The next decision that you need to make is how you want to start with your inventory. Most consultants choose to start with product that they can sell to customers. Did you like it when you had your facial and your consultant was able to give you your product right away? It has been proven that women will buy three times as much if they can have it and take it home immediately.
There are different ways you can start. It is totally up to you on how you want to start your business. I'm going to go through them quickly.
The smallest way is a $200 wholesale order which is $400 retail at a 50% discount. Basically, it's enough to use on your own face and you at least get qualified. In order to get paid a commission on your recruits, you must place a $200 wholesale order every third month. This gives you what they call an earned discount privilege. You may order as much or as little product that you want for two months after you place a $200 wholesale order.
Next is the $600 wholesale order which is $1,200 retail. The suggested loan is $800 because it includes tax and extra sales aids.
Advantages
you always get a 50% discount
the company freight for any order is $8.35 whether it's $18, $500, or $1,000
you get free product when you start with a $600 wholesale order - that does change depending on the contests the company is having at the time
you can deliver it on the spot to your customers
There's very little glamour, no body care, hair care, fragrances - it's mostly TimeWise and a little bit of glamour.
Disadvantages
you do have to reinvest until you build your inventory to meet your activity level
your customers will have to wait
What will happen is after you go home from your shows, you must figure out what everybody needs, write it down on a piece of paper, and place an order. When your order comes in, you have to figure out who gets what; you have to call everybody up and tell them that the order is in; and you have to set up a time to deliver the product. They figure that it takes an extra 9 hours a week if you don't have the inventory, which means you're making less of a profit.
Note Attached Flier: "Starting Out With A $600 Wholesale Order And Reinvesting"
Your activity level will depend on how much you do with your business. If you're just going to be a reorder consultant and you're not going to do shows or facials, a $2,400 wholesale order minimum is usually what I suggest. At least you'd have one of all the things that sell easily.
Next is a $1,200 wholesale order which has a $2,400 retail value. The suggested loan is $1,500 because that includes tax and extra sales aids.
Advantages
You always get a 50% discount
You get more free product than in a $600 wholesale order
You can deliver on the spot to about 12 customers
Product for maybe 3 classes
Minimum glamour and still no product lines of nail care, body care, hair care, fragrances, skin care, or anything else.
Disadvantages
You do still have to reinvest, usually a reinvestment of 6 to 8 times more of a $600 wholesale order
Next is an $1,800 wholesale order which is $3,600 retail, which is a "Sapphire Star Consultant" Order. Suggested loan is $2,200, which includes tax and extra sales aids.
Advantages
You always get a 50% discount
You are now a "Sapphire Star Consultant"
You get prizes from the company
You get even more free product
You get your "Ladder of Success" pin with your 1st Sapphire Star from the company as a prize
The 1,800 wholesale order is not quite one of everything. You get a little more basic and a little more glamour. You still are not getting things like colognes and Men's Skin Care and stuff like that unless you get it in place of the Basics. You can order according to what you want and we will help you figure that out.
Next is a $2,400 wholesale order which is $4,800 retail. It's a "Ruby Star Consultant" Order. Suggested loan is $2,900, which includes tax and extra sales aids.
Advantages
You always get a 50% discount
You are now a "Ruby Star Consultant"
You get prizes from the company - You go up a Prize Level here
You get even more free product
You can deliver to about 25 customers on the spot
You get your "Ladder of Success" pin with your 1st Ruby Star from the company as a prize, and you will get recognition for being a "Ruby Star Consultant"
Next is a $3,000 wholesale order which is $6,000 retail. You're a "Diamond Star Consultant". The suggested loan is $3,600, which includes tax and extra sales aids.
Advantages
You always get a 50% discount
You are now a "Diamond Star Consultant"
You get prizes from the company - You go up another Prize Level here
You get even more free product
You're getting to a more workable level of inventory where you can do maybe one class a week and still be OK and be able to put your order in maybe once a month to keep your inventory at a decent level
You get your "Ladder of Success" pin with your 1st Diamond Star from the company as a prize, and you will get recognition for being a "Diamond Star Consultant"
You are closer to a profit making business. Some of you will be able to take a profit at this level if you are just doing a facial or two or have reorders.
Last is a $3,600 wholesale order which is $7,200 retail. Wow! You're an "Emerald Star Consultant"! The suggested loan is $4,300, which includes tax and extra sales aids.
Advantages
You always get a 50% discount
You are now an "Emerald Star Consultant"
You get prizes from the company - You go up even another Prize Level here
You get a lot more free product
You can start holding classes right away. You can have 3-5 classes your first week and you won't run out of many products.
You can deliver to almost everyone on the spot
You get your "Ladder of Success" pin with your 1st Emerald Star from the company as a prize, and you will get recognition for being an "Emerald Star Consultant"
We never, ever, ever buy products from other consultants. Moreover, you should try to trade as little as possible. That's why we're not a multi-level company. We only buy from the Company. If you need products and you run out of them, you really need to put in an order to the Company to get whatever it is you need.
The Company has been having lots of neat things where you can get a few items at a time now without having to pay full price. We don't ever, ever exchange money or purchase products from elsewhere, because when you do that, you are taking away from your business. You don't get credit for your own prizes, and your recruiter doesn't get credit, and your director and so on and so on…
At any level, you're still going to run out of a few products now and then. The reason that consultants are not afraid to start with inventory is because it is guaranteed. You decide you don't like Mary Kay, you can send you products back and get your money back from Mary Kay - 90% of what you paid for it. Very few consultants choose to do this because if they do send their product back , they can NEVER become a Mary Kay Consultant again. Very rarely is there a consultant that quits Mary Kay Cosmetics with the idea that she will never be able to become a consultant again. Most of them quit with the idea that someday they would like to come back to Mary Kay Cosmetics at a later date because it's such a fantastic opportunity and career. At least you don't have to be afraid to get your inventory. You have that option. It's like a "Safety Net".
I know that when I got into Mary Kay, I thought - gee whiz, I just bought a car and I'm not making any money on that car. Why would I not want to invest that much into my own business when I'm guaranteed my money back and I can double my money?
When I went to college for 2 years, I spent a lot of money. I did not graduate and when I didn't graduate, I did not get my money back and I was not able to take advantage of the time that I spent in college.
We have found that it saves about 9 hours a week for a consultant when she's able to give the product to the customer immediately. Therefore, what you need to do is if you haven't already decided what you want to do about inventory. Then you need to go ahead and make