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May 8, 2006
Monday Reader Mail: 76
By QBlog in Reader Mail
This Reader Mail was certainly inspired by last week's post analyzing Quixtar prices. As you know, I'm not all that concerned with the price of the Quixtar products but obviously it's an issue with others like Brian.
name: Brian
date: May 4, 2006
message: Funny you write about the pricing system. Being as my wife (soon to be ex) is big into Quixtar, and I am very much NOT into Quixtar, I've done a lot of compariosns, like you said though, it's a different area, so prices are somewhat different.
We spent $54 on laundry detergent, and Dish Soap...that was it $54 for both those items, which would have runus maybe $20 for the same supply at a grocery store. When she was in charge of the budget, and directing a lot of cash into Quixtar for the house, we came up short EVERY month. We bounced checks, etc, etc.
When I took over the last 3 months we've had between $500-900 left free at the end of the month, and I'm no financial wizard.
90% of th products are horridly overpriced, and when you add in taxes, and shipping it gets ridiculous.
It comes down to payihng $1.50 for a 24 oz XS energy drink, or .79 for a 32 oz Powerade.
One thing I've also noticed about the people in Quixtar is that they always tried to tell prospective IBO's they did comparison shopping...and they did but they ALWAYS went to the highest priced stores possible, so the prices looked closer.
Anyway, keep up the great work.
The biggest indicator of whether or not Quixtar prices are competitive is how well they sell to non-IBOs on the open market. If the only people who see value in a case of XS are the IBOs who claim that self-consumption as revenue then it's possibly a poorly priced product. However, if non-IBOs are clamoring for the drinks then it's a good indication that the price is competitive.
Comments
In the post last week, I did forget about something:
When you, as an IBO, purchase from Quixtar, you are charged sales tax on the RETAIL price, not the price you actually pay. There is a big number of rules / issues with this, but I don't feel like addressing them in a comment, perhaps I will detail that on a future post.
X, you are reimbursed for the "over-payment" in sales tax of wholesale vs retail on all products sold and consumed below retail, down to the wholesale (IBO) price. There is a form for this- Sales Tax adjustment forms, by state, under "Build & Manage my Business -> Tax Information" tabs.
As far as consumers not buying? There is a member in my group that purchases 14 + cases of XS for a group of clients in a hair salon. That is over 100PV in just XS. This is not an isolated incedent, but people on this now clearly "anti-quixtar" blog just try to make it so.
Good day.
The PRICE is not the ONLY factor.
you'll need to use a LOT MORE of their
Personal Care, Laundry and Cleaning, Vitamins to hit your 100 Pv Target.
According to the "Consumer Expenditure Survey" The AVERAGE expenditure is .3% for Laundry and Cleaning supplies; 1.3% for personal Care prducts AND Services; and 1.1% for Drugs, INCLUDING Prescription and over the counter medications. That comes to 2.7% of annual income = $122 PER MONTH for a family earning $54,453 per year.
and THAT includes PRESCRIPTION DRUGS AND PERSONAL SERVICES
Your Sponsor Mentor should come over and CUT YOUR HAIR TOO, for $280 per month in sales.
go to US Dept of Labor,
Bureau of Labor statistics (bls.gov)
the to the
"Consumer Expenditure Survey"
Category: "Drugs" includes Vitamins and over the counter medicines too.
Posted by: Willy | May 8, 2006 6:35 PM