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    Amway / Quixtar's Finest Fake News Source           30 July   2005

Quixtar Exec Axed for Missing Sales Goal

Sales Goal missed by 98.9%
Ada, MI (APP)  - According to an anonymous source inside Quixtar the reason for Ken McDonald's sudden "retirement" from the top position was that he could not make good on his goal to have Quixtar sales at $100 billion in just 5 years.  Even after five years of business Quixtar sold just $1.1 billion, falling short of the $100,000,000,000.00 goal by $98,900,000,000. 00 To make things worse, Quixtar still has not exceeded the 1997 peek sales of the North American Amway operation, which Quxitar replaced.

The $100 billion goal was made public by numerous diamond IBOs at the turn of the millennium with Quixtar's replacement of Amway's North American business in September of 1999.

"That story that Ken "retired" at 55 is all a bunch of hooey".  "No chief executive walks out of a number one spot at such a young age".  "They are too used to the power and action to just say 'oh, by the way I'm retiring at the end of the month!' ", noted the insider.   "Ken got busted, plain and simple", said another inisder.
Ron Puryear
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audio.gif (922 bytes) In 5 years $100 billion

 

Insiders say that various top level distributors are now quite embarrassed that they passed along the $100 billion sales goal to their prospects only to see it missed by 98.9%.  The IBOA demanded Ken McDonald's head for the embarrassment he caused them.  

Greg Duncan
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audio.gif (922 bytes) $100 billion Company
 Even Dexter Yager commented on Ken's aggressive sales goals.  "Ken had a really big dream, and usually the facts don't matter in the case of Amway/Quixtar distributors,  but let's be realistic, Ken thought the Internet would propel Quixtar's incremetal sales from $.5 billion the first year to  $94 billion in 5 years?  That is an an annual growth rate of 280%.  What was Ken smoking?   Ken thought they could grow to 40% the size of Wal-Mart in 5 years.  Man he was really dream'n big then.   The whole thing is an embarrassment to the high integrity diamonds of Amway and the IBOA board."
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The idel lines at the distribution center		 The effects of the over-optimistic sales goal have been devastating to Quixtar's warehouse capacity utilization, which today is floundering at  1% of total capacity.   Since the infrastructure was planned for almost 100 times the sales volume due to McDonald's dreamy prognosis, the operation is running basically at idle speed.

The low capacity utilization, and high investment cost have crippled Quixtar's cash flow and is said to have led to management's dissatisfaction with McDonald's performance.

Shown to the left is a typical day at Quixtar's under-utilized distribution operations with a lone package of Double-X coming down Quixtar's "tilt-tray" line.