being competitive at RETAIL.

.

.

.

Aron said, “I just know that I have a shot at getting out of debt and being free by promoting my products.”

Aron, I totally agree with you. I just suggest that you promote our products that don’t rip people off.

This idea that we are paying for “opportunity” in our products is nuts. Quixtar is a DIRECT SELLING company. Why the heck should their products be more than those of companies that have many more middlemen in the distribution chain and spend a ton on traditional advertising? IT IS NOT LOGICAL.

We have 1,000+ products. I’m just saying to focus on the ones that COULD hold up in the market place, AT RETAIL, regardless of a business opportunity attached to it.

Otherwise, the Corp will continue this nonsense because we the IBOs will, in classic disfunctional parlance, enable them.

Anon IBO said:
September 12, 2007 12:05 AM | #

Aron,

"I always chilled the XS protein pudding before I consumed it.  I liked it.  Whatever.  I'm guessing it wouldn't taste as good if it was at room temperature."

Same goes with XS Energy drinks...

I always have to have XS chilled. Much better, I like pouring cold XS lemonade into a frozen frosty beer mug on a hot summer day. Gets a nice ice crust on top.

Yummy.

Canadian IBO 2 said:
September 12, 2007 3:36 PM | #

I agree with Bridgett.  The Simply Nutrilite product line is overpriced.  $32.99 (Canadian), plus the shipping costs and tax (14% here in Canada) and you're over $40.00 for 12 cans.   How is that retailable?

Mike said:
September 12, 2007 10:54 PM | #

so let me ask this to all you that complain and cry about being hog tied and forced to sell the quixtar/amway products.

what do you say to the thousands of us ibo's that do sell the product line and have a great time doing so? are all of us just "lucky" or is it hard to address because it shows your lack of effort and ability to own your business.

grow up and choose to succeed or quit! but please stop your crying...it makes you look pathetic.

Mike.

Nick Kobelja said:
September 13, 2007 9:34 AM | #

Whoa, Mike.  It sure seems you are turning shades of gray into either black or white.  

mike said:
September 13, 2007 11:46 AM | #

it is black and white.

do it or move on!

Utah said:
September 13, 2007 2:29 PM | #

Simply Nutrilite should not be an open ordering website. They should have an IBO number to order, or run them through the process of getting one just like Quixtar.com has for 8 years. I know Quixtar will assign one for Simply Nutrilite customers without an IBO, but the whole site, and all the posts from Alticor, lets the IBOs think they don't need us anymore.

jthompson said:
September 13, 2007 2:39 PM | #

Product Price Critics,

Please tell me of a better mlm company with better prices of home, health, skincare, sports nutrition?

If you can't suggest an alternative, its just criticism and theory.

jthompson

Bridgett said:
September 13, 2007 3:18 PM | #

Hi Mike,

If you are interested in the pricing issue, and the concerns of someone like myself who does retail, I invite you to join the discussion over at Sales Speak http://salesspeak.opportunityzone.com/2007/09/11/Is-low-price-the-only-reason-a-customer-buys.aspx#comments

Also I like to reiterate that I am very pleased that I have many products to choose from regarding what I market.

Simply Nutrilite is not my only option, and for that, I am grateful.

Thank you for your kind words, calling your fellow IBOs pathetic.

You are a class act and I sure can learn a lot from you.

Cheers.

jthompson said:
September 13, 2007 5:01 PM | #

Why TEAM complains about pricing?

(a preview of upcoming article from orrinwoodward.blogspot)

1.  TEAM wanted to build the business, stacking/depth, and sell the system/training, and did not want to sell products

2.  Amway products have always required educating customers to get retail sales.  The products are the best in the world, with more exclusives than just about any Company in the world.... but people need to be educated to understand that centrum is no better than a placebo and Double is made from life-giving organic fruits/veggies

3.  TEAM did not do product training geared toward retail sales

4. TEAM wants Walmart Prices with Quixtar Quality & Profit Margin - not going to happen!  Walmart makes about 3% profit margin, they do like 600 billion in sales last time i checked with only like 10 billion in profit (these #s are a guess)

5. TEAM compares Q to Walmart.  One is the biggest company in the world that has put thousands of business out of business b/c of their strategy which includes not mfg anything, and Q is in mlm industry that creates great profits b/c of exclusive mfg'd products

