Best Buy - How do YOU get it
Best Buy - How do YOU get it
How do YOU get the best buy?
Buy online?
Buy direct from the manufacturer?
Buy discounts or discontinued lines from the wholesaler?
Buy direct from the Distributor?
Buy Retail?
This question relates directly to the fact that in school we are not taught a lot about how business works. I've talked about this challenge before and will probably do so again, however, today let's find out how YOU get the best buy.
It doesn't matter if we are looking for computers, cars, books, natural health products, gas or flowers, the standard manufacturing distribution network looks like the chart below:
A Manufacturer produces a product.
The product makes its way to a Warehouse to be packaged and shipped.
A Distributor receives the product re-packages and in many cases re-labels the product for shipment to local distribution points where it may be re-distributed once more for shipment to various merchants.
The Retail Store stocks, promotes and sells the product.
YOU buy from the retail store.
CHART (click on this article at my Website for chart)
The Internet and introduction of online marketing has thrown a few new wrinkles into the process, however, it has not really changed the distribution network all that much.
The major cost of most products that we buy is advertising and promotion Advertising and promotion is done along the entire distribution chain and usually ends up being 50% or more of the price you pay. Online buying hasn't changed that, we just advertise and promote differently.
Why do you think Facebook, which started out as a profile page for college students, is valued at more than $20 BILLION? Advertising! There are advertisers that pay millions to Facebook for the opportunity to sell YOU something. And there are also small advertisers that pay a few hundred or thousand to Facebook for the same opportunity. It all adds up.
Why do I bring this online selling into the discussion? Because, I want you to know that the Internet and online buying has not changed the distribution network. The Computer becomes the retail store. Your first reaction is going to be that's not true. I'm getting my "stuff" through an affiliate of the manufacturer. Stop, think, breathe. Look at the chart and just change the names to fit the online marketing model.
However, that does not address the question. The answer to the question is that YOU get the best buy when you buy directly from the manufacturer. Network Marketing and Direct Selling companies like XanGo and Avon allow you to do just that. Rather than pay all that money for advertising and promotions, which are often ineffective, they pay the money directly to their "distributors" who use word of mouth advertising to their friends, family and associates to spread the word about their products
The network marketing distribution network looks like this (follow the green arrow):
Chart (click on this article at my Website for chart)
So how do you get the best buy? You become an independent distributor, for products you use and buy directly from the company. You're now buying direct from the manufacturer. That's good, however, you're still paying the wholesale price. Remember the example above where I told you that normally 50% or more of the retail price of a product is due to advertising and promotion expenses. Now you are buying direct, how do you get all or a part of what would have gone for advertising and promotion?
When you belong to a Direct Selling company, like Avon, you can sell products and earn income based on the difference between the wholesale and retail price of a given product. When you belong to a Network Marketing company, like XanGo, earnings are based not only on your sales, that is the difference between the wholesale and retail price of a given product, but on the sales of those people who you have invited to be a part of your business team spreading the word about the products that you all buy and use. Your team can often be associated with you through many levels of friends, their friends and other business associates.
All of this is so logical it makes you wonder why we weren't taught about it in school. It is just common sense, you like and use the products or you wouldn't be buying them, you're just looking for the best buy. The company that makes the products wants you to buy direct because it is so much more efficient and productive. And the company will pay you, rather than an advertising company, to have you encourage your friends, family and associates to use the same products you use. The only question you will be asking is which company has the products you will share, is the easiest to work with and will pay you the most money.
In my opinion that's how you get the best buy. If you are looking for home business ideas make it a home business and work from home, with all the personal and professional benefits that provides. For a natural networker like me, buying in this manner and living the life that it can provide, is what living is all about. Contact me if you would like me to expand on or clarify any of this material.
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