UNDERSTANDING A BUSINESS MODEL THAT WORKS CAN BE DEFINITELY BENEFICIAL TO THE MLM MODEL
Question: What can Network Marketers learn from the Walmart business model, which is the lifeblood of any business?
Answer: Product movement to the end consumer.
I love putting someone's profound quote in about here, but there wasn't one that applied. One thing I see many missing is how to bring true value to others. I see many network marketers in the MLM industry becoming pushy and "salesy." I am not sure that has ever worked but in today's world it absolutely does not work, its a turn-off, when you want a turn-on. "Attraction Marketing" Is about truly bring value that "attracts" the buyers that you want.
My View for what ever it counts Lynda Cromar
So Lets examine that question a bit deeper:
Have you read Sam Walton's autobiography? His vision, the business model he pioneered, was brilliant. Walton started Walmart & Sam's Club. He said, "We will be the largest retailer in the world." And he achieved this goal because he found a way to move product to the end consumer at the cheapest price. How did he do that?
Walton said, "Do people care when they buy their groceries whether there's an acoustical tile ceiling, or if they see roof rafters and white bar joists?" The answer: They don't care. So he invented a business model where you have shelves with cases and cases and cases of soda pop.
In the evening, they bring that stuff down & fill the shelves. They stock the warehouse for ALL the manufacturing companies, saving those companies a TON of money.
Every Other Retailer Was Left In The Dust
He built massive warehouses around the world. Then he talked to Scott Tissues, Hershey's, Johnson & Johnson, Levi's, all these companies: "Hey! Don't build expensive warehouses all over the place. Ship your products to MY warehouses, I'll store it. As we sell it, I'll pay you."
So when they scan that bar code, Scott Tissues knows Walmart sold 73 cases of paper towels today. The system tracks that sale. At the end of each day, Walmart sends each vendor the money.
Other retail outlets don't have the space - or the vision - to make that offer to suppliers. Instead, they buy the stuff in smaller quantity, store it in the back, and move it to the front as needed. There's no tall, tall, tall ceiling with products stacked way up above you. That's the way it's always been done. But that's not how Walmart does it.
Why Customers Choose Walmart
So Walmart & Sam's Club pay less for identical products than other retail outlets. And they can pass the savings on to consumers, attracting throngs of buyers to their stores.
How does Sam Walton make money with Sam's Club? Off the membership. Again, that and the warehousing of products allow them to sell at a very low price. It's in the business model. Whoever figures how to move product to consumers at the best price, wins. Sam Walton proved that point. How did he do it? He cut the overhead for all those companies, his product suppliers!
What can we use and apply?
How does this apply in network marketing? Look at every company, every compensation plan. Let's say every company pays out 50% of retail to reps. Each product, no matter the cost, they pay 50% commission.
You can only cut the pie so many ways. If you pay 50% commission on $79.95, or 50% commission on the identical product at $39.95. Do you think a $39.95 product makes it much easier to sell twice as much or 3 times as much?
Cut the overhead, and you have a better chance to sell that product. You're not just competing against other network marketing products. You're competing against Sam's Club & Walmart, too. Your business model better let you make a good offer to the consumer, or you'll never succeed.
Whatever network marketing company finds a way to move the product to the end consumer at the best price, wins. And that's definitely who you want to build your future with.
If you would like to read more about Sam Walton here is one of my sources
I would love to share my expertise and help with you, I can share my e-book for free!
Answer: Product movement to the end consumer.
I love putting someone's profound quote in about here, but there wasn't one that applied. One thing I see many missing is how to bring true value to others. I see many network marketers in the MLM industry becoming pushy and "salesy." I am not sure that has ever worked but in today's world it absolutely does not work, its a turn-off, when you want a turn-on. "Attraction Marketing" Is about truly bring value that "attracts" the buyers that you want.
My View for what ever it counts Lynda Cromar
So Lets examine that question a bit deeper:
Have you read Sam Walton's autobiography? His vision, the business model he pioneered, was brilliant. Walton started Walmart & Sam's Club. He said, "We will be the largest retailer in the world." And he achieved this goal because he found a way to move product to the end consumer at the cheapest price. How did he do that?
Walton said, "Do people care when they buy their groceries whether there's an acoustical tile ceiling, or if they see roof rafters and white bar joists?" The answer: They don't care. So he invented a business model where you have shelves with cases and cases and cases of soda pop.
In the evening, they bring that stuff down & fill the shelves. They stock the warehouse for ALL the manufacturing companies, saving those companies a TON of money.
Every Other Retailer Was Left In The Dust
He built massive warehouses around the world. Then he talked to Scott Tissues, Hershey's, Johnson & Johnson, Levi's, all these companies: "Hey! Don't build expensive warehouses all over the place. Ship your products to MY warehouses, I'll store it. As we sell it, I'll pay you."
So when they scan that bar code, Scott Tissues knows Walmart sold 73 cases of paper towels today. The system tracks that sale. At the end of each day, Walmart sends each vendor the money.
Other retail outlets don't have the space - or the vision - to make that offer to suppliers. Instead, they buy the stuff in smaller quantity, store it in the back, and move it to the front as needed. There's no tall, tall, tall ceiling with products stacked way up above you. That's the way it's always been done. But that's not how Walmart does it.
Why Customers Choose Walmart
So Walmart & Sam's Club pay less for identical products than other retail outlets. And they can pass the savings on to consumers, attracting throngs of buyers to their stores.
How does Sam Walton make money with Sam's Club? Off the membership. Again, that and the warehousing of products allow them to sell at a very low price. It's in the business model. Whoever figures how to move product to consumers at the best price, wins. Sam Walton proved that point. How did he do it? He cut the overhead for all those companies, his product suppliers!
What can we use and apply?
How does this apply in network marketing? Look at every company, every compensation plan. Let's say every company pays out 50% of retail to reps. Each product, no matter the cost, they pay 50% commission.
You can only cut the pie so many ways. If you pay 50% commission on $79.95, or 50% commission on the identical product at $39.95. Do you think a $39.95 product makes it much easier to sell twice as much or 3 times as much?
Cut the overhead, and you have a better chance to sell that product. You're not just competing against other network marketing products. You're competing against Sam's Club & Walmart, too. Your business model better let you make a good offer to the consumer, or you'll never succeed.
Whatever network marketing company finds a way to move the product to the end consumer at the best price, wins. And that's definitely who you want to build your future with.
If you would like to read more about Sam Walton here is one of my sources
I would love to share my expertise and help with you, I can share my e-book for free!
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So today make a decision, That you are going to take some steps today and change your life, one step I took is read this e-book, it was a life-changer, permanently!
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I am here to help anyone who wants to create a second stream of income from the comfort of their home |
I was frustrated til I read this:
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to your success
lynda cromar
303-386-4666 ~leave message/ will return~
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