Automatic Re-ordering Programs
Posted on December 15, 2006
Filed Under MLM |
I’m sure many people like the convenience of ordering your products through these programs if it’s part of the service offered by the company you’re buying from. Now, reasons you want to sign-up for such a program may be:
For Distributors:
1. For ease of monthly maintenance - No need to remember the order-by date in order to qualify for commission run. Usually a minimum order is required.
2. To ensure the stability of quota - No need to call up customers for confirmation of order every month. This is an important point when you need to achieve a certain ranking for higher commission payout. Can therefore focus on recruiting more new customers or helping your downlines.
3. Logistic - The company will deliver the products to your customers on a timely basis. Saves you time. But you may not get the chance to provide personal service to your customers if you do not pay them a visit. They may want to order other products or require further information on other products that you may be selling. You may miss out on the opportunity to inform them on current offers.
4. Collection - Less hassle of collecting and banking the money to the company. Customers usually buy more when there’s no physical money involved.
For customers:
1. Convenience - You like the products and would like the company to send them to you on a monthly basis. Dont have to call up the distributor when the product you are using/taking is running low. Moreover, the distributor may not be available at all times.
2. Discounts - Customers on these programs usually get a better discount on their products. But, bear in mind you may have to sign a contract with the company for a said period of say, 12 months, in order to qualify for the discount. But the difference may be attractive.
3. Payment - Can pay via credit card or direct debit. Some may not like handing money over to a distributor.
A very important point to note when signing up for these programs is you MUST find out how in the event you wish to cancel or teminate the contract. It’s really not that easy or convenient after all. Questions to ask your distributor or the company BEFORE you sign up are:
1. Date - Make sure you know the order-by date. If not the default order will be sent and you will still be charged on that month’s order.
2. Notice - Usually, a 14 - 30days notice period is required and you will still be sent the same month’s order. The cancellation will only take effect from the following month onwards.
3. Penalty - Ask for the cancellation/termination fees involved. Usually quite high as you get lower rates when you signed up for the program. Be prepared to accept this.
4. Refund - Check if you get a refund for cancelling and returning the products if you did not cancel on time. Ask for the refund rate. You may only get back 90% or less on what you paid for, minus the penalty fee. Ask how long does it take for you to get back your refund.
Do not sign for the products when it arrives at your doorstep. Instead, have it RTSed (Return To Sender) if the company allows it. If not, they’ll charge you for the return fare, which may be higher than you expected. Check with their policy. Note down the time and date you rejected the parcel. Saves you time and money on sending the parcel back to the company. Calculate beforehand what is the amount you’ll get should you cancel your order.
Example: Your monthly Automatic Re-ordering Program is $100/mth. The company charges $10 on cancellation. And offers and 90% refund for products returned. You’ll get $100 - $10 (penalty) - $10 (refund charges) = $80. And that is if there’s no return fare charged for your order. If there is, deduct another $20 or so, and you may end up with only $60. Fair enough? You determine it for yourself.
Last but not least, track your refund. It’s your money. Take charge. Check with the company’s accounts department when the refund will be credited back to your credit card or bank account. Or if they sent you a check instead. Ask for a date, and note down the name of the person whom you corresponded with, and date and time you called up the company.
If you still do not receive your due refund by say 2 - 4 weeks time, call the company up again to enquire on the process. Your distributor will prove to be a practically useless slob at this point as it means loss of sale and commission, believe you me. Check with your bank or credit card to see if the refund is in. If not, continue bugging the company. Back up your complaint with facts. Ask them for proof that they have already credited the amount back to your accounts. Good luck.
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