This is one of the few posts in which I criticise Amway rather than my upline.
The subject of today's discussion is membership fees.
Our sack of rotten muck Platinum would spout nonsense about how Amway and Costco are no different than one other because both organisations demand a yearly membership fee. And then he'd smirk and say something like, "At least with Amway, you get your money back."
A Costco membership costs $50 per year. There are two options on the home page of their website that may be clicked to get more information - membership and join the club - and this information is clearly available.
It is much more difficult to find information about Amway's membership fees. Go to their website and click on link after link after link till you reach the end. I finally located a pdf document describing their business opportunity, and on page 13 I saw that the registration fee has increased to $62, indicating that the fee has increased since we first signed up a few years ago. And it's carefully concealed.
It is not too difficult to become a member of Costco Wholesale Corporation. It is necessary to go to a store and fill out a membership form, as well as to pay the annual cost. Alternatively, you can do it online. The yearly membership fee at Costco is valid for one year from the date of purchase and is automatically renewed one year later.
Amway is a more difficult opponent. You must be sponsored by an existing IBO in order to participate. The annual membership fee is required at the time of registration and must be renewed each calendar year. Consequently, if you become an IBO in July, you will be required to pay your yearly membership fee at that time, and it will be due again on January 1. There will be no proration. The payment is not required on the anniversary of the date of signing up.
Products at Costco are often name brand products that can be found in grocery stores, but Costco sells a lot of their food in warehouse or bulk packaging, making it a good option for large families. When comparing unit costs, it is less expensive than purchasing from a grocery shop. Unfortunately, this means that you either have to fill up your pantry or feed a huge group of people, which is a hassle. Costco also sells a variety of other items, such as electronics, apparel, household goods, sports equipment, tyres, and books, that are not available in bulk at other stores.
Remember what I wrote above about the Platinum bag of shit sneering about Costco memberships and how you don't get any money back? He failed to explain that with Amway memberships, you must spend at least $300/month to receive a cheque for approximately $10 in return. Amway compensates you in this manner for your purchases.
Costco offers a membership where customers can earn money back if they cancel their membership. Spend $100 on the annual fee for the enhanced card, and Costco will send you a check for 2 percent of your purchases. There is no requirement to spend a certain amount each month to qualify. So if I go to Costco and spend the $300/month that I have set up for Amway, I will receive $6 in return. What makes a significant difference is that by shopping at Costco, I have also saved money because their merchandise is heavily discounted. I'm also likely to have purchased items that I will actually use or consume. I am not going to Costco only for the purpose of purchasing items that I would not typically purchase or for which I have no need in my everyday life.
Let's return to Amway for a moment. Is it possible to save money by purchasing there? Nope. Despite the fact that it is a part of their crap propaganda campaign. Similar to the BS about their items being of great quality and hence justifying their high price. Similarly, If I can find laundry soap for $7 at Costco that gets my clothing clean, rather than $40 for the same size of laundry soap from Amway that does the same job of getting my clothes clean, I'll take the cheaper option. Is it mandatory for me to purchase items from Amway that I would not ordinarily purchase? Yes, without a doubt. The upline puts pressure on us to purchase items with a high PV, such as vitamins, energy drinks, snack bars, and other nonsense that I would not ordinarily purchase. The upline puts pressure on us to buy more, more, more of this worthless trash so that someone higher upline can accomplish their target for the month in which we are now working.
Amway customers spend an average of $400 per month on their purchases. Usually, there is more. It has reached as high as $1200 in a single month. Most of the time, I'm buying worthless crap.
My average Costco shopping trip costs me $100, and I don't go there every month like I used to. The things that I purchase from them are ones that I genuinely use.
So, is it worthwhile to pay the annual membership fee?
When you factor in the cost of the yearly membership price at Costco and the fact that customers often save at least the $50 membership charge each year that they would have spent elsewhere, it is usually a worthwhile investment. When I originally joined, Costco was running a deal in which new members received a $25 gift certificate, so it was absolutely worth it for me to invest the money in the first year. My business involves a lot of entertaining, and no one can compete with Costco's costs on large cakes and salads, as well as frozen burger patties and other party foods that Amway does not provide.
I'm not a fan of any store - and yes, that includes Costco - that charges customers an annual fee simply for the right of doing their shopping at their location. I'm surprised that Costco hasn't lowered their membership fee yet. In this day and age of online shopping and price comparison, it's possible that this will be the case in the not-too-distant future. I mean, why the heck do they have to demand a yearly fee in the first place? If you have reasonable prices, customers will come to your store and shop. Individuals will continue to purchase at Costco even though their prices have been somewhat raised to compensate for the lack of annual membership fees because the prices are still lower than at their local grocery store.
Similarly, Amway charges an annual fee. Except for the fact that Amway does not offer competitive pricing on its items. Costco, on the other hand, charges a larger membership price.
Costco appreciates it when people shop at their stores since it generates revenue for them. However, the company does not utilise bully methods to compel customers to purchase from them, nor does it strongly suggest what customers should buy once they are in the store. Unless you consider the person who is stationed at the front door handing out coupons for the upcoming week's best deals on certain products.
Amway? Bullying techniques from the top to get you to shop at the store? Absolutely!
It is a cash cow for any store that charges a yearly fee to patronise their establishment. So the bank accounts of the owners are credited in this manner. In my opinion, both Amway and Costco have customers that renew their memberships every year but do not conduct any business with them. Talk about free money for the proprietors with little or no work on their part. For example, Costco customers who do not shop there often often renew their membership “just in case” they come across anything they would like to purchase there during the future year, which happens rather frequently. An IBO who otherwise does not do anything with Amway may be persuaded to renew if there is Amway pressure from someone higher up in the organisation. Ridiculous. The IBO in charge of the upline does not get any compensation from the membership payments collected. They are merely assisting the Amway owners in obtaining further free money.
Thus raises the question of how it is that, towards the end of the year, Amway IBO's pester IBO's to renew their membership despite the fact that they make no purchases, do not attend meetings, and do nothing else at all. What really is in it for them? Is Amway's leadership gushing over the company?
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