6.  The only fair comparison is comparing Q products with other mlm companies like NuSkin, Pharmanex, Herbalife, Unicity, etc....

rdknyvr said:
September 13, 2007 5:24 PM | #

Mike, one of the main purposes for the O'Zone is to provide direct and honest feedback to Quixtar, at their explicit request. Bridgett and her husband, for example are already 25%ers, and Q has used her in focus groups... honest, right-motives feedback is always the most valuable, and that's where she's coming from... as are many others posting here. My own upline has given me the same advice -- if it doesn't make financial sense (ie. even in the value/price proposition sense), don't buy it (or sell it) and let that be "market feedback" to the company -- and they are way higher up than you. Guaranteed. :) (meant in a friendly way)

Aron Gannon said:
September 14, 2007 12:48 AM | #

Mike,

Your comment from September 12 doesn't show the best people skills.  However, you're right.  Some of the people blogging (and many more IBOs out there) haven't made the transition from employee mentality and consumer mentality to business owner mentality.

Mike said:
September 14, 2007 11:09 AM | #

At times the truth can hurt. Define people skills...sugar coat the basics so you wont hurt someones fragile ego?

Bridgett,

There really is nothing to discuss. Quixtar offers 400+ exclusives and thousands of name brand products for you to sell. Pick a handfull that you can get behind and make it happen. If you want to earn the large incomes...duplicate yourself.

Lets all get a backbone and go to work.

Bridgett said:
September 14, 2007 9:49 PM | #

Hi Mike,

Um, just wondering if you read my comment to you. If not, what I said was that I DO retail and that I am grateful that I have such a large selection of products to choose from to market. Some (but not all) of my favorites are:

XS Energy Drink

Rhodiola

Gift Albums

Time Defiance Nighttime Crème

SA8 Detergent

.

.

.

.

Everyone else:

(Mike I understand from you last comment that “there is really nothing to discuss”, so I won’t collapse in a pool of tears if you wish not to participate)

1) Simply Nutrilite is the first product line launched since the First Circle Initiative.

Do all of you know what the First Circle Initiative is? If not, I’d research that—what it is, why we are doing it, etc.

A good start would be to view all the videos from Quixtar’s Connections. I’d particularly focus on the Rob Davidson video in which Ray Alexander talks about retailing.

Quixtar & the Opportunity > Quixtar Business Incentives (QBI) > Business Conferences>Quixtar Connections 2007

2) Simply Nutrilite’s targeted audience is “Super Mom”. If you are not familiar with the SN Team’s marketing strategy and goals, then listen to the Sept 4th Podcast.

Find Products>Exclusive Brands>Simply Nutrilite>Podcast>Sept 4th

Once you research these two things, then we can engage in a conversation.

My take is:

a) Simply Nutrilite does not follow the Corp’s stated intentions regarding the First Circle Initiative;

b) Quixtar uses seemingly flimsy market “research” to determine their prices.

I say “seemingly” because I am hoping that Todd and John (the brand managers of SN) did more in-depth research than they allude to on the podcast.

I’ve written them and am awaiting a response about this.

I look forward to others’ educated viewpoints.

Peace.

Bridgett said:
September 15, 2007 3:12 AM | #

Oh, let me add one other thing:

It's the bars and the juices for Simply Nutrilite that I have issues with.

The Twist Tubes ROCK. I WILL be selling a TON of those--at FULL retail.

I've already sold some right out of my purse!

People want the effect of supplements, but they don't necessarily like pill-popping, for a variety of reasons.

The next "flavor" I'd like to see added to the line is Rhodiola branded "ENERGY". This may be a little tough 'cause this herb is horrible-tasting. But I bet the Corp is up to the challenge!

Josh said:
September 15, 2007 10:46 AM | #

JT,

Your numbers for Wal-Mart are a bit off.  However, your thoughts remain valid.

Last numbers I received were 356 Billion (give or a take a dollar or two) and profit was around 12 Billion.  So you got that pretty close.  Exxon Mobil on the other hand is a different story!! :)

The Big Apple said:
September 15, 2007 3:30 PM | #

Jeffery,

Your comments on Sept. 8 detail the IBO and retail price for both sizes of Nutrilite Daily products.  This is an open web site which can be found through Google and other means.  Current and potential customers can read what’s here.  

