We want to take the online model and merge it with discount pricing. Wal-Mart has to pay for property tax, land, stores, lighting, shoplifting, inventory, greeters, etc., etc., etc. We want what Quixtar had promised us in 1999. We have given up hope that Quixtar can provide that. To be honest, I took a look at the Market America website, and was quite impressed. Granted it was only a superficial look at the site, but it reminded me of all the talk of what Quixtar was *going* to be back in 1999.
I think most of us have not seen what we want. We are trying to define it. It is something like a cross between Wal-Mart discounting and Amazon.com online-only-ness.
And the troubles that Wal-Mart is supposedly having? I searched the Wall Street Journal's website (thanks IBOAI for not providing a link to the source), and all I found was the following:
From this article at the Wall Street Jounral:
Wal-Mart Stores Inc is struggling to redefine its down-market image as other discounters pitch themselves as upscale and palatable alternatives.
And the IBOAI decided that blurb was enough to say "Hah. See, Wal-Mart ain't so tough!" Are we still in 3rd grade? It sure looks like they are grasping at straws.
I'm pretty sure its not just Randy, Ron, Bill, Chuck and Don who have seen the growth curve in their business take a steep change in direction in the mid-90s. Orrin and Chris, from what I understand, didn't really have much of a business before 1999, so all they really know is Quixtar, that's the only growth curve they've seen. But the remaining IBOAI members are not so green. Are they hoping that the trend will change? That suddenly (and magically) their growth curves will return to their early 90s glory?
So Wal-Mart is having a small bump in its road. It may not increase its profits as much as it had hoped, but I don't think it will be anything like what Quixtar will see. I'm looking forward to the numbers posted by Quixtar next fall, if they have the courage to post the numbers. So they've been doing around $1.1 billion. By my estimation, Team represents somewhere between $120 million and $250 million. That's a really rough, conservative estimate, but it should be in the ballpark. So I estimate that $1.1 billion will become $1 billion, or less next year. That is not taking into account the bad name that Quixtar is taking on around the web. Nor is it taking into account that all new potential recruits face the fact that they will become Amway distributors. Nor is it taking into account that prices have gone up again this year (ok, shipping has gone up and prices mostly stayed the same, still costs me more). And Quixtar thought they had a bad name on the internet before. After being shown the plan, someone does a search for Quixtar, and what do they find? Voluminous blogs and message boards talking about the great exodus of thousands of distributors (IBOs at the time) who left because the prices were too high, and getting higher. Then they are going to want to check out the prices, and guess what, they'll be high.
Now Quixtar is a small part of the overall Amway. Quixtar does less than 1/5 the volume of Amway + Quixtar. Maybe they really do want to get rid of the United States and Canada Amway. Who knows. I was told that Quixtar was going to be United States and Canada only because most people had the internet. What are those non-US Diamonds thinking about when they consider that their countries are going to get the internet, and they will get to see the history of the great Team exodus?
This is getting weirder and weirder as it goes on. Stay tuned for more fun from Quixtar and their band of merry men, I mean the IBOAI.