From: lou@hpkslx.mayfield.HP.COM (Lou Kvitek)
Newsgroups: alt.business.multi-level
Subject: Re: Amway product pricing and commissions (was: Is Amway a scam???)
Date: 29 Oct 92 16:07:56 GMT
Organization: HP Response Center Lab

In alt.business.multi-level, Eli.Mantel@bbs.oit.unc.edu (Eli Mantel) writes:

> I guess I can make personal attacks too. :)

I agree, lets leave out the personal attacks.  Makes us sound like
politicians running for office (that sends chills down my spine).

> I understand that Amway distributors are encouraged to buy Amway products
> for their personal use.  This is all well and good, providing the products
> represent a good value... naturally, the distributor's commission con-
> stitutes a discount, which helps.  Even with the commission, though, there
> may be times when a better value can be had elsewhere.  However, in

You must be careful how you define better value.  If you have to leave
your house and drive somewhere, browse the shelves, and then stand in line
to buy something - then you must factor in these added costs: your time,
depreciation of your vehicle, gas, stress dealing with traffic, parking,
lines at the store.  Most people do not take this into consideration, but
a growing number of the population is waking up to this (see USA Today
10/28/92 issue for the percentage of people now shopping mail order).

> addition to the commission, there are I believe PV and BV earned... which
> I assume represent some kind of a "soft" or contingent commission.

Why make assumptions?  You obviously have some interest in how this 
really works.  Why not sit down with a distributor for 1 hour and
get the facts?  Surely you prefer first hand information over second
hand.  If you have seen it before, check it out again, it sounds like
you need a review of the concept.  You are familiar with some of the
terms.  It usually takes 2-4 times of seeing the plan before it is
fully understood.

> Do you have any way of estimating what this "soft" commission is worth
> when you buy a product for yourself?  If not, do you ever consider
> buying non-Amway products when an appropriate Amway product is available?

No estimating needed, the commission you receive is based upon the volume
of products that you move through your business.  The volume comes from
three sources:

    1) Personal use - products you buy and use yourself
    2) Retail sales - to your retail customers (usually about 10 customers)
    3) Wholesale    - to the people you have sponsored

The commission goes up with volume from 3% for $100 to 25% for $7500.
So, if you run $7500 PV monthly (you are a direct distributor) then 
every product you buy for yourself you get an additional 25% off.

I never consider buying a non-Amway product when a suitable Amway product
is available.  Why should I?  If you owned Eli's grocery store would you buy
your groceries at Lou's grocery?   Of course not.   If you owned a Chevrolet
dealership would you drive a Ford?  Of course not.   To buy elsewhere
demonstrates to observers that you do not believe in your own products.
Why support the competition's business when you can support your own?
The cost would have to be more than double for me to consider buying
elsewhere - and I have never had this happen.  Even at full retail price
the prices are competitive and the vast majority (99%) of the time much 
cheaper to use than the competition - if you take into account the commission 
and wholesale discount you save even more!  We have price comparisons to 
prove it.

Lou
kvitekl@hpwcsvp.mayfield.hp.com