I'd like to respectfully request that we do not disclose specific IBO prices in posts on these blogs.  It's one thing to talk about prices in general, and whether or not the prices are too high.  But some IBOs make a significant income from the retail side of the business, and disclosure of specific prices can harm other IBO’s businesses by giving customers this pricing information.

Thank you.

Jeffrey said:
September 17, 2007 7:26 PM | #

Big Apple: IBO cost is no secret. Anybody can figure out the price code in the catalogs. Besides, one of the draws to any MLM company is IBO pricing. Besides, do you REALLY think that people that have said "no" to this business, or have no interest in MLM in general would be reading these blogs? These blogs are to a very targested audience, so I still don't think it matters.

Bridgett said:
September 18, 2007 10:10 AM | #

Hi Jeffrey,

I tend to agree with Big Apple. I understand your point. And I see BA's point as well.

This blog is also viewed by "the critics"--not just viewed, but studied by them. It's their hobby. Don't understand it, think it's odd, but we all have our forms of "amusement" I guess.

If we don't really need to state the IBO pricing, in order to communicate a point, I'll respect BA's request.

I don't outright say the IBO pricing on things, but I have talked about % mark-up, so people, with half a brain (and a calculator) could figure out the IBO cost.

So maybe I'm offending BA as well. Just don't know how to communicate certain points without disclosing "insider" information. :)

And congratulations on all the retailing you are doing this month! Almost $500 already!!!

Good for you Jeffrey!

Tiger Wade said:
September 19, 2007 3:14 PM | #

The Simply Nutrilite pricing was based on a feedback through surveys and interviews with a targeted audience.  The targeted audience is the new "SUPER MOM".   She's very busy and doesn't have time to cook all of the time.  The SN snacks are used as a quick on the go item.  

Bridgett said:
September 20, 2007 10:59 AM | #

Hi Tiger!

I'm sorry I don't know who you are. I'm assuming you are from Quixtar?

Thanks for joining the conversation.

Can you tell me how the surveys and interviews were set up?

How many women were interviewed/surveyed?

What is your criteria for being a Super Mom? She's a mom and she's busy. Any other criteria? Any questions asked regarding age, ethnicity, household income, SAHM (stay at home mom) or does she work outside the home, marital status, what state she lives in?

Were these interviews and surveys conducted on the street, formal focus groups, in person, in writing, over the phone?

Were the products sampled out? If so, how? Full cans/bars, or in sample cups and cut up pieces?

When you asked, "How much would you pay for this?" (which I believe is the question Todd and John said was asked--on the Podcast), what was "this"? Was it one bar, one juice. Or was it the entire box?

And were there any follow-up questions such as, "How much would you be willing to pay day in and day out?"

In other words, were there any questions, geared toward repeat sales (rather than how much would you pay to TRY this)?

Were there any questions asked to get a sense of other like-products on the market that these Super Moms are aware of or have  tried/used in the past or present?

Thanks Tiger. Appreciate you joining the conversation and helping us (at least me) understand the process.

I look forward to your next post.

:)

Utah said:
September 22, 2007 11:55 AM | #

Tiger,

Why is the Simply Nutrilite site set up so anyone can order with out an IBO? I know you will assign one to the nearest Platinum, but the site was set up to act like the assumption is they don't have an IBO. The default on the site is such that you don't expect them to know one.

Glam said:
September 23, 2007 9:59 PM | #

Utah,

This is good for Amway and bad for the IBOs.

Tex said:
September 24, 2007 11:42 AM | #

Utah,

I think Quixtar wanted to have an option to allow a customer to get the products even if the customer doesn't know an IBO. That is why one is assigned. Makes sense to me.

Utah said:
September 25, 2007 1:51 AM | #

Tex,

If one is assigned, why doesn't the IBO get the customer information so they can contact them, or let them know of other products, or find out if they want to be IBO's, or am I wrong?

GirlPower said:
September 25, 2007 3:35 PM | #

Utah,

Customers have the option of blocking not only their order info, but also their contact information. Some people don't wish to have strangers calling or e-mailing them to find out how they like the products and/or offer them more products.

