The Myth Of AutoShip

Author : Phil Covington
AutoShip, or the automatic delivery of products or services on a monthly basis
primarily serves two functions: 1) To create consistent consumption and repeat
purchases of that product or service by the consumer; 2) Customer convenience, by
eliminating the need for the customer to have to repeatedly reorder the same
products or services over and over again.Unfortunately, the benefits of AutoShip for either of the above purposes are vastly
overrated. It is true that network marketing companies would love to see their
customers continue to come back month after month to make repeat purchases.
However, in reality, it simply doesn't work that way. Unless you have a product or
service that by nature is generally delivered via ongoing subscription, i.e.,
newspapers and magazines, utilities (including communications and Internet),
insurance, loans, financial services, etc., just getting the customer to agree to go on
AutoShip is no guarantee that they won't cancel it.Many companies and their representatives like to rely on the fact that a certain
percentage of customers will indeed stay on AutoShip for extended periods for no
other reason than habit, and/or because they simply don't know how to cancel it. Is
that really the position that you want your customers to be in, though? People who
are buying your product simply because they forgot or don't know how to cancel the
recurring AutoShip order?Most friends and associates tend to view me as a well organized person. And
certainly I'm not one to waste money. Yet, despite that, I will admit that in any given
year it is not uncommon for me to spend anywhere from several hundred to over
one thousand dollars on products and services that I simply didn't have time (or
didn't know how) to cancel. It is not by accident that many companies make it easy
to sign up for the automatic delivery of their products or services, but provide no
easy way to cancel.In the case of one MLM related service that I decided to try out, not only was there
no way to cancel online, but their Contact form didn't work, so there was,
seemingly, no way to send them an email either! At first, they provided only a
Contact form and no email address. When eventually I found an email address and
sent an email asking them to cancel my account there was no reply! Finally I found a
phone number and called them, and even then they often had problems with their
voicemail box being full or not taking messages, etc.So, while it is possible to retain some customers longer simply because it's easy for
them to signup for AutoShip but not so easy to cancel, again, do you really want
your customer to feel like he or she is being held hostage?Ideally, you should have high quality products and services that are well understood
and in demand by your customers. Customers should continue ordering because
they WANT or NEED your product or service, and not simply because it's on
AutoShip.In the majority of cases, companies, and their representatives, want people on
AutoShip for ONE reason and one reason only, to attempt to extract ongoing
consistent revenue from that customer. At least from the company's standpoint,
that's the real bottom line. And, from both the company's standpoint and that of
the representative, that AutoShip may very well be tied to that representative
achieving or maintaining a certain compensation level, often with names like Silver,
Bronze, Gold, Platinum, Executive, etc. The more money you spend each month
(especially on AutoShip) the more money you qualify for in the compensation plan.
Often this results in inflated and/or artificial consumption. In other words, people
either buying things they don't really need, and/or buying more than they really
need.Rule #1 For Keeping AutoShip Under Control: For your own long term financial
success and in the best interests of your customers, is to make sure that you buy
only what you need! If you need a particular product or service delivered every
month and in that quantity, great. If not, don't agree to have it continue to be auto-
shipped to you.Rule #2 is to remember that, whether as a representative or a customer, YOU are the
ultimate consumer and purchaser. It's your money! Therefore, it should be up to
you as to when and how much of it you spend. Don't be intimidated by your
company or upline into buying more than you need, or fall into the trap of trying to
make your representatives and customers to do the same (buy more than they need
on AutoShip).In the short run you may make less money than if your numbers are artificially
inflated by people buying more on AutoShip than they really want to. But, in the
long run, you'll have a stronger customer and rep base, and your representatives
and customers will respect you far more for keeping their best interests in mind by
encouraging them to buy your products and services because they want and need
them, and in the quantities they need them in.At the very beginning of this article "Customer Convenience" was mentioned as one
of the reasons that companies claim to offer AutoShip.However, after decades of experience ordering a multitude of products worth tens
of thousands of dollars, and watching others do the same, I'm absolutely convinced
that AutoShip can be just as much an inconvenience as it is a convenience.And please let me be quick to point out that, yes, I absolutely DO have products and
services that to this very day are delivered to me each and every month on AutoShip.
