Wednesday, September 19, 2007

H.A.M. still upset with Q'!!!

Tuesday, September 18, 2007

H.A.M. seems to have created quite a stir by merely reporting Amway / Quixtar's own reported sales numbers. Only in this discussion could Quixtar and their puppets get upset about their own numbers. Amazing. So how does Quixtar stack up in the real world of business? They love to spin things to make themselves look better than they are. In 2003 the Detroit Tigers had a record of 43 wins and 119 loses. This was by far the worst record in baseball. If we apply Quixtar logic to the Detroit Tigers of 2003 it would go like this: The Detroit Tigers finished the season with 43 wins and are the best team ever with a .265 winning percentage. I am all for making lemonade out of lemons but reality gets lost along the way with Q.To give you some perspective I have included a graph of two other companies to see how Quixtar's 1 billion dollars in sales stacks up to other companies. Global sales for Alticor (Amway and Quixtar combine) was 6.3 billion. This is after approximately 50 years in business. Quixtar / Amway is represented by the line only called Quixtar. According to the site some 70% of Amway's sales come from Asian markets. Could another name change be on the horizon? Maybe Asway? The two other companies used were Walmart and Office Depot.I can already hear the cry babies now. How can the IBO REBELLION use Walmart for a comparison? It is my post so get over it. Secondly, the words "number one" comes out of Quixtar's mouth all the time so lets compare them to a real number one. I know this is difficult because according to all the ambackers out there, Amway deals in premium products and Walmart deals with white trash brands. Again, I remind you that quality abounds in the the U.S. market place. If it isn't quality it is out of business. Something Alticor will find out about. Obviously, Walmart is a small margin (3%), high volume business model. This is the exact opposite of Amway (17% margins or more). Again, the market will decide who is right. In short here is the story of Walmart sales. In 1979 Walmart had 1.2 billion in sales. By 1996 Walmart had it first 100 billion dollar year with sales of 118.1 Billion. By 2005 Walmart had sales of 312.4 billion. The graph provided for Walmart only has data points for 1982 and 1989. In order to provide a smaller graph and keep Quixtar's anemic figures on a detectable graph, nothing above 28.5 billion dollars is displayed.Office Depot was founded in Florida in 1986 and had three stores. In 1986 Office Depot reported sales of 2 million dollars. Amway had been in business for some 27 years at this time. This would commonly be called a head start. Two years later in 1988 Office Depot reported sales of 132 million dollars. In 1990, Office Depot opened its 100th store and reported sales of 626 million dollars. One year later in 1991 Office Depot reports sales of 1.3 billion. Fast forward to 2006, Office Depot celebrates it's 20 year anniversary with reported sales of 15 billion dollars. 15 Billion!, isn't that close to 15 times that of Quixtar and more that twice that of all of Alticor's 6.3 billion? Quixtar lets on that Office Depot is partnering with them. This may be semantics but they act as if they are the big dog when they clearly are not. The graph for Office Depot reflects only the data points I mention here in this paragraph. The rest are estimated.In closing you can see the difference between companies with leadership and ones that flounder in the sea of mediocrity. I purposely include Office Depot here because of their relationship to Quixtar and that a company with a limited offering of products (office) handily dwarfs a mediocre company offering a wide variety of items. I have not studied Office Depot's business model extensively but say it is yet another safe bet to conclude they are a high volume low margin retailer. It is really no wonder IBO's are running away from Q. People looking for a business opportunity must have products priced to compete with companies like the Walmarts and Office Depots of the world. Spin or no spin.
Posted by The IBO Rebellion at 9:44 PM 13 comments