Following are the results of three surveys comparing the prices of a number of store products and the same or similar products sold by Amway.
The first was done by myself. I conducted the survey over a period of several months in the early part of 1994, and have added several items from time to time since then. The second survey was done in 1993 by Bradley Orner, who was an Amway distributor for 3.5 years. The third was done in June of 1996 by Robert Deering, an Amway distributor in Alaska. There are some differences in how we each did our comparisons.
[For more information also visit Charles Midgett's "The Other Side of the Plan" and see his own price comparison and also his "Buying From Your Own Store" article.]
"The results of the 1995-96 price survey are complete, and they show once again that Amway's Personal Shoppers Service Catalog offers low, competitive prices—in addition to PV/BV.The wording used for the 1994-95 and 1993-94 survey's is almost identical, with the exception that in 1993-94 the Lillian Vernon catalog was also listed as one of the competition. The results of these two previous surveys were:To prove our point, we searched the 1995 editions of five popular catalogs—Spiegel, J.C. Penny, Land's End, Finger Hut, and Williams-Sonoma—for items that are the same as or similar to merchandise featured in the 1995-1996 edition of the Personal Shoppers Catalog. We surveyed a wide range of items, including electronics, women's clothing, men's clothing, and various household products.
Of the 143 items compared, our suggested retail price was less than or equal to the competition 71% of the time. At distributor cost, the results were even more favorable. We beat or equaled the competition's price 92% of the time."
Notice that in their comparison, Amway Corp. chooses to define "the
competition" as only higher-end mail order catalogs that are most likely
to have the highest prices. Since they compared electronics and household
products, among others, they could just as well have included retail outlets
that sell this type of merchandise. Kmart, Walmart, Target, Costco...there's
certainly no lack of choices. Amway is obviously stacking the deck in their
own favor by excluding these perfectly viable consumer options.
Amway distributors will no doubt point out, and rightly so, that
the price comparisons presented here may also not be as objective as they
could be. I readily admit that this is likely so, though I made an honest
effort to be objective. The obvious difference is that I'm not afraid to
publish my data for all to see; anyone who wishes to can judge my bias
for themselves and verify the accuracy of my data. Verify Amway's data?
Tough luck, Jack.
As with Amway's other product comparison "data," this is also meaningless. In this case the implied, but unproven, assumption we're being asked to accept is that the products being compared are equal in effectiveness. The reality is that we again have no way of knowing this, except in those cases where the products being compared also happen to have been tested and rated for effectiveness by Consumer Reports or some other independent testing lab.
Without having to prove equal effectiveness, it's an easy matter to manipulate price and usage amounts to give the false appearance of superior value. Here's a simple example: A box of detergent Y has a suggested usage amount of 1 cup per wash load and a cost of $.25 per cup. I buy the same detergent from the manufacturer, sell it for the same price, but change the suggested usage amount to 1/2 cup. Presto—my detergent is now twice the "value" of the competing brand! Of course, it's also only half as effective at the recommended usage amount, so you have to use twice as much to get the same results. Amway's chart is cleverly worded to sound like Amway is claiming equal effectiveness without actually making such a claim directly.
It's interesting that with all its much-touted billions, Amway has never, to my knowledge, hired an independent testing facility to provide objective proof of the alleged superiority of their products. They can certainly afford it. Or, considering how poorly most of the Amway products tested by Consumer Reports fared, maybe they can't.
I used Amway's distributor prices as the basis of comparison, so the distributor discount is already figured in. Since Amway charges shipping on everything, that was added in. I chose mostly items that a typical family would purchase on a regular basis, like breakfast cereal, aluminum foil, underwear, disposable diapers, etc. I also included a few items that would be purchased more occasionally, but that most families were still likely to buy at some point, like a cordless phone and a vacuum cleaner.
In most cases the items compared are either exactly the same, or as directly comparable as I could manage. I made no attempt to find the lowest prices on anything on this list--I simply took the catalog with me when I did my usual shopping, and looked for items that were the same or similar to items in the catalog. I could just as easily have gone to a "warehouse" store like Costco, where they also sell in bulk quantities, and the price difference would have been even greater.
