Thursday, April 7, 2011

Save 30% By Purchasing Through Amway?

One of the things I saw at an Amway presentation, and I believe many still tout this, that shopping with Amway will save you 30%. Of course, I have yet to see any price comparisons to verify this claim. In fact, I believe if you made an opposite claim, that shopping with Amway costs you 30% more, that would probably be more accurate. I believe that Amway recruiters make this claim because to the audience, it only makes sense to join Amway because you will save 30%. Unfortunately, it is a recruiting tactic. Simply walk down the aisles at Walmart and tell the audience with a straight face that you will save 30% on average, but purchasing from Amway instead of WalMart. WalMart boldly makes a claim that families shopping there regularly will save $2500 a year, which is more than the average IBO earns. Amway makes no such claim that I know of. I believe this is an LOS recruiting trick.

If you stop and think about it, Amway must charge at least 30% or more on top of their overhead and profit in order to pay the IBO bonuses. I sincerely doubt that Amway suffers losses to pay out bonuses. Add in shipping and the cost goes up. I believe that the save 30% by shopping with Amway is a myth. If not, I challenge IBOs to put forth a reasonable price comparison to prove me wrong. Where else would Amway get the money to pay those bonuses? I'm sure Amway is npt operating at a loss. Amway must charge more on average because the IBOs constitute layers and layers of middlemen which must be paid. This contradicts what some uplines show in their presentation where they claim that Amwa eliminates the middle man in the distribution process. More likely the opposite is true where they add more middlemen and cost more, whereas a store like Walmart will deal directly with the factories and obtain the best possible prices for their customers.

Walmart will match any advertised price for the same product in their stores. So if you see Walgreens selling a product at a certain price, you can get Walmart to match that price if you show them the printed ad. Try that with an IBO or with Amway and see your results....

No comments: