Quixtar Update – not quite what TEAM wanted

Quixtar.com today posted an update (reproduced below) about some changes coming in the near future. In the context of some of TEAM’s complaints about wanting price decreases … well, it’s quite interesting reading. In summary –

  • one discount available – case purchases – is being removed.
  • most products will remain the same price, only a few will increase
  • shipping rates will increase!
  • the new product lines will be Simply Nutrilite™ foods for people on the go who care about their health and Artistry® Essentials, a natural colour cosmetics line

So, in contrast to TEAM’s desire to have prices drop, they’re staying the same or going up. TEAM wanted products to compete with WalMart, instead Quixtar is introducing more Nutrilite and Artistry products – premium quality brands.

Feedback I’ve had already is that the Simply Nutrilite products will be very well received, but it’s clear that these changes are nothing like the dramatic changes TEAM was demanding.

To my mind it’s quite clearly a difference of philosophies is ultimately behind this split –

  • TEAM wants to compete with WalMart
  • Quixtar wants to be the best in Health & Beauty

It’s really a fundamentally different approach. As an entrepreneur, I’m impressed with the vision of Woodward and other TEAM leaders, but as a businessman who has had businesses both succeed and fail – I’m happier, and more secure and confident, in the Quixtar approach.

Still, Quixtar obviously can always be improved. We await information on the actual products being launched and their pricing (and hence retailability) and still no news on the branding improvements to the classic SA8 and LOC lines that were hinted at by Beth Dornan on the Opportunity Zone. I think a marketing resurrection of those lines could truly help new IBOs get retailing more easily.

And as for the shipping? Oh dear …. that does need some work.

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Update on pricing, shipping rates, BV:PV ratios, and Choices

Please read about changes coming October 27.
Effective October 27, Quixtar will make some adjustments in pricing and shipping rates. Note, however, that BV:PV ratios remain the same for the coming year. In addition, there are some interesting changes to the upcoming Choices catalog.

Pricing

We’re happy to announce that most product prices will remain the same for the coming year.

Please note, however, that case-discount pricing will be eliminated, effective October 2, 27. As our business has moved from Standard Fulfillment to Direct Fulfillment, we are eliminating the case discount. Today, most products that are offered in eaches and cases have little case volume, so we no longer have operational efficiencies in offering cases.

We continue to work diligently to minimize raw material, packaging, and manufacturing costs. These efforts, along with the elimination of case-discount pricing, enable us to implement price increases on only a few products.

Shipping Rates

It is necessary for Quixtar to increase shipping rates due to U.S. Postal Service, UPS, and FedEx rate increases as well as climbing fuel costs during the past year. Be assured that Quixtar will continue to pursue delivery and carrier options that will minimize costs. However, due to these increases, the value-based delivery rates will increase approximately 5%, effective October 2, 27.

BV:PV Ratios

There will be no changes to BV:PV ratios – the amount of BV per 1 PV – this coming year (September ’7 through August ’8). The BV:PV ratios effective in September will remain the same as the current ratios shown below.

Products Current Ratio

Full-BV products 2.9

Store For More® products 2.4

Coffee, Tea 1.6

Ribbon program 1.2

Choices Catalog

Consistent with the previously mentioned date changes to October, the Choices Fall 27–Winter 28 catalog will be moved from the September to the October polybag. By doing so, we can include the latest, greatest products for you and your customers. What’s been added? Exciting, new health and beauty products for busy, active lifestyles: Simply Nutrilite™ foods for people on the go who care about their health and Artistry® Essentials, a natural colour cosmetics line!

We’ve also pulled the Options products from Choices and given them their own catalog. The all-new Options catalog will be ready for you in the September polybag mailing.

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