I'm fine with that. Personally, I'm not too thrilled about unsolicited e-mails either.

Todd Herring said:
September 26, 2007 6:50 PM | #

*I posted this comment as well on the Susan's Sales Speak Blog. http://salesspeak.opportunityzone.com/2007/09/11/Is-low-price-the-only-reason-a-customer-buys.aspx

Bridgett and all,

I would be happy to discuss the nitty gritty details of our market research, but a public blog is not the place to present intilectual property in detail.  The moment any research is publicly released, it immediately becomes a “claim” and represents legal liabilities. I’m sure those of you in R&D and marketing already understand how technical and regulatory constraints make our lives difficult. (It’s not just spicy blogs and rocket monkeys:) That said, it’s clear that we need to develop some marketing materials that will address these issues and do a better job in assiting IBOs like yourself in a price/value sales strategy.  I assure you that we are, and will continue to.  Suggestions are certainly welcome.

Here is what I can say in this forum about the MR we conducted prior to the Simply Nutrilite launch.  I humbly ask you to realize that there is no way I will change your mind no matter the reasearch I present you.  I will not attempt to change your mind, I believe that would be a futile endevor. I say that because if you happened to be one of the consumers who responded to our research, you obviously would not have been one of the respondants that said $19.99 was a reasonable price to pay for 9 food bars.  That said, there was a statisticaly significant group that said anything less than $25 was reasonable.  Our research showed that all of the Simply Nutrilite product pricing fell well within what a statisticaly significant group said was reasonable.  Next, we did extensive price comparisons to see if our research matched the industry price ranges, and they did.  Based on that corelation, its reasonable to say that we’re not the only company that had simlar results based on similar studies.  Of course, we don’t know for sure because market research is an expensive and confidential asset for any company.

As for the 40% retail mark-up.  We set that AFTER we validated our retail prices.  That means that we lowered corporate margins to support the first circle initiative of retail profitability.  The 40% number was reached after extensive debate within Quixtar as well as with a great number of IBOs at all levels of leadership.  

Bridgett, your points are valid, your concerns are valid, and your logic is sound.  We know there are people who will not buy Simply Nutrilite, we know there are people who will only buy it once, and we also know there are people that will buy it over and over and over again.  And there are Super Moms like you in each of those categories.  The Super Moms that buy it over and over will buy it because they love the flavor, it caught their attention, it keeps them from losing 20 minutes of their life at the food bar aisle of the whole foods, and/or they respect the trusted advisor they’ve found in the IBO that they purchase the products from.  

Marketing is not an exact science, and those that find themselves ignored by it have reason to be upset.  I deeply respect your commitment to this business, with that I ask that you respect that perhaps there are inteligent, price aware consumers out there that will pay the prices we are asking, even after reading your blog postings or visiting a whole foods.  Further, that those people represent a statisticaly significant segment of the marketplace (On that point, we’ll probably have to agree to disagree).  Our bars, juices, twist tubes and supplements are not the cheapest, nor are they the most expensive in the marketplace.  We made educated pricing decisions upon sound consumer research performed by an industry leading third party and closely compared it to competitive product research at multiple retail stores, interntet sites and other direct sales companies.

I’m on the road much of this fall, and starting a sieries of events in early 2008, that we’ll be sharing with you from our podcasts.  I may not be that accessible, I promised my wife she’d be first in line to register complaints, but I won’t shy away from an honest answer to a tough question, you may just have to be patient.

… you know what, maybe it’s time I get a blog too… A note to all: In these postings and comments I see the future of a healthy business.  Keep up the excellent discussion!!  

rdknyvr said:
September 27, 2007 12:22 PM | #

Todd, you certainly have the right tone and attitude for a successful blog. Obviously  some of us have disagreements -- or different perspectives -- on the assumptions behind the business model and decisions on pricing, but it's a good discussion, if you guys really are listening in advance of your decisions.

And do give that Blog ideal some serious consideration :)

Josh said:
September 28, 2007 12:18 AM | #

Todd,

Thanks for the candid response.  I am sure Bridgett appreciates just a response!  As she has said.  I also am very glad you responded.

The answer is very vague, but I believe I can read between the lines.

