what is the scam?
Do you mean telling people they won a free carpet cleaning or set of steak knives and then subjecting them to a 3 to 5 hr demonstration? Or do you mean placing "set up assembly display" ads or carpet shampooer ads to lure people into selling machines to their family and friends on their 'turn out weekends'?
If people know they are going to see a cleaning product demonstrated and are giving an opinion for receiving the gift, where is the scam? The scam lies in sending people who are untrained into homes where they subject people to an interminably long demo. Unnecessary. If a new person is shown how to use the equipment to pull dirt, and to get the customer involved in using the equipment, and simply asking "What do you think about the job it is doing compared to your present cleaner?" Do you like using it?" "If it were affordable, would you like to have one?"
The key is to show the need for the machine bu pulling lots and lots of dirt, and to do a good training class when the customer buys. It takes a fair amount of stamina to do a selling presentation, and most distributors want to sit with their feet up on the desk one they are promoted.
I never lied to make a sale, never pressured anyone into buying anything. The problem is distributors who don't want to go with new dealers, and resent paying full commissions when they are earned. I have seen it all, in Filter Queen, Rainbow, Kirby, and Electrolux. The problems lie in upper management and trickle on down. While the machines of necessity cost more than off the shelf vacuums at big box retailers, they need no cost as much as they do. When one can have a central vac installed for the same or less money as a Kirby or a Rainbow, that is just ridiculous. If the machine costs 500.00, the inventory needs to be replaced. The office needs to make 100.00. the salesman needs to make 200.00 the distributor needs to make 100.00, and the sales end of the organization needs to make 100.00 to provide gas cards for lead generation, bonus prizes, etc. That is 1000.00 for a 500.00 machine. So start at 1200.00 to give some bargaining room, and if a sale is made for 1200.00 then the salesman makes 100.00 more, the sales organization makes 50.00 more, and the distributor and the office each make 25.00 more. The salesman is the LAST on to lose any of his extra 100.00.
Raising the price of the machine to lower the number of unit sales to pay monthly expenses is self defeating, and the main reason so many offices go under. The distributor needs to be out with a salesperson every evening to develop them, but they won't. No vacuum cleaner should be priced above 1200.00 in my opinion.
Less disparity in what people pay, fewer aggravated customers over the price.
With so many poor quality vacuums being sold, there is a market for high quality door-to-door units, but not at $2500 to $3000
The best selling plan I ever heard of was used years ago in Fort Wayne, IN. People were solicited by means of a survey to give an opinion on the Rainbow. They were shown how to use the equipment, signed a receipt for it, and were left to use it for 3 or 4 days. 75% or better said "You can't have it back. I want to buy it" People made up their own minds based upon the dirt they saw removed, the improved feel and appearance of their carpets. and the improved air quality. Fill out the paperwork, collect referrals, do a training class. Set up the referrals with a survey and an in home trial and start the cycle over. Greedy RGDs wanted to make more money, which meant doing high pressure demos and demanding on the spot decisions to buy to get a higher price, which meant fewer sales. Craziness