In some cases I compared one Amway product to several store products.
For example, I compared Amway's large disposable diapers to three other
brands of large disposable diapers. I felt this was fair for two reasons:
I purposely avoided comparing Amway-manufactured cleaning products
because of the famous "dilution" factor. I did this because in order for
a comparison between concentrated products to be valid, it must be demonstrated
that the concentration factors are equivalent; not having a testing lab,
I have no way of determining this. For the same reason, to infer or state
that Amway products are automatically superior because they are concentrated
is specious. The Consumer Reports ratings of Amway Dish Drops, Crystal
Bright and Zoom show that those Amway products are still poor values
regardless
of their concentration factor, which CR took into account. Also, not having
any experience with Amway products myself, I did not feel that I had a
basis for comparing Amway manufactured products to store products in terms
of effectiveness.
A few observations:
The first, or top, item in each pair of items is the Amway catalog
product, the second, or bottom, is the store product. Reading across from
left to right, the headings are:
Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Aerobic Step 39.99 34.00 2.80 36.80 1 each 36.800 184.00% Aerobic Step 20.00 1 each 20.000 --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Aluminum wrap, 12.49 10.62 0.87 11.49 225 sq. f 0.051 221.73% generic Aluminum wrap, 4.69 200 sq. f 0.023 generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Aluminum wrap, 12.49 10.62 0.87 11.49 225 sq. f 0.051 212.50% generic Aluminum wrap, 1.79 75 sq. f 0.024 generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Aluminum wrap, 12.49 10.62 0.87 11.49 225 sq. f 0.051 188.88% generic Aluminum wrap, 5.49 200 sq. f 0.027 Reynolds --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Aluminum wrap, 12.49 10.62 0.87 11.49 225 sq. f 0.051 164.51% generic Aluminum wrap, 2.29 75 sq. f 0.031 Reynolds --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Amoco LDO 19.99 17.00 7.00 24.00 12 quart 2.000 155.03% Motor Oil 10W-30 Penzoil 10W-30 1.29 1 quart 1.290 --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Amoco LDO 19.99 17.00 7.00 24.00 12 quart 2.000 143.88% Motor Oil 10W-40 Quaker State 1.39 1 quart 1.390 10W-40 --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Amoco LDO 20.99 17.85 7.00 24.85 12 quart 2.071 122.54% Motor Oil 20W-50 Castrol 20W-50 1.69 1 quart 1.690 --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Audio tape 14.99 12.75 3.00 15.75 1 each 15.750 175.58% holder, 3 drawer Audio tape 8.97 1 each 8.970 holder, 3 drawer --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Audio tapes, 15.99 11.05 1.12 12.17 20 each 0.609 49.31% Laser 60 minute Audio tapes, 2.47 2 each 1.235 Memorex 60 minutes --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Audio tapes, 15.99 11.05 1.12 12.17 20 each 0.609 122.53% Laser 60 minute Audio tapes, 1.49 3 each 0.497 Prism 60 minute --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Audio tapes, 15.99 11.05 1.12 12.17 20 each 0.609 61.82% Laser 60 minute Audio tapes, 1.97 2 each 0.985 TDK 60 minute --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Audio tapes, 15.99 13.60 1.12 14.72 20 each 0.736 55.13% Laser 90 minute Audio tapes, 2.67 2 each 1.335 Memorex 90 minute --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Audio tapes, 15.99 13.60 1.12 14.72 20 each 0.736 111.01% Laser 90 minute Audio tapes, 1.99 3 each 0.663 Prism 90 minute --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Audio tapes, 15.99 13.60 1.12 14.72 20 each 0.736 54.72% Laser 90 minute Audio tapes, 2.69 2 each 1.345 TDK 90 minute --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Briefs, Jockey 14.50 12.33 1.02 13.35 3 each 4.450 92.07% classic Briefs, Jockey 14.50 3 each 4.833 classic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Cheerios, 17.49 14.87 3.50 18.37 90 oz 0.204 129.93% generic Cheerios, 2.35 15 oz 0.157 General Mills --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Cheerios, 17.49 14.87 3.50 18.37 90 oz 0.204 