Saturday, June 5, 2010

The Gist of Melaleuca

By direct marketing (cutting out advertising and middlemen), Melaleuca not only pays its customers, it makes superior products affordable.

Tide depends on Walmart shelf space to survive. Walmart demands perceived quality and low price at the same time from its suppliers. The suppliers, who also pay big for advertising, are forced to water-down and cheapen their products to profit. Yet Walmart demands Tide to increase its concentration. That is why Tide recently did so. They made it 2x concentrated compared to Melaleuca's 6x. But it still contains stuff you wouldn't want in your house or ground water, wears out your clothes (causes lint), doesn't clean as well as Mela Power, etc.

People essentially commit to buy Tide or something of lesser value every month and all the advertising that goes with it. They do so without realizing it because it is traditional marketing. It seems like they are free not to buy from the store regularly, but what are they gonna do - wash their clothes with something home-made? Something from the co-op that is less effective and costs more? Something on-line that they have to go searching for, that is less effective and costs more? Not when they can get it all at one place, pay the same or less as the store and get the superior brand in virtually every product.

We have been regular customers for 5 years, unemployed for 2 of them. We pay less than we used to and we never get behind in nor ahead of our Melaleuca 35-point commitment. Depending on their lifestyle, many single people can say the same - especially if they are into superior vitamins and supplements. When 8 of your friends sign up, you get it free anyway.

Direct marketing also enables Melaleuca to stay in the black as they pay cash for all of their state-of-the-art research and facility capital. No other company does that. It spells "staying power."

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