XSGEAR AU/NZ - FAQ

XS Gear AU NZ - Frequently Asked Questions

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PROMOTIONAL:

Who is the target market for XS Energy drinks?
The target population for XS Energy drinks is people who need energy but don't want the calories and carbohydrates of traditional energy drinks or soft drinks. Energy drinks have been around for more than a decade, and have grown in popularity at an amazing pace. Red Bull®, the most widely advertised energy drink, claims to sell over one billion cans worldwide each year.

The fast growth of the specialized coffee market worldwide has also contributed significantly to creating a demand for daily drinks that provide an energy boost. The major specialized coffee marketers have been expanding to cold, canned drinks to make the daily use of their products more convenient and practical. This direction is perfect for Energy Drinks. The average family drinks several litres of liquid every day. Many of those liquids are consumed cold, out of cans and as an energy boost. A typical "XS Consuming Family" of four easily consumes more than four 12-packs per month. This is only 48 cans for the entire family per month. This is barely 1 can every 3 days per family member. Anyone who has introduced great tasting XS drinks to their families knows that this is a very conservative amount, and the reality of normal consumption in such families is actually greater.
Can XS be sold to a bar/restaurant/juice bar as an ingredient for drinks they mix?
Yes, since the product will not be promoted or displayed it can be used in this manner. Additionally, XS could be sold as a generic energy drink provided it is dispensed by the glass similar to the coffee service.
If XS ENERGY DRINK is dispensed in a Café, Bar, Restaurant etc can a flyer be handed over the counter to the customer?
Yes, an approved flyer can be handed over the counter but any can sales or business discussions must be made at a suitable time away from the retail area. The flyer must be requested by the customer and not offered with the drink and neither XS Energy Drink product nor XS Energy Drink Posters can be displayed anywhere within the outlet.
Can I create my own name to promote XS ENERGY DRINK through a coffee shop bar etc?
No. The message on the price board must be "Energy drink" with the price. It cannot be renamed as "Bobs Energy Drink" or "Blast Energy Drink" or any other name
Can Bar/Café staff wear XS Energy Drink T- Shirts?
No. This is really no different than having posters on display.
Can an IBO set up a sampling of XS drink at a sporting event, gym or university?
Yes, but only if the drink is dispensed from a cooler or glasses and there are no sales on site. IBOs can gather information using the approved questionnaire about interested parties for follow up at a later stage.
If the follow up is for a retail customer sale, no further documentation other than a retail sales docket is required.
If the list is used for prospecting, the Leave Behind Brochure must be given to the prospect when the business is discussed.
What promotional products can be used at a sampling? Posters, flyers, tee shirts etc?
Only the authorised Posters, Flyers, glasses, T-Shirts are to be used at samplings. Sales, either by glass or can, cannot be made at a sampling. XS Energy Can displays and displays of any other product supplied by Amway are not permitted at samplings.
If I choose to do a sampling at a University, sporting event etc can I sample with other products as well?
No. The only product that we have allowed this type of activity is XS ENERGY DRINK Energy Drink. All other products must be handled as per the Amway Rules of Conduct.
Can I do a sampling in a retail environment such as a shopping centre or mall?
No. Samplings can only be performed within a single function entity as in a gym, university, health club etc and not at Trade Shows, Bridal Fairs and shopping malls where significant expenditure, licensing compliance and landlord approval may be required for admittance to the premises.
Can I use my own promotional material at product samplings?
No. Only the authorised promotional material can be used.
Can we run a promotion at a product handling, eg, "go into the draw to win 6 cases of XS ENERGY DRINK?
No. A product sampling is to be a sampling. There should be no other promotional activity outside of what these rules allow.
Can an IBO set up a booth display to promote the XS drink at a health and fitness expo or other Expo's or trade shows?
IBOs may not set up booth displays to promote the Company's products and services.

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RETAIL:

Can the XS energy drink be sold through a retail store/petrol station/fitness center/health club etc.? Would it be OK if the owner is an IBO?
XS is not allowed to be displayed or sold in a retail store or service establishment. The Retail Sales Rule (Rule 3.6) states that an IBO shall not permit the Company's products or services to be sold or displayed in retail stores or any similar establishment such as beauty salons, gymnasiums or professional offices. An IBO who works in or owns a retail store must operate their IB separate and apart from the store.
To appreciate the reasoning behind this Rule one must keep in mind that the Amway opportunity is designed to give people from all walks of life the ability to own their own business. Allowing our products to be sold in retail or service establishments would give IBOs that have access to them an unfair advantage and would be contrary to the person-to-person nature of the business.
Can XS ENERGY DRINK be sold through Vending machines?
No. Vending machines are considered retail and therefore are unable to sell the product.
Can XS ENERGY DRINK brochures be stacked with magazines in Hairdressing Salons, Gyms or any other retail outlets?
No. The rules for XS ENERGY DRINK must be considered in parallel with the Amway Rules of Conduct. Promotional material or displayed product cannot be left in any retail environment.
Can XS ENERGY DRINK be dispensed over the front counter, through a cooler or glass, at a gym that does not have a coffee shop/ Café on site?
No. It can only be dispense in a proper coffee shop/ café are within the gym.
If the Gym does not have a café area can a separate desk be set up to sell it by the glass away from the front desk?
Yes.
Can I hand over a can of XS ENERGY DRINK with other product I sell through my other business? Eg a can with every Magazine I sell through my newsagency?
No. Other that being an expensive way to do business, no IBO can use a retail environment to promote the business.
What about dispensing machines, eg postmix
As XS ENERGY DRINK is carbonated and unavailable in syrup form dispensing machines are usually unsuitable.
Will I be held responsible if I sell XS to someone that decides to resell it through a retail or service establishment?
The implication of the Retail Store Rule, is that IBOs are responsible for making certain their customers are aware they are not allowed to resell the Company's products and services, including XS. Therefore, if the customer is ordering 20 cases at a time it's a strong possibility they are reselling.
Can Personal Trainers, Gym Instructors, Fitness Professionals, Sporting Coaches and Team Managers and Sporting Groups and Sporting Groups sell XS Energy Drink?
Yes, Personal Trainers, Gym Instructors, Fitness Professionals, Sporting Coaches and Team Managers and Sporting Groups and Sporting Groups may sell XS to clients/team members provided the transaction occurs one on one and does not take place in a public place or retail area.
Can XS be sold from a mobile food service van selling, for example, lunches or ice cream?
No Food service vans are a retail environment and Amway supplied products may not be sold from a retail environment.