Thanks again

Bridgett said:
September 28, 2007 11:52 AM | #

Josh,

LOL. Love the word choice “vague”. I think that is the most polite way of saying what I really want to say.

:)

Bridgett said:
September 28, 2007 11:59 AM | #

rdknyvr said, “…but it's a good discussion, if you guys really are listening in advance of your decisions.”

Rdknyvr, in order to have good discussion, doesn’t that require that we be honest? I have been operating in a different reality than the Corp., and they haven’t been honest enough to correct me.

The light finally went on after reading Todd’s latest response. And when you look at the marketing strategy for Simply Nutrilite, it all makes sense now.

The Corp.’s  philosophy is:

“We are selling an image. Forget pricing. Forget facts. Find people who don’t care about pricing or the facts. Sell the image and find people who will buy in to the image.”

Whether I agree or disagree with this is beside the point. It’s not my company. I’m not the owner. I just would have appreciated some honesty so that I didn’t waste so much time and energy trying to have a discussion—and being frustrated when I got a “blah, blah, blah, blah” answer.

And wasting so much time and energy marketing products using the wrong “tactics”.

I’d also say that the Corp. does a  HUGE disservice (referring the the SN Podcast) saying that SN is targeted to Super Moms. That is NOT the audience if we are to sell image rather than substance.

Last week I was talking to a single guy in his late 20s when he mentioned that he’s hooked on Vitamin Water. He said without any prompting, “I know it’s all marketing. That stuff can’t be good for you. Look at all the sugar. But I don’t care. I’m hooked on the stuff.”

When I asked him how much it cost, he responsed, “Huh? I don’t know. I just know that a bottle and a pack of smokes is ten bucks.”

THAT is our target audience!

Don’t get me wrong—our products are decent products (some are fantastic), but it’s image that is dictating the price tag on some, in this case Simply Nutrilte.

Oh, how the truth will set you FREEEEEEE!!!!!

Jeffrey said:
September 29, 2007 6:07 PM | #

And now, it's time for Jeffrey's Top Ten List:

WHY A/Q SHOULD BREAK UP CASE LOTS:

10. Some of us live in 800 square foot apartments that are so small that we have no storage space and we can clean the entire apartment without ever changing where the vacuum is plugged in.

9. Some of us are not Diamonds or Platinums and we do not have $200 a week to spend on food items.

8. Some of our customers are 80 years old and even taking Nutrilite, it is hard for them to pick up a case of Trim Advantage Meal Replacement Shakes without having to go to the Chiropractor the next day.

7. Some of us have small refrigerators so they can fit into our small apartments.

6. Some of us want to be able to buy one item to see how it tastes before springing for an entire case.

5. Some of us like to place orders with a variety of products and case lots makes this impossible.

4. It irritates my customers.

3. It irritates my downline IBOs.

2. It irritates me.

1. It shouts very loud: The marketing department doesn't care how inconvenient, financially burdensome, and impractical from a storage point of view it is.

And now, stay tuned for Great Moments in Presidential Speeches.

"And uh, so uh, but uh, anyhow..."

U said:
September 30, 2007 2:27 AM | #

Jeffrey,

I agree, when you expect two people to buy enough mayonnaise for two years and don't offer Miracle Whip, who is going to by it?

That being said, I am not happy they are getting rid of caselot prices. In the rare occation I buy 4 or 6 packages of double X, it would be nice to get a better deal. That ends in a day or two.

The last "case" I bought was a case of cinnamon  breath spray (It used to be sweet shot). I am glad I did, because they were going to only have mint. That said, it is not anywhere as good as cinnamon sweet shot used to be. The case will last me a year.

They are not dropping cases, such as paper products, like Bath Tissue. I do go through lots of bath tissue, paper towels (they did just improve them), and facial tissues.  I don't want them to change that. I would like to get a bottle of catsup and not more.

I don't like to try some of the breakfast products and have to buy 6 boxes. Buying 2 or 3 isn't as bad.

I would again like to thank them for fixing the paper towels. They used to have these big center cardboards that didn't fit anything and would fall off easier. The towels weren't as good. This last order they were much better and had gone to the smaller center cardboard rolls.

Utah said:
September 30, 2007 2:32 AM |