Tuesday, September 11, 2007

TEAM: The paper trail continues.....

Original Source

The paper trail continues.....
Tuesday, September 11, 2007

On to day 2 of my price comparison journey! I am sticking with paper products. It seems this is a category of great interest to new IBO's. I think it is for a few reasons. First, having paper products delivered to your door saves a lot of hassle. It is usually one of the first questions you hear....what about your paper products? Second, I think it is so important because I have found paper products draw a lot of people to shop at stores such as Costco and Sam's Club. This a market that could be picked up with competitive pricing. No mom likes to buy paper products. They are bulky and they take up your entire cart! Where do you put your kids???? With 4 of them I already have 2 carts, and I hate having my carts overloaded with toilet paper and paper towels and paper plates. Moms, and everyone else for that matter, are happy to have that stuff delivered to their door.
However, I have found that paper products are one of the most overpriced categories in all of Quixtar! And they all seem to be slammed with that pre-set extra delivery charge. Well, here's what I found.

Product #2
Paper Plates

9" coated, microwave safe paper plates
288 plates
$5.00 (pre-set deliver charge)
*really, how hard can it be to ship 288 plates? do we need this extra $5.00 charge?
$24.32 total

9" coated, microwave safe paper plates by Dixie
288 plates
$9.79 total

Difference of $14.53!

findings: WOW! Can you say overpriced! That is a big difference. It's one thing to raise prices, but when you can buy double the product and have money left over... I don't know why anyone would want to buy those plates at those inflated prices.
Shop at Wal-Mart and get 596 plates and take home the extra $4.74.

Posted by Quixtar Lost My Cents at 8:42 PM


Canadian IBO said...

Wow!! How come you southern people get Meadowbrook Paper Towels for such low prices. Must be small cases or something. Anyways I don't do much blogging but every now and then I check to see what is happening. Did some price comparisons of my own today up here in Canada.

Meadowbrook Premium Paper Towels
2 ply 11" x 11" 90 sheets per roll
30 rolls retail @ $71.99
(taking in account 2 full rolls extra a case using our comparison product)FULL RETAIL PER ROLL IS - $2.25

NO FRILLS STORES- Canadian Chain
BOUNTY - Made by P&G
2ply 11" x 11" 88 sheets per roll
RETAIL PER ROLL IS $3.23 (but it has pretty coloured flowers imprinted on each sheet- WOW!!)

WALMART - Canadian Store
BOUNTY - Same product RETAIL-$2.77
Ques: Which one would you buy?

Product # 2
Meadowbrook Gold Toilet Paper
3 ply 264 sheets/roll works out to 90 cents each.

Cashmere Toilet Paper
3 ply 240 sheets/roll works out to 94 cents each ($7.49 for 8roll pk)
(Don't ask me to do the breakdown- Trust me I DID IT including the 24 sheets per roll extra!!!)
Ques: Which one would your buy?

I really trust you are comparing apples to apples folks. It is true you can get 1 ply paper stuff etc for a lot cheaper prices, but quality is quality. Let's not forget that when we talk to our clients and other IBO's. Have a great day and UP YOUR P.V.!!!!

IBOFightback - Fighting the Amway Myths said...

Just curious as to why you TEAM folk aren't doing price comparisons on Quixtar products, the ones the business is based on?

Why only price comparisons on the stuff that have never been part of the business per se?

How about some Artistry price comparisons compared to Loreal, Clarins, Estee Lauder, Chanel?

How about some Nutrilite price comparisons compared to ... oh, that's right, there IS no one to compare to.

That's something like two thirds of the volume. That's the business, not paper towels.

AndrewNZachsDad said...

Canadian IBO, thanks for doing the comparisons for those of us in the frozen north. Looks like we have it pretty good. Maybe we should ensure it is the same in the US, eh?

IBOFightback, I can appreciate what you are saying and it is true that when you look at the coreline products that is when we can use the quality argument. We can argue how much SA8 is per use compared to brand names. We can argue how much better the Artistry line is. We can even argue how much better Nutrilite products are. However, many of us would like the opportunity to market our products to everyone, not just a chosen few who:

a) take the time and understand the importance of studying those product lines to ensure you are getting the best deal instead of just buying the cheapest, and
b) have the money to pay for those products using "anyway money". By this, I mean that they were going to spend (for example) nearly $100 per month or more on nutritional supplements anyway so can afford ours. If Nutrilite products can be of such amazing benefit to all (and, let's face it, they can be) then why are they not priced so that everyone can get them? Apparently, there is a significant enough mark-up applied by the founding families which, if cut, could bring those prices back in line with brands purchased at local pharmacies and give us a fighting chance to actually change how products are distributred in North America.

To make sure we all understand where the price objection is coming from, keep in mind that the leadership on TEAM have been promoting the XS line of energy and nutrition products. This is the product line which TEAM leads with to new prospects. Why, you may well ask? Because health and nutrition is the fastest growing consumer market in North America, the products portray the high quality which Quixtar espouses, and, get this part, XS energy drinks are priced competitively against leading brands currently available in traditional distribution channels. (That means stores, in case you were wondering.)

Shortly after TEAM announced that it was going to promote XS as its lead-off product, Chris Brady spoke at a leadership development seminar and said that by the TEAM marketing these products to the level which such a fast growing organization is capable, a message would be sent to the corporation that high quality competitively priced products were what we wanted in order to boost volume and (another important point) generate higher profits.

Do any of you need to hear it more clearly? TEAM has said that the products are unmarketable at the current prices (on average, paper towels and diapers not withstanding), but the truth is that there is no need for those prices. By bringing the prices in line with the current market Quixtar stand to actually compete with Wal-Mart and other industry giants. So Quixtar don't want to become Wal-Mart, but wouldn't it be nice to get a slice or two of the very large pie they currently own?

The Other Canadian IBO