Price Cutting

Discussion in 'Network/Multi-level Marketing' started by Metro Mini, Nov 19, 2013.

  1. Metro Mini

    Metro Mini New Member

    Hello all.

    Just signed up, so would like to start by saying hi to everyone here :)

    I do have a question, similar to one I asked on another MLM forum, so if there are any members on here that are also on there, please forgive my repetition of the topic.

    I work for an MLM company, and it has come to my attention that a lot of our products are being sold in retail outlets and via the internet at below wholesale price, which I believe is a serious problem, especially for new members wishing to join the company.

    I was informed on the other forum that this is probably a result of distributors who are higher up the ladder 'buying their cheque/check'. The company which I work for strictly prohibits this action, and it would be instant termination if a distributor was caught committing such an act, but it seems to be extremely difficult to control.

    My suggestion was to change the labeling on the box, where the company guarantees it to be a genuine product if purchased from a recognised distributor, so as to put an element of doubt in the customer's mind if there are buying it from another source at a reduced price.

    Contacting the people who are selling the product, and asking where they got it from, is just met with a wall of silence, which is understandable in some ways.

    Does anyone on here have any suggestions as to how we could prevent this from happening? or is it just a flaw in human nature that some of us are unethical in the way we operate our business/lives?

    Thanks for reading, and any ideas would be most gratefully received.

  2. Just2EZ

    Just2EZ Moderator

    Boy does that hit home, happened to me yesterday and kept me stewing half the night.
    But the problem is not just the seller or morals, the company is more likely at fault.
    Some MLM companies encourage loading up with inventory to reach a "level".
    Then you have the members who rarely read or understand the TOS policy.
    They may think they can sell it anywhere for whatever price they can get.

    In my case is was a multitude of fails by the company with a 3 yr customer.
    First the toll free order line said "all operators are busy, call back later"..
    then the company website rejected her order due to duplicate accounts.
    (The 83 year old customer failed to log in with her old account.)
    By then she was so frustrated she bought it on eBay for $1 less.
    The eBay seller was violating the company TOS unknowingly.
    None the less it cost me a customer and friend for now.

    Solution? Yeah, good luck with that.
    Many companies put profits first and don't enforce the TOS strictly.
    They only respond to problems that cost the company money.
    It's up to the vendors to report TOS violations or complain.
    Management is too busy making money to police TOS.
    Once they lose their major vendors they may care.
    I feel your pain.
  3. Metro Mini

    Metro Mini New Member

    Thank for your reply Just2EZ.

    Sounds like it's just a waiting game now. Once the problem is big enough, it might get looked at. Closing the stable door after the horse has bolted, so to speak. Let's hope it's not too late by then, although usually it is :(
  4. PeterMFL

    PeterMFL Active Member

    Wow that really sucks... Defeats the whole purpose of joining the company i think...
    I can't really see people succeeding that way but hopefully you can make it through...
  5. Rob Fore

    Rob Fore New Member

    I think you'll find that happens in virtually every company that sells a product. You can and will be able to find the same products on eBay and other classified sites for less. No way around it and I doubt the problem will ever be solved.

    But let me ask you this... why care?

    You are looking for people who are looking for more now... and most of those people have NO CLUE about your product, service or business opportunity. None. The goal is find out how you can best serve them, then serve them.

    If you intend to retail the products - same thing - most people you approach should be those who have somehow indicated they would be interested in the BENEFITS of your product or service. They want to lose weight or save money on their phone bills. They DO NOT YET KNOW about your product or service and when you finally share it with them... I doubt more that .0001 would ever think to go look on eBay to see if they could find it cheaper.

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