Betterware
| Betterware | |
| Company type | Public company |
| Industry | housewares |
| Headquarters | , |
Number of employees | 5000 Distributors |
| Website | http://www.betterware.co.uk |
Betterware is a United Kingdom direct sales company for household products.
History and products
The company was founded in 1928 in East London and sold brushes door-to-door. It was originally called Betterwear and was renamed Betterware in 1970 to reflect a wider range of products. Andrew Cohen bought it in 1983 for £253,000 and moved it from Romford, Essex to Castle Vale, Birmingham.[1] It became a public company in 1986 and was one of the best performing shares on the stockmarket in the early 1990s when its share price rose from about 20p to more than 250p. Cohen sold his share of the company in 1997 by which time it was valued at £117 million.[2] Its product range now includes household products, kitchen and home storage products, personal care products, and mobility aids.[3] In 2015, it moved 2 miles within Birmingham, to Hurricane Park, Bromford.
Business model
The Betterware catalogue is delivered door-to-door in the United Kingdom and Ireland by a team of approximately 5,000 Distributors who then collect completed order forms. The products are then distributed from the company's warehouse in Hurricane Park, sandwiched between the River Tame and the M6. The distributors are employed on a part time or full time basis and report to line managers that the company calls coordinators, each covering a small town and surrounding area, or part of a larger town. 12 Regional managers are responsible for all coordinators in their area, and they report to head office. All activity takes place within pre-determined geographical areas. Turnover is over £50 million. There are subsidiaries in Spain, Cyprus and Central America. In addition to the home delivery catalogue customers can order products directly from head office online. Centrally-placed orders are delivered by the distributor or coordinator covering the relevant area, and regarded as sales found by them. There is also a retail outlet at head office.
Distributors are paid by 20% on sales (usually equivalent to no more than part time wages), coordinators by 10% (usually equivalent to full time wages), and other posts receive a fixed salary. Small one-off payments are accepted for referrals for new recruits, but the number of levels is fixed and new employees are slotted into the existing structure when positions become available.
Betterware has sponsored Marie Curie Cancer Care since 2009.[4] It is a founder member of the UK [Direct Selling Association].
References
- ^ Birmingham Post Rich List 2014 Retrieved 20 September 2014
- ^ Betterware founder nets 40m at The Independent Retrieved 20 September 2014
- ^ Betterware-about us. Retrieved 20 September 2014
- ^ Marie Curie Partnering. Retrieved 20 September 2014.
External links
- Betterware company website
- ctalk telephony. Retrieved 20 September 2014