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PROMOTIONAL:

Can an employer purchase XS ENERGY DRINK and sell to his employees through their own canteen, fridge ? If so can this be promoted throughout the place of work?
As long as the product is sold within the confines of a workplace which is closed to the general public. There should be no promotion in the workplace for the product. If the employer uses a third party vending machine facility the practice will not be allowed.
Why are IBOs not able to supply to school cafeterias?
Given the type of drink that XS ENERGY DRINK is it is considered prudent that Amway not recommend promotion in schools or sales to children under 18 years of age. In these situations we will leave it up to the parents or guardians to determine what is appropriate for children to purchase.

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GENERAL:

Can XS be sold in a university or work cafeteria or at a sporting event?
XS can be sold in a cafeteria or any other food service provider only if it is listed as a generic energy drink and dispensed by the glass.
If I wear a XS ENERGY DRINK tee shirt and drink a can in public will that be considered against the rules?
No, but if you were to have a another sign saying "ask me about XS ENERGY DRINK" or any other promotional display then it would be against the rules.
As an IBO do I need my own public liability insurance for XS ENERGY DRINK?
The sale of XS ENERGY DRINK product is covered under Amway's own Product Liability Insurance. It is advisable that any IBO conducting samplings in private premises have their own Public Liability Insurance to cover against damage, which may be caused because of the IBOs presence.
Do IBOs need to be insured in case someone has a reaction to XS ENERGY DRINK?
No. As long as it promoted by IBO's consistent with Amway's published material any liability will be addressed under Amway's Product Liability Insurance.
Can I use the Name XS ENERGY DRINK to name a boat, racing car etc?
The XS ENERGY DRINK trademark must not be used in any other context other than that determined or approved by Amway.

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RULES OF CONDUCT (IBO's ONLY):

Can the XS energy drink be sold through a retail store/vending machine/petrol station/fitness centre, etc.? Would it be OK if the owner is an IBO?
To appreciate the reasoning behind this Rule one must keep in mind that the Amway opportunity is designed to give people from all walks of life the ability to own their own business. Allowing our products to be sold in retail or service establishments would give IBOs that have access to them an unfair advantage and would be contrary to the person-to-person nature of the business.
Can XS be sold to a bar/restaurant/juice bar as an ingredient for drinks they mix?
Yes, since the product will not be promoted or displayed it can be used in this manner. Additionally, XS could be sold as a generic energy drink provided it is dispensed by the glass similar to the coffee service.
Can XS be sold in a university or work cafeteria or at a sporting event?
XS can be sold in a cafeteria or any other food service provider only if it is listed as a generic energy drink and dispensed by the glass.
Will I be held responsible if I sell XS to someone that decides to resell it through a retail or service establishment?
The implication of the Retail Store Rule, is that IBOs are responsible for making certain their customers are aware they are not allowed to resell the Company's products and services, including XS. Therefore, if the customer is ordering 20 cases at a time it's a strong possibility they are reselling.
Can an IBO set up a booth display to promote the XS drink at a health and fitness expo?
IBOs may not set up booth displays to promote the Company's products and services.
Can an IBO set up a sampling of XS drink at a sporting event, gym or university?
Yes, but only if the drink is dispensed from a cooler and there are no sales on site. IBOs can gather information using the approved questionnaire about interested parties for follow up at a later stage.
If the follow up is for a retail customer sale, no further documentation other than a retail sales docket is required.
If the list is used for prospecting, the Leave Behind Brochure must be given to the prospect when the business is discussed.
Can Personal Trainers, Gym Instructors, Fitness Professionals, Sporting Coaches and Team Managers and Sporting Groups and Sporting Groups sell XS Energy Drink?
Yes, Personal Trainers, Gym Instructors, Fitness Professionals, Sporting Coaches and
Team Managers and Sporting Groups and Sporting Groups may sell XS to clients/team members provided the transaction occurs one on one and does not take place in a public place or retail area.
Can XS be sold from a mobile food service van selling, for example, lunches or ice cream?
No Food service vans are a retail environment and Amway supplied products may not be sold from a retail environment.

If an IBO has questions about a specific proposal, please refer them to Booth & Events or Business Conduct by calling Amway Contact Centre on 1800 45 46 47.

XS is not allowed to be displayed or sold in a retail store or service establishment. The Retail Sales Rule (Rule 3.6) states that an IBO shall not permit the Company's products or services to be sold or displayed in retail stores or any similar establishment such as beauty salons, gymnasiums or professional offices. An IBO who works in or owns a retail store must operate their IB separate and apart from the store.

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