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Re: Amway/Quixtar North America - Confronting Brutal Reality
by Anonymous
Orrin, Amway *global* sales were just over a billion for 1980. That includes the newly opened and fast growing Japanese market, as well as Germany and Hong Kong, which were already significant markets at this time. Given that North American wholesale sales only 4 years earlier were $169,100,000 (from FTC vs Amway), then it's doubtful $1 billion retail figure is even remotely accurate for 1980. Since we have accurate figures for 1976, perhaps a 1976 to 2006 comparison would be better? On the other side of the coin, you made an error in your calculations. You can't subtract 32% of retail pricing to get the wholesale pricing. The markup is based on the wholesale price, divide by 1.32 is the correct method. $1 billion in retail is $758 billion at wholesale.
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