THE JAY FACTOR LEADS TO AIR FORCE

Click here to see the Amway Air Force

The JAY FACTOR is out of the bag. Amway / Quixtar's pricing model is now receiving a lot of scrutiny. Quixtar's refusal to change in the face of changing markets and aggressive retailers leaves it open for criticism. I can't tell you how ironic I find all of this. Some things in life don't make sense and Quixtar's position is one of them. Walmart has proven making less per item is a way to make much more money overall. Volume is as important as margin. Quixtar could easily drop the party store like pricing and adjust their business model with great success. This would be better for IBO's and ultimately the business itself.

Obviously, the Devos family has been very active in Republican politics in Michigan. To me this volume / margin argument is very similar to that of taxes vs. revenues. It has been proven repeatedly that lowering taxes actually provides greater revenue for the Government. So why is Quixtar so off track on this topic?

I propose there are two reasons for their position. The first is a complete lack of vision for what Quixtar could really be with the right leadership. The second is that the families that own Amway / Quixtar no longer have that entrepreneurial spirit. Instead it has been replaced by a protectionist philosophy.

A retired individual in his 70's would tend to own less volatile investment vehicles with lower returns and avoid more aggressive investments with higher potential returns. The older investor merely wants to preserve capital and keep enough money flowing to preserve his lifestyle until death. This is exactly the way Quixtar is being run. The families aren't looking for some home run, or to do something great. They simply want to manage risk and keep what they have. This explains Quixtar Legal's overbearing presence in the Quixtar world today. The "I got mine," philosophy is in place and here to protect current assets.

At the end of the day, Quixtar no longer provides a real opportunity worthy of attention. As I have heard several times in my life, "You either take advantage of change or change will take advantage of you." Quixtar has made it's decision not to change. Decisions have consequences. If you missed it at the top, take a look at some of these assets at this link to the Michigan Caucus web blog.