Amway Watch News Feeds

Monday, September 13, 2004

Team of Destiny � Tools Discount Schedule 2002

Team of Destiny � Tools Discount Schedule 2002

Shock! Horror! If you buy 1000 of something then you get a unit price cheaper than someone who buys 1 of something!

It always amazes me that people find this surprising. This is *exactly* the way virtually ALL product related businesses work, whether they be Amway, Coca-Cola, or Team Of Destiny. (disclaimer: i'm not associated with ToD)

So, if you have a business where you require 1000 tapes for training your organisation, your buy price is $3.00 a tape. If you buy one tape, then your price is $6.00 a tape. Seems pretty reasonable to me. How else would it work????

Scott Larsen says -

In the case of TOD tapes, 50% of the price is paid as a commission. If it costs $0.50 to reproduce a tape, then $2.50 is still unaccounted.

In the case of the monthly TOD seminars just 32% is paid out. $17 per ticket is unaccounted. Forty-six percent of the major function tickets are paid out, 54% of the ticket price is unaccounted.

Unaccounted for? For the tapes, how about postage, staff costs, office costs, insurance costs, legal fees, etc etc etc, just like any other business. For seminars, how about all of these plus venue costs, speaker fees, speaker expenses, sound and light engineers, staffing, translators, etc etc etc.

Then of course, perhaps there's some "profit" left over? The IBO Organisation I work with spent over US$1 million dollars in the Phillipines before the amway market even opened there! The money has to come from somewhere. Any individual event (or tape for that matter) cannot be taken on it's own. Tapes remain unsold in stock, so are an expense, events need to be planned and paid for in advance. So many other things as well.

A standard "example" of product distribution is that if something costs $1 to make it will typically sell for around $10. In this case we have tapes costing say 50c to duplicate, plus of course recording and office expenses, and selling for $6, ie much the same as with anything else.

It's a business - get used to it.