192.45% generic Cheerios, 1.59 15 oz 0.106 Generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Cheez-its, 16.99 14.45 3.50 17.95 96 oz 0.187 150.80% generic Cheeze-its 1.98 16 oz 0.124 --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Computer, 2498.99 1700.00 25.00 1725.00 1 each 1725.000 133.20% Magnavox 486sx20 Gateway 2000 1295.00 1 each 1295.000 486sx25 --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Cordless 99.99 85.00 6.00 91.00 1 each 91.000 152.25% phone, 25 channel, Bell Cordless 59.77 1 each 59.770 phone, 25 channel, Bell --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Cordless 129.99 110.50 6.00 116.50 1 each 116.500 117.67% phone, Bell South Cordless 99.00 1 each 99.000 phone, Bell South --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Corn Flakes, 14.49 12.32 3.50 15.82 108 oz 0.146 231.74% generic Corn Flakes, 1.14 18 oz 0.063 generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Corn Flakes, 14.49 12.32 3.50 15.82 108 oz 0.146 155.31% generic Corn Flakes, 2.25 24 oz 0.094 Kellogs --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Cotton swabs, 10.68 8.50 0.75 9.25 1200 each 0.008 72.72% generic Cotton swabs, 2.15 200 each 0.011 J & J --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Dental floss, 11.99 10.20 0.90 11.10 800 yard 0.014 73.68% generic Dental floss, 3.84 200 yard 0.019 J & J --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Diskettes, 39.99 33.32 2.50 35.82 20 each 1.791 223.87% 3.5" HD, BASF Diskettes, 8.00 10 each 0.800 3.5" HD, Fuji --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 120 each 0.387 154.80% large Disp. diapers, 5.99 24 each 0.250 large, generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 120 each 0.387 139.20% large Huggies Baby 14.99 54 each 0.278 Steps, large --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 120 each 0.387 110.57% large Pampers 8.39 24 each 0.350 Phases, large --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 120 each 0.387 143.33% large Ultras In 6.48 24 each 0.270 Stages, large --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 160 each 0.290 174.69% medium Disp. diapers, 5.99 36 each 0.166 generic, medium --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 160 each 0.290 139.42% medium Huggies Baby 14.99 72 each 0.208 Steps, medium --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 160 each 0.290 124.46% medium Pampers 8.39 36 each 0.233 Phases, medium --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 160 each 0.290 161.11% medium Ultras In 6.48 36 each 0.180 Stages, medium --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 216 each 0.215 127.97% small Huggies Baby 8.39 50 each 0.168 Steps, small --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 216 each 0.215 127.97% small Pampers 8.39 50 each 0.168 Phases, small --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Disp. diapers, 47.99 43.20 3.25 46.45 216 each 0.215 165.38% small Ultras 6.48 50 each 0.130 In-Stages, small --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Elec. 59.99 51.00 3.00 54.00 1 each 54.000 108.06% thesaurus, Selectronic Franklin 49.97 1 each 49.970 Wordmaster --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Elec. 59.99 51.00 3.00 54.00 1 each 54.000 154.41% thesaurus, Selectronic Rogets 34.97 1 each 34.970 Synonyms --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Frito-Lay 24.99 21.25 1.75 23.00 90 0z 0.256 88.58% Variety Pack Frito-Lay 2.89 10 0z 0.289 Variety Pack --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Frosted 19.99 17.00 3.50 20.50 120 oz 0.171 159.81% Flakes, generic Frosted 2.14 20 oz 0.107 Flakes, generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Frosted 19.99 17.00 3.50 20.50 120 oz 0.171 101.18% Flakes, generic Frosted 3.37 20 oz 0.169 Flakes, Kellogs --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Fruit Loops, 21.99 18.70 3.50 22.20 90 oz 0.247 170.34% generic Fruit Loops, 2.18 15 oz 0.145 generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Fruit Loops, 25.49 18.70 3.50 22.20 90 oz 0.247 106.00% generic Fruit Loops, 3.49 15 oz 0.233 Kellogs --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Fruit roll, 13.99 