Saturday, July 17, 2004

Shopping Habits

Just the other day I went to Wal-mart to purchase a new computer chair. Before doing so in an effort to try and purchase items from the quixtar website I checked out the prices of office chairs on it and couldn't find anything in a reasonable price range for me, hence why I went to Wal-mart and purchased a descent leather chair for about $50 which was about half the price of the cheapest chair I could find on the site. Later that evening a team member on my roommates second leg came over and noticed my new chair and inquired as to where I purchased it. My roommate immediately replied Wal-mart not from quixtar and kind of gave me a stern look and then so did the team member. He was trying to make me feel guilty for purchasing a damn chair from a store. This seems to be pretty standard fair for people on the team to do. Your taught to frown upon other people for buying anything unless its from quixtar/your own business. Now I have absolutely no problem buying anything online but the prices on quixtar are ridiculous on most things. I remember being told why this was and the reasons they used(this being on the household good such as soap and that) were that the products were concentrated and you get more uses out of them. Well working at a grocery store for almost 6 yrs now come November, I can tell you that all your household cleaning solutions and soaps in the grocery store are concentrated. The true reason for the ridiculous prices on quixtar I believe is there distribution model.

When I was first introduced to the business they showed me the distribution models of Kmart and there long line of distribution. Then they showed me Wal-Marts and how they cut out a few things in there distribution model and were able to become the biggest company in the world. Then there was our model/Quixtars. Our just had 3 parts Manufacture-Internet/Quixtar website-Consumer. I believe the way they explain the Quixtar model to be untrue. This because if that were true they would be able to have the cheapest prices on just about everything. But instead what they don't tell you is that all the IBO's in the chain need to get paid and that I believe is what makes the products so expensive. Everybody has got to get paid. So the True Distribution model would look like this Man. - Internet - IBO's-IBO's-IBO's- etc. -etc.- consumer.

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