Original Source
The Moral Delema
Thursday, November 1, 2007
The product pricing structure is based on margin goals not volume goals. In other words a certain percentage of net profit must be reached for each product. From a competitive standpoint this puts the cart before the horse. By setting prices according to this margin Amway/Quixtar refused to follow the market trends by which any reasonable cooperation would indulge in order to remain competitive. This puts all IBOs in the field in a legal and ethical conundrum.
By marketing a networking plan in which product pricing is 200% higher than their market value the IBO is participating in an illegal pyramid. Most IBOs are unaware of this. They have been directed to the 1979 omnitron case, and are unaware of the changes that have taken place. Almost all of the IBOs are well intentioned people. If one of your Friends shows you the Quixtar plan don't get mad at them, the blame here lies with Quixtar/Amway. They are well aware that less than 4% of there volume is retailed, and that a good percentage of that is falsely reported. In fact they have even helped some IBOs learn how to falsely report retail sales.
These artificially high prices are a form of product loading. The founding families and management at Amway have been aware of this for years. The fundamental problem is Q/A is either too arrogant, lazy, or stupid to change. I believe its a combination of all.
Arrogance is the worst of sins, through the years many leading IBOs have pleaded to Q/A to change so the new IBO could have a business model that he or she could win with. Their pleads fell on deaf ears. Lets face it, the 2nd generation owners have taken over. They are spoiled rich kids who have no problem getting richer at the ex pence of the new IBOs registering each month. When you,ve been a billionaire since the day you were born you may be reluctant to change, that takes work (Lazy). Finally, they just can't stop themselves from hanging on to a relic of a business in the information age (stupid). Q/A is afraid of competing with team because they know they can't compete.
Posted by Q-Less at 9:34 PM
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12 comments:
Who wrote this and where did they get their 'facts' about the A/Q pricing system? I didn't find any references sited in the original. Just wanted to get the facts from the source, not secondhand blogger-spiel.
And, I seriously doubt that the TEAM leaders would agree with the disparaging remarks about 2nd generation leaders at A/Q. I know Ron Simmons said that 'reasonable people can disagree on the same subject'. Name-calling does not denote 'reasonable' behavior.
This is the kind of stuff that really doesn't need to be 'published' anywhere. Please raise the bar.
On Pricing and Pyramids . . .
For those desiring to understand the intimate relationship between Pricing , pyramid laws, and reliable residual income, I will post here the video lesson from my course and special report.
See it at:
http://csf5.6scoach.com
I usually charge for it along with the sale of my course, but by the high level of communication on this blog, I suspect there are many readers here that would greatly appreciate it.
Turn your speakers up.
I welcome comments.
Lou Abbott
Founder
http://www.MLMtheWholeTruth.com
...for people who want to know the whole truth about Network Marketing
http://www.PipelineParable.com
...for those who would rather build "pipelines" than "carry buckets"
why not? therightthing hmmmm?
we got the pricing from our old receipts and then we went to walmart, get a calculator YOU will probably need it.
lou abbott has got some good info on there, competitive pricing
thanks lou
You Team guys drive me crazy with all your unsubstantiated, biased, pricing analysis.
If you focus on the "convenience" items like paper products and name brand stuff. Yep... I doesn't compete with Walmart. I don't buy it from Q, I get it elsewhere.
If you focus on Q's core line and compare with like, name brand products, in the same quality categories, following usage instructions, then Q shines.
Why not take your analysis and see how your local grocery store, Target, Nordstroms, etc. compares to Walmart?
Also, when you team guys get your own pyramid scheme going with your handful of products, let's do a comparison on that!
thats a good one, TEAM is biased that good and oh like q isnt? q is far more bisaed team just speaks the truth, truth hurts.
thats a good one, TEAM is biased that good and oh like q isnt? q is far more bisaed team just speaks the truth, truth hurts.
oh, sry for double post, didnt think it registered
One question. What exactly is "delema"? I tried to look it up but could not find anything for that word.
Could you have meant dilemna, or as sometimes spelled dilemma?
Your post lost credibility before it even started.
While he may have misspelled some words, it does not invalidate his opinion or ideas. We can take the same argument to a different level (childishness) and ignore your comment altogether too.
Tom,
This same post was on another blog and was criticized for the exact same thing by a blogger that is affiliated w/ TEAM. Are they being childish too?
And yes, it does invalidate his opinion and ideas. The credibility was gone before it even started.
I've heard poor grammar from Diamonds (and above). I've seen spelling errors in Team materials as well as Quixtar materials. I thought we were about being open minded, smart thinking and accepting of people, not pettiness. In the corporate world, yes, poor spelling and bad grammar invalidate everything you say. When you are focused on people, you look beyond the flaws (because we all have them).
When you judge others by their cover (or spelling) be glad that your flaws are not as visible (at the moment).
Tom,
I agree and my apologies to both you and the writer of the blog.
He is stating what he believes and that does count for something even if I do not agree with what was written.
Lets hope that cooler heads will prevail in all of this and try to become better people because of it.
Jeff
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