11.90 1.05 12.95 18 oz 0.719 142.37% Sunkist Fruit roll, 2.02 4 oz 0.505 Betty Crocker --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Gummi Bears 17.49 14.87 1.31 16.18 45 oz 0.360 197.80% Gummi Trolls 0.91 5 oz 0.182 --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Hayes Accura 299.99 255.00 10.00 265.00 1 each 265.000 141.40% 28.8 modem, internal Hayes Accura 187.40 1 each 187.400 28.8 modem, internal --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Herbal teas, 19.99 17.00 1.40 18.40 168 tea b 0.110 86.61% Bigelow Herbal teas, 2.53 20 tea b 0.127 Bigelow --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Honey Nut 19.49 16.57 3.50 20.07 84 oz 0.239 113.27% Cheerios, generic Honey Nut 4.21 20 oz 0.211 Cheerios, Gen. Mills --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Honey Nut 19.49 16.57 3.50 20.07 84 oz 0.239 171.94% Cheerios, generic Honey Nut 1.94 14 oz 0.139 Cheerios, generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Hot Choc. Mix, 49.99 42.52 2.98 45.50 200 packe 0.228 87.69% generic Hot Choc. Mix, 2.08 8 packe 0.260 Swiss Miss --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Hot Chocolate 49.99 42.52 2.98 45.50 200 packe 0.228 108.05% Mix, generic, sugarless Hot Chocolate 1.69 8 packe 0.211 Mix, generic, sugarless --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Mac. & Cheese, 18.99 16.14 4.00 20.14 132 oz. 0.153 108.51% generic Mac. & Cheese, 0.99 7 oz. 0.141 Kraft --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Mac. & Cheese, 18.99 16.14 4.00 20.14 132 oz. 0.153 242.85% generic Mac. & Cheese, 0.38 6 oz. 0.063 Mission --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Macaroni & 18.99 16.14 4.00 20.14 132 oz. 0.153 325.53% Cheese, generic Macaroni & 0.33 7 oz. 0.047 Cheese, generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Meadowbrook 46.99 42.30 3.29 45.59 3308 sq. f 0.014 116.66% Facial Tisue Kleenex Facial 19.99 1608 sq. f 0.012 Tissue --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Microwave 11.99 10.20 3.00 13.20 63 oz 0.210 182.60% popcorn Microwave 1.26 11 oz 0.115 popcorn, generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Microwave 11.99 10.20 3.00 13.20 63 oz 0.210 111.70% popcorn Microwave 2.07 11 oz 0.188 popcorn, Pop Secret --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Microwave 11.99 10.20 3.00 13.20 63 oz 0.210 122.80% popcorn Microwave 1.88 11 oz 0.171 popcorn, Redenbachers --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Pancake syrup, 34.99 29.75 6.00 35.75 288 oz 0.124 103.33% generic Mrs. 2.88 24 oz 0.120 Butterworth syrup --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Pancake syrup, 34.99 29.75 6.00 35.75 288 oz 0.124 174.64% generic Pancake syrup, 1.71 24 oz 0.071 generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Pancake syrup, 34.99 29.75 6.00 35.75 288 oz 0.124 136.26% generic Pancake syrup, 2.19 24 oz 0.091 Log Cabin --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Peanut 29.99 25.50 2.25 27.75 120 pack 0.231 82.50% butter/cheese crackers, Peanut 0.28 1 pack 0.280 butter/cheese crackers, --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Plactrac Plus 59.99 51.00 4.49 55.49 1 each 55.490 252.34% Plactrac Plus 21.99 1 each 21.990 --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Plactrac 12.99 10.83 0.97 11.80 1 each 11.800 168.81% replacement head Plactrac 6.99 1 each 6.990 replacement head --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Razor cart. 8.99 7.65 0.67 8.32 20 each 0.416 140.54% w/comfort strip Schick Ultrex 2.96 10 each 0.296 cartridge w/co --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Razor 8.99 7.65 0.67 8.32 20 each 0.416 195.30% cartridge w/comfort Razor 3.19 15 each 0.213 cartridge w/comfort --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Rechargable 13.99 11.90 1.05 12.95 2 each 6.475 107.91% batteries, 9 volt, generic Rechargable 6.00 1 each 6.000 batteries, 9 volt, GE --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Rechargable 19.99 17.00 1.50 18.50 8 each 2.313 92.52% batteries, AA, generic Rechargable 2.50 1 each 2.500 batteries, AA, GE --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Rechargable 12.99 11.05 0.97 12.02 4 each 3.005 120.20% batteries, AAA, generic Rechargable 2.50 1 each 2.500 batteries, AAA, generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Rechargable 12.99 11.05 0.97 12.02 4 each 3.005 100.16% batteries, C, generic Rechargable 3.00 1 each 3.000 batteries, C, GE --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Rechargable 12.99 11.05 0.97 12.02 4 each 3.005 100.16% batteries, D, generic Rechargable 3.00 1 each 3.000 batteries, D, generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Ritz crackers, 13.49 11.47 3.50 14.97 60 oz 0.250 280.89% generic Ritz crackers, 1.07 12 oz 0.089 generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Ritz crackers, 16.99 11.47 3.50 14.97 60 oz 0.250 167.78% generic Ritz crackers, 2.38 16 oz 0.149 Nabisco --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Scientific 17.99 15.30 1.26 16.56 1 each 16.560 166.09% calculator, Sharp Casio Student 9.97 1 each 9.970 Scientific --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Scientific 17.99 15.30 1.26 16.56 1 each 16.560 110.62% calculator, Sharp Sharp Twin 14.97 1 each 14.970 Function --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Scrub sponges, 12.99 10.80 0.91 11.71 12 each 0.976 150.15% generic Scrub sponges, 0.65 1 each 0.650 Scotch Brite --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Semi Sweet 23.99 20.40 4.50 24.90 144 oz 0.173 180.20% morsals, generic Semi Sweet 1.15 12 oz 0.096 morsals, generic --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Semi Sweet 23.99 20.40 4.50 24.90 144 oz 0.173 109.49% morsals, generic Semi Sweet 1.89 12 oz 0.158 morsals, Nestles --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Sponge mop, 19.99 17.00 3.00 20.00 1 each 20.000 130.20% Quickie Sponge mop & 15.36 1 each 15.360 refill, Quickie --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. T-shirt, 18.00 15.30 1.26 16.56 3 each 5.520 92.00% Jockey crew neck T-shirt, 18.00 3 each 6.000 Jockey crew neck --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Toaster 21.49 19.34 1.50 20.84 132 oz. 0.158 126.40% Pastries, generic Pop Tarts, 5.39 43 oz. 0.125 Kellogs --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Toilet paper, 39.99 36.00 4.25 40.25 4056 sq. f 0.010 200.00% recycled, generic Toilet paper, 4.99 924 sq. f 0.005 Albertsons --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Toilet paper, 39.99 36.00 4.25 40.25 4056 sq. f 0.010 71.42% recycled, generic Toilet paper, 3.87 281 sq. f 0.014 Charmin --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Toilet paper, 39.99 36.00 4.25 40.25 4056 sq. f 0.010 142.85% recycled, generic Toilet paper, 5.99 882 sq. f 0.007 gen., recycled --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Toilet paper, 39.99 36.00 4.25 40.25 4056 sq. f 0.010 200.00% recycled, generic Toilet paper, 0.83 154 sq. f 0.005 Janet Lee --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Toothbrushes 7.99 6.80 0.60 7.40 6 each 1.233 77.06% Assorted 1.60 1 each 1.600 toothbrushes --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Vacuum 199.99 170.00 7.00 177.00 1 each 177.000 118.00% cleaner, Regina Vaccuum 149.99 1 each 149.990 cleaner, Regina --------------------------------------------------------------------------- Dist. Final # Cost Perc. Retail Cost Ship Cost U Unit per U Diff. Wheat thins, 16.99 14.45 3.50 17.95 96 oz 0.187 111.97% generic Wheat Thins 2.67 16 oz 0.167 --------------------------------------------------------------------------- Average perc. of difference at suggested retail: 162.70% Average perc. of difference at distributor cost: 140.85%
(Survey conducted in spring of 1993)
One issue that I have not had a strong opinion on to date is the price of Amway products. They did seem expensive to me. Still, after years of buying and using them, the arguments that their concentration and/or quality made their usage costs comparable seemed compelling. Also, Amway prints price comparisons from time to time. A few times I did find a really good price on an item we purchased from Amway. Most product reviews by Consumer's Reports have not been very favorable of Amway products, but only a few have been reviewed.
Anyway, I just finished doing a price comparison for myself--something I have wanted to do for quite some time. I soon learned that fair and true price comparisons are difficult and time consuming to do. I have decided to post the results, since others might find it of interest. First, some background: In doing this, I was not out to demonstrate that Amway products are either low or high priced--I just wanted to know the truth. I have tried to be unbiased, but there is some degree of subjectivity in what I have done, and any influence my bias might have would tend to be against Amway products, I think.
I selected the list of products before looking up any prices. I did not eliminate any products after looking at the results. Two or three products were removed because I could not easily find a close equivalent. I picked a wide range of common items.
I took care to make sure the competing product was truly equivalent. Two-ply unprinted tissues were compared to two-ply unprinted tissues, powder detergent to powder detergent, etc. I also took the price of the smallest Amway size available and tried to find a similar sized package for the competing product. In some cases the largest competing product package was still much smaller than the Amway package; I did the comparison anyway. I generally picked brand-name products, but some generic products are included.
A unit of comparison was selected and a unit cost obtained for all products. I tried to make sure the unit of measure accurately measured the product quantity--weight, volume, or area. Sponges for instance, were compared based on cubic inches.
I did my shopping for the competing products at a local food & drug store-- their prices seem to be a little below average but they are not a discount "warehouse" store. Prices on a few items were from K- mart.
I took the store's regular price for the item, even if it was on sale. Most of the Amway products I selected are available from the RDCs, which means that their is a shipping cost of four percent of retail on orders over $100 and $4 on orders under $100 (our direct distributor always charged us shipping charges based on that--others distributors may have been charged less, or more). Before computing the cost difference, 4% of retail was added to the wholesale and retail prices for the Amway products. A few items were only available from the catalog warehouse--shipping costs for these items is 7% or higher. I figured the shipping costs as a percent of retail, subtracted four percent, multiplied the result by the retail price, then added this amount to the retail and wholesale price. Thus, when the 4% is added to each product, the price of the Amway product reflects the costs including shipping. I added 2% to the cost of the competing products for transportation costs (though distributors often must drive to pick up their products, retail customers usually don't and ours were delivered to us). This 2% figure is pretty arbitrary, but is about equal to about 8 miles round trip at 27 cents per mile to purchase $100 of products. Often, I only picked one brand of product to compare with. If I noticed a wide range of prices between various brands (e.g., perfume or pharmaceuticals) or was unsure of equivalency, I compared with a few different products.
I have included a usage adjustment. I wish I could have done better here-- it is largely subjective and strongly impacts the results. The usage factor listed indicates the unit quantity of the competing product required to get the equivalent amount of use/benefit from one unit of the Amway product. This takes into account concentration for cleaning products, nutritional value for food supplements and weight control products, etc. I have listed a code to give some indication of how I came up with these values:
I compared both the wholesale and retail Amway price to the competing product prices. The generic description of each product is followed by two percentages. These percentages give the cost of the Amway product as a percent of the cost of the competing product (i.e., a number over 100 means the Amway product costs more, 200 indicates it costs twice as much, 50 indicates it costs half as much). If the generic name is listed twice, I did more than one comparison.
I dumped it into a text file from my spreadsheet, and it might be a little difficult to read. Since it was about 160 columns wide, I split it into left and right halves. Maybe you can download it, print it, and tape the two halfs together. I was not sure what Genie and our telecommunication programs would do with 160 character text lines.
Thanks for sending me your price comparison information. If you add to it over time, I would be interested in seeing an update. I don't see how people can repeatedly insist (and they believe themselves, too!) that Amway prices are low after seeing price comparisons like yours. The usual comeback, of course, is that some specific items might be higher but overall the prices are lower, or that the quality makes up for the price. But between the two of us we have compared probably over 200 items--definitely enough for statistical significance--and as you mentioned aluminum foil is pretty much aluminum foil. I guess in the end people will convince themselves that what they want to be true is true. That, of course, is what Amway is really about.
Left Side: Generic Amway Competing Name Name Name %d(W) %d(R) item# ---------------------------------------------------------------------- liq laundry det SA-8w/sftn Tide 94.8% 121.1% 1 liq laundry det SA-8w/sftn Smith's 174.3% 222.6% 2 pwdr laundry det SA-8 Plus Tide (concen) 147.2% 184.8% 3 chlorine bleach All Fabric Clorox all-fab 46.4% 58.6% 4 dishwasher det CrystlBrghtCascade 349.9% 445.4% 5 dish soap DishDrops Dawn 218.3% 276.7% 6 shoe spray ShoeSpray Kiwi 65.2% 93.7% 7 multi-vitamin DoubleX SchiffMega-high 334.2% 482.8% 8 multi-vitamin DoubleX Centrum 134.5% 194.2% 9 Beta Carotene Beta Car Energen 141.8% 195.5% 10 Vit E Par..-E Energen 320.9% 474.2% 11 Bio-C Bio-C Energen/acerola 337.7% 497.1% 12 general cleaner LOC Mr Clean 84.3% 119.1% 13 window cleaner SeeSpray Windex 57.7% 81.8% 14 disinfectant Pursue Lysol spray 111.4% 158.6% 15 liq cleanser ScrubBrightSoftScrub 118.6% 158.7% 16 bug spray Bug Spray Raid 76.2% 108.2% 17 toothpaste Glister Colgate 158.1% 196.6% 18 dental floss Dntl Floss John.&John. 53.2% 59.3% 19 nail polish Artistry Loreal 104.7% 146.0% 20 nail polish Artistry MaxFactor 78.4% 109.3% 21 nail polish Artistry Covergirl 166.8% 232.7% 22 lipstick w/sun Artistry Loreal 88.3% 125.1% 23 lipstick w/sun Artistry Clarion 94.4% 133.7% 24 lipstick w/sun Artistry Maxfactor 97.6% 138.4% 25 lipstick w/sun Artistry Covergirl 146.9% 208.1% 26 facial make-up Artistry Loreal 109.7% 158.2% 27 facial make-up Artistry Clarion 125.6% 181.1% 28 air freshener ScentscapesGlade/nature 731.1% 1043.9% 29 floor wax MopMate Brite 111.8% 160.0% 30 weight drink mix Positrim WeightWatchers 110.3% 141.8% 31 weight drink mix Positrim UltraSlim-fast 173.8% 223.5% 32 juice box Active-8 TreeTop 88.6% 105.8% 33 24 exp film dev Amway Smiths 172.2% 191.0% 34 liquid soap Nature ShwrDial 98.4% 124.5% 35 liquid soap Nature ShwrClean&Smooth 237.9% 300.8% 36 bath soap Family bar Dial 149.5% 172.3% 37 bath soap Family bar Zest 146.5% 168.8% 38 moist shampoo Satinique Vidal Sasson 185.6% 256.9% 39 moist shampoo Satinique Suave 603.2% 834.8% 40 body lotion Nature shwrSoftSense &nbs