I'll go even further by sharing with you that in just one category, nutritional
products, I order as much as $400 to $600 PER MONTH worth of those kinds of
products.HOWEVER, in a "slow" month I might order as little as $100 to $150 worth of
product. So, you might be wondering, why the difference, and what do I mean by a
"slow" month?Just one example: Health Packs (or Paks). Keep in mind that this is most commonly
applicable to health and nutritional products, but it can apply to many other
products and services as well.Most health and wellness companies offer at least one, "Health Pack," which they've
stocked with items they feel that most people would always want to purchase every
month. Again, these packages may also be designed to qualify the representative
for a particular level in the company's compensation plan.The problem with this approach is that, especially if it is a pack that contains many
varied products, it is highly unlikely that you will consume all of its contents equally
over the entire month. So, at the end of the month it is very possible that you'll end
up with too much, or too little, of some of the products included in any given
package.If you just keep ordering that same package then before long you'll end up with a
whole surplus of some items, and perhaps run short on others. That's what I mean
by a "slow" month. Slow months for me are those months where the previous
months' AutoShips have caused me to be overstocked on certain items. If I end up
getting overstocked on many if not most items, then I may only spend as little as
$100 to $150 that month buying just the few items that I'm running out of. On the
other hand, if it is a month during which I've almost run out of everything, or soon
will be, then I can easily spend as much as $400 to $600 purchasing all of the
health and nutritional products that I might typically buy in any given month.Do I continue to keep receiving products on AutoShip every month even when I
already have too many, or don't need them? Absolutely not! If I see that I'm getting
too stocked up on certain items then I'll remove those items from my AutoShip
order for that month. Some companies let you put AutoShip on "pause" and then
resume it again when you are ready for exactly this reason. However, if no such
options are provided I am not at all shy about simply canceling my AutoShip order
for a particular month altogether. Then, when I see that I'm going to be running low
on those items, I'll go back on AutoShip.AUTO SHIP DEADLINESEspecially if you are new to receiving products on AutoShip, be sure to familiarize
yourself with your company's policy for submitting changes or cancellations to your
order. Some companies will allow you to literally change your order almost at the
last minute. More commonly, however, they will have a policy that states that you
must do so well prior to the actual AutoShip date, sometimes by as much as 10 days
in advance! If your company has such a policy and you wait until after the deadline
you may be unable to stop your AutoShip for that month, even if you don't need any
more of the product!To summarize:1. Emphasize the value of your products and services so that both you and your
customers are purchasing because they need and want your products, and not just
to meet some compensation plan requirement. Ask yourself, "if I weren't personally
involved in this company, would I still be buying this product?"Almost all of the products and services that I mentioned above that I buy,
sometimes to the tune of as much as $400 to $600 a month, are for my personal
consumption only and not at all because I'm trying to qualify for a spot somewhere
in a company's compensation plan. In fact, in most cases, I do not push the
opportunity at all, and in most have never signed up even a single rep. (Though I'm
a huge fan of health and wellness and practice it daily, it just so happens that my
primary focus is on building organizations outside of the strictly heath and wellness
area.). So, I can definitely answer with a resounding, "yes," the question, "would I
buy these products anyway even if no opportunity were involved."If you can answer, "yes," to that question and you happen to be in the health and
wellness area, awesome! You'll be much better off and build a stronger organization
and customer base as a result.2. Do not buy and certainly do not continue to receive on monthly AutoShip
anything that you do not really want or need. Buy products because you actually
intend to use them, and not just to qualify for a certain level of compensation.3. Monitor your AutoShips and your usage of the products and be ready to adjust as
needed, ordering more, or less, whenever necessary.4. Finally, remember that YOU ultimately are in control and are the one who
determines what you need, and in what quantity, and when. So, if you are simply
getting too stocked up on certain items, or you simply don't need them during a
certain month, don't be shy about canceling your AutoShip order if your company
doesn't give you more flexible options. You can always resume your AutoShip order
when you are ready.And, lastly, let me point out that, all things considered, as long as you actually need
and want whatever products you are buying, then by all means DO take advantage
of any specials, bonuses, and/or compensation plan benefits that you will enjoy by
ordering on AutoShip. In other words, if your company offers advantages to placing
your order on AutoShip, as opposed to placing a "regular" order, there is nothing
wrong with that. Very few companies have a policy that states that you won't get
those same advantages just because you don't stay on AutoShip every single month.
If you cancel your AutoShip this month for instance, naturally you probably won't
enjoy for that month any of the perks that are offered for being on AutoShip.
However, when you DO decide to order again, if you place your order back on
AutoShip, you'll probably enjoy the same benefits as if you had been on AutoShip
the entire time.Some people like to shop at sales just because items are on sale. Hence the old
saying, "no sale is a good sale if you don't need the item that's on sale!" Likewise,
AutoShip does have it's place, but no benefit is likely to worth it if you are spending
money each month buying products on AutoShip that you don't really need or want.GRPMAX, L.L.C. was founded by CEO Phil Covington in 1979 and is the parent
company of ABCIncome.Com. GRPMAX
specializes in developing Uniquely Innovative Technologies & Solutions™ and has
worked with clients ranging from small business, to government, to the Fortune
500. Specifically, GRPMAX creates solutions that automate processes that previously
required human staffing and interaction. Mr. Covington's interest in the home
business field started in the 1980s and developed out of relationships with some of
the industry's most talented and highest earning individuals, during which time he
has actively pursued the creation of the ultimate home business passive income
solution.
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