You SURE You Want Quixtar Like Wal-Mart?

There are some who say that Quixtar should be more like Wal-Mart. They might want to think again.  The Wall Street Journal today reported that "Wal-Mart's influence over the retail universe is slipping. In fact, the industry's titan is scrambling to keep up with swifter rivals that are redefining the business all around it."

Comments

[Utah]

I, for one, very seldum shops at Wal-mart. That said, then Q didn't have anything for my wife for shoes, and all the other stores didn't either, that is where we ended up.

Do I think Q should beat out Wal-mart on an apple to apple comparison? They should be able to. Are somethings overprises at Q - yes. Can they fix that - yes - they did for Daily vitamins.

Most of the thinks Q has are better quality. Not all of the products, IMHO are good values, but many are.

[rdknyvr]

Moderator, one of our (Alticor and us) "prime directives" should be to maximize "share of customer" across as many consumables product categories as possible, from health to cosmetics, to food/dry goods, sports drinks, etc. To be successful and this is where some smart competitors are starting to eat Walmart's lunch (although I wouldn't write them off too quickly), one needs a range of value options from less expensive, "doesn't matter" purchases to emotional "I want" and also high value products -- always competitively priced and delightfully 'featured' within their value segments.

The book I keep recommending (Trading Up, by Michael Silverstein) addresses this in an interesting way. Alticor is positioned to do this, and that's part of what I anticipate is coming from Steve Lieberman... a broader range of consumables across more categories that are also retail competitive priced. Once you bring in a customer for great health or cosmetics or sports drink products, it's much easer to increase "share of customer" -- what else to they need for which we have an attractive choice of options. And this will vastly grow the PV and $$ per customer.

So a little bit of Walmart and Target combined with high value product choices too, but lets not copycat what's already being superceded by others... Alticor should be creating their own looking ahead business model while becoming a better "learning organization" -- always innovating in both products and business processes in order to delight the customer and maintain loyalty, and to stay ahead of competitors.

But no, I don't want to be "like" Walmart, as good a company as it has been and is. :)

[Chaitanya]

Quixtar has to be just Quixtar - nothing less, nothing more!
Atleast that's what I feel.
Competing with or turning into a Walmart would be futile.
Instead they can make this oppurtunity and the products even better!
I'm thankful they are doing it!
It's natural for corporations and the leadership to be attacked in such situations - and oftentimes they come out much stronger!
'People throw stones at the tree that has fruits - not the one without'em'

[Ken]

Do we want to be like Walmart...just the profits. I do not want to make the profit they do off supporting companies with 3rd world children and below living standard wages.

I am proud of what we do for our local distributors and family's we help in the process.

However, I think Q could help us out with the new people we are bringing in who have been brainwashed by retailers/family/friends that cheaper is the only thing they should be looking for.

I would love to see some high profile non-exclusive items put on a comparison section of a web-page with Q vs discount retailer prices. That would show we are on an even retail before discounts to help them overcome thier fears that we are overcharging them on product price. This would be used for the new person who says I need to see the web page to see if I could sell this to my friends. I know what your thinking...but here is the point; if I can get them over the initial hump of fear the prices are too high I can work with them to develop business mentatlity.

Obviously this not a concern for all new people...but why throw away any of them. We need to offer tools to help the different types of people get over thier concerns to help themselves.

[Ron]

I have an observation and a question. It should be obvious to everyone that the Quixtar business is mainly consumer driven. What I mean by that is the pricing is much better for the IBOs than customers. Don’t get me wrong, there are a few product lines which can be marketed to individuals as well as business entities. I have been at the platinum level on and off over the years. Because of one other IBO and ourselves, 70% of what goes through our business volume at platinum is retail. I realize this is not the norm and most IBO businesses are concentrated on self use. My question is “What is wrong with that?”

I have heard that if we do too much self-use and very little retail we (Quixtar/Amway) is considered a pyramid. Why is that? What is wrong with a “Buying Club.” Does that mean Sam’s Wholesale and Costco are illegal? If there is no profit on sign-up, no front end loading, and new people perceive value on the things they buy for personal use, why isn’t this business simply a “Free Enterprise Business?” People aren’t required to buy products to make PV brackets, they do it because the increase in volume means they can afford more products or make money for use in their family household. Why don’t we simply hold people accountable for their own actions. If they buy more than they can afford, they will do the same through Walmart, Bestbuy, or any other business establishment.

Rather than trying to change an entire culture driven consumerism, why not change or clarify the “law?” Business and distribution has changed over the past 20 years. Why doesn’t the FTC get up to date. I don’t need to be protected. I just need to have an opportunity to increase my income. If it is through a concept that considers me a “Walmart” store, I am all for it. I am simply paid to advertise what I have access to, educate people on the products available (not being done at most retail establishments anymore) and encourage other people to do the same.

The person at the top of this business does not make the most money unless he or she has done the work. People who don’t make money haven’t learned the skills necessary to be successful in a people business. That is the reason for the leadership development programs which are available through each Diamond organization. I will have to admit that some are better than others but all are necessary to reach any major level in this type of business. If you went to school, would you expect to pay for the salary of your teacher as well as the books and media that you learn from? If you expect someone else to pay for it then you will never have a large Quixtar business. You will not be able to duplicate yourself. Why get so uptight about having to pay anywhere from $3 to $6 a tape. The money is used to perpetuate an ongoing resource of people from whom we can learn.

Quixtar, stop maligning Team and other IBOs. You are loosing integrity and credibility with the people you are trying to support. It will be hard enough to overcome the “Amway” name but much harder if the field no longer believes that you have the IBO’s best interest at heart.

[rdknyvr]

Ron, Team has maligned ITSELF... read Fred Harteis' statement on this site. With the exception of some early intemperate posts on the Alticor Blog, Quixtar and Alticor have been exemplary in how they have conducted themselves. :)

Regarding merely advertising what one has access to per your comment above, that may have gotten by in the past but no longer. You've shown that yourself with your 70% or better genuine retail sales, which is fantastic, by the way, and congratulations (and people like you should be the model, not the exception). But future growth must include ultimately a majority of sales on the retail side. Which also means there needs to be some price adjustments on some products, and a much broader range of retail competitive products, which are coming from Steve Lieberman.

Good post, though, and thanks. :)

[chris]

"industry's titan is scrambling to keep up with swifter rivals that are redefining the business all around it"

Lets rest assured that the rivals are NOT!!! making their prices higher, the prices are lower so yes Quixtar, you have just proven what the team has said in a world of "swifter rivals" you can not retail the products that quixtar has

[rdknyvr]

Chris, thoughtfully stated, but still could use a bit more research to actually confirm your point. While Walmart is the biggest retailer, their growth is lagging competitors like Target, as is their profitability. Target, as just one example, has deliberately positioned itself with a wider range of value options, including low price options but also an increasing selection of high value, HIGHER PRICED, higher margin choices, and this is where they are starting to eat Walmart's lunch. And this is where Alticor is moving with the hiring of Steve Lieberman and others, to positioning itself -- a better range of retail competitive products in the middle and lower price point ranges along with the high value, higher priced but segment-competitive, higher profitability lines we already have.

I know you are pretty committed and loyal to your perspective, but there are some addition considerations to include in your calculation. And thanks for your input... it forces all of us to sharpen our own thinking. :)