I'm sure you've heard this question: Why the products are top network marketing company so expensive?
This is one of those ubiquitous questions, the networker and direct sales forces also continue to deal with (probably) forever - and there's always something more is a simple answer.
A key is not the side step. There are good reasons for legitimate and real, high-priced products and, of course, there are more expensive as well. Honesty is the best, asever, and try to give you the general truth of my answer to the question.
Special products at special prices
First, the products available through the company network marketing top sales model is primarily the so-called "products" of specialties. Products are more expensive to begin with more expensive ingredients and complex designs or formulas, they are just more expensive and packed. Some unknown market networkExamples include Clinique perfumes and makeup, Apple computers, iPod and iPhone, Armani suits, Mercedes and Lexus.
Unless it is a scheme or a scam to beat their more premium products at affordable, off-the-shelf counterparts, providing services to consumers more and better. Because they have more value, which cost more.
If these products are outsourced by the Network Society (produced by a "foreign" seller / supplier), whichtend to be produced in small production runs do not allow all the best performance and low cost of acquisition and decision making in large quantities, the masses enjoy marketing. The production processes are increasingly complex and exclusive. The profit margins are higher. This leads to a product of superior quality with greater attention to detail and quality control.
The reason for manufacturers and marketing companies to choose network marketing and direct selling is because these more expensive productsare of superior quality, and therefore require special methods of distribution and sales.
In short, they can not compete with cheaper, lower quality "commodity" products, sold primarily to mass market price and discounted brand awareness alone. Think Wal-Mart and Costco.
Special products are "education-intensive". They need more explanations, for example, by the formula, the ingredients and / or process the product more expensiveMass market products available through direct response marketing (such as Internet and mail order) or selling the retail chain. Many require demonstration.
Mass products depend on advertising for tobacco purchase, promotion and merchandising at the point-of-", which are all needed to get consumers 'attention' to let them know the product exists (for the creation of" procedure " especially if it is "Brand New), and a lot of compelling reasons to buy and maintain, for the purchase.
GoingYou head to head with nationally advertised products, many of those most heavily discounted and sold at the lowest possible price, which is a tough game for almost all small businesses to win. Imagine trying to sell vitamins or diet drinks, or "prestige" cosmetics against one of the largest sales from Wal-Mart, or a natural toothpaste from a tube of Crest ® by Kroger or Publix supermarkets.
Special products are the ideal person to person,Information-rich training, demonstration and service-oriented methods of network marketing.
It is here that the second important aspect of marketing the highest price of the network is "coming into play: the added value which is sold as a dealer" with specialty products that you take.
Added Value Added
Network marketing and direct sales representatives significant added value to the product they sell, and are well paid, if at allsuccess.
You reach the consumer awareness of new products and services, display and merchandising - no matter how convincing or promiscuous - would not be possible to reach and touch. And through our one-on-one personal relationship with our customers, we appeal to them was with a certain degree of trust and not a mass market service, hoping that the suppliers of retail products, to compete with.
Extraordinary level of network does not offer marketing services available whenbuying by mail order or retail. This is a real and tangible benefits, a part of the value of the product - and its price.
For example, someone tries to install an anti-health network marketing of aging. And 'personally introduced to them - in person or via e-mail - with a variety of educational materials about the product: scientific studies, the article reprints, books, cassettes or even explain the origin of the product was manufactured, as is, its unique characteristics, andits advantages.
Questions within a day or two to monitor the marketing network of new contacts with the person, how do they verify that customers use the following instructions correctly, make recommendations, attached. The service continues to call daily, weekly or biweekly, until the customer is satisfied and happy.
The marketing of the network will continue to be the informational and educational materials, such as sending updates from the scientific literature. He or she also Rentthe customer about other products offered by the company that the customer can use its individual needs and requests to enjoy.
This is an exceptional level of service that is a real and tangible benefits for consumers. This type of personal and professional care is not available with purchase only via the Internet or e-mail-order or almost all sectors. And 'one of the things that the marketing network is paid, and is part of the product' sValue - and its price.
There are cases that are not offered in which the higher education and service? Of course.
There are products that do not support on specific components or properties that a higher price? Sure.
And there are times when a network marketing product simply more expensive to pay for the multi-level structure of the Commission? Yes
Back in early 1950, a dog care service was inaugurated in New York City, to serve people in exclusive ParkAvenue, 70 to 80 Roads area. You pay $ 25 for shampoo and clips of a dog. They had no customers. Then jacked their prices to $ 250 per visit - and was an immediate success. Cadillac Seville, the first test launched in the showrooms below the market U.S. $ 10,000 bombed a price, 14,000 $ in the same car was an immediate best-seller.
The value is a perception. The relationship between quality, performance and price, ie, the value is in the mind of the consumer-spectator. CompanyValue of goods and services after, so expect the market. Marketing success with the right mix to come from a value-benefit-cost approaches.
Most network marketing direct sales of products are higher quality, no real variety, commercially available, the special ingredients, design and production.
Most of them offer the comfort of your home or on-line ordering and delivery-door. I am also particularly as regards ...
Marketing and CustomerService
The sales network "seller" to add value to a product through its education, service and distribution to the customer.
All this has its price. And in general, consumer trends and the explosive growth of the commercial network of direct sales companies and their products, more and more people think about it every day, it's worth it.
What is being offered for the truth about the price of products through the marketing network? Are too high? And if so,why?
The answer to this is complicated. If you need a short, is mine;
High? In general, yes.
Too high? Sometimes ... Yes, but usually not.
So, if you are high, why? We begin with a vision of what kind of products they are really talking about.
The truth is that the products cost more Specialty
Network marketing has been primarily the "special products" of business: the products we sell is usually not more than type'll Find in supermarkets, drugstores or mass merchant. You're not the type that connects the lowest price possible for the minimum acceptable quality. For a parallel to traditional retailers, check out products in a salon or natural health food store, beauty, luxury boutiques and department stores.
Specialty products more expensive. The ingredients are unique and of high quality and quantity of production is lower - the quantities produced are generally not large enoughBenefit from economies of scale through the great time, high-volume, mass-producers' market share. So that these products are more expensive to do - both on and buy.
Also responsible for special products generally do not have to increase advertising sales large, have more money. So I'm forced to use more expensive forms of distribution, such as small, individual shops, whose profit margins are higher than market stores and mass chains.
Profit margins andMarkup
An example would be: A pharmacy discount chain can be used to produce a bottle of vitamins that are normally sold for $ 3.00 wholesale for less than 33 percent of the normal margin of retail. Why buy in large quantities, are the product for less than $ 3.00, received from the beginning.
A natural food store or health could be that a product is purchased at full price $ 3.00 wholesale, and the use of a premium of 50 percent on the retail value of their money in 33, 3 percentThe margin of profit.
For consumers, buying from a dealer, that's the difference: $ 3.99 to $ 4.50 in pharmacy and health food store is.
And then there's "what will bring the traffic."
There are boxes of chocolate sexy imported, which go for $ 38.00 each and poly bag with 50 mini-Reese's Peanut Butter Cups, you can get for less than $ 3.80. If your taste tends to be expensive, usually pay more - in "margin" percentage of middle-man and dollars in total.
Let's take a lookA comparison of a single product offered by the conventional manufacturer-to-dealer distribution system and the same product marketed through the network.
$ $ $, From producer to consumer conventional
We know that making special products more expensive, once again, the ingredients are unique and of high quality and quantity of production is low, so that only more expensive.
The producers talk about "Cost of Goods (COG) isthe figure that a product is to make the company's costs, including overhead, ingredients, packaging and labeling), commissions (eg, brokerage commissions, etc.
Sell at least one manufacturer, the product is for double, or a margin of 50 percent. Since most competitive firms operate on a six per cent before tax, which leaves 44 percent of everything they pay for. , The product CoG $ 2.00 to sell for $ 4.00.
Now,Some manufacturers sell directly to retailers - not many do, but few, and if they do, you will have a higher profit margin to pay the cost of sales (CoS) for sale.
Most companies employ more than distributors, the costs of storage, transportation and sale of goods to retail outlets. Large regular is 25 percent markup, which is obtained by multiplying the purchase price - plus shipping, if not included in the price - of 1.33. Thus, our voice of $ 4.00, with a wholesaler may be soldthe retailer for $ 5.32. (Again, plus postage or not, that can run 10-15 per cent more).
In order to achieve a profit margin of 33.3 percent, the dealer has a 50 percent mark-up - or higher. Our product ends up $ 5.32 to $ 7.98 on the shelves.
Well, this is the minimum scenario - not what usually happens only in the most competitive markets. Not at all unusual for producers who sell CoG $ 2.00 for $ 5.00 or $ 6.00 to ... theTraders work on 35 percent instead of 25 percent ... and a retailer - especially a market segment of specialty - that is, you are looking for a profit of 50 percent (to 100-percent markup), instead of "only" third.
And if all this were true, the selling price of the product through this distribution system would be like $ 14.95.
$ $ $ In Network Marketing Direct Sales
Let's work this is back (for this, as most of the figuresaccounts) for the commissions.
If the networking company product sold to consumers for $ 15.00 there will be an average selling price from the Commission to networkers from 20 percent to 40 percent. Then using a 30 percent retailers Commission, the company will be the "wholesale" price that the dealer mlm about $ 10.50.
Suppose that your company pays for a total of 50 percent of "downline" or organizational costs. This means that the company is the lowest since the stock-price -Product would be half the wholesale, or $ 5.25.
What is right in the ball park for the manufacture of specialty chemicals, distribution and sale.
This is a question of price --
There is also a greater value on "Special Products" Ask the quality of ingredients, manufacturing costs and so on, and that education, information and the service rendered by the person is a person-to-sales network.
Arriving at the 's products are used properly,further uses, history, everything about the ingredients, outbuildings, all this is part of their value this book. Even products that are offered through the word-of-mouth marketing network have more of this "value added" than any other.
This last point raises the question:
"The products purchased through the marketing network to higher prices for compensation or commission payments to dealers and their networks?"
Can it be? Yes
Are ... in general? No and yes.
In aauthentic, intelligent, honest and reasonable network of direct marketing companies selling that well-managed and ... a company that understands the need for the health and financial well-being, leading to one of the men and women in their tasks, decisions, strategies, policies and procedures ... no.
But the new headquarters in the prestigious position of prestige ... corporate jet ... an army of "Service dealer" personal ... Rock Concert "convention" ... $ 50,000 "big name"Keynote speakers ... Holiday Resort Cruses incentive to exotic places for the amount paid by the company ... Luxury car logos ... are all issues that must be paid. Where does the money?
Directly (in terms of potential fees are not paid to people) or indirectly (via low-priced products and / or excessive costs for marketing materials, self-replicating web sites, tools and construction companies) training, money is only one place ... men andWomen in this area.
"So ... do the commercialization of network products cost more?" Sometimes yes and sometimes not.
May be more expensive than similar products of equal value in a conventional market, such as offering a dealer? Yes you can.
Can, in fact, you will find numerous examples of both is usually sold in the area of retail products and products with a network of similar size, shape and quality at prices as much as 30 percent to 40 percent or more varied.
The only rule of safetyPrices in the world is: "What does the market ..." Never mind that the path of travel distribution and sale of the product. It is not so much the game of "Let the Buyer Beware" as it is and always will be ...
"Let the buyer be aware."
Factor at-home shopping convenience ... Customer Service ... Satisfaction guaranteed ... personal attention ... Education and information and today's increasingly competitive global marketthe "aggressive pricing", an attitude that more and more networks of companies around the world, together with generally high quality of products available through network marketing and direct sales ...
... and I think that a growing number of quality-conscious consumers will agree with me products, top network marketing companies are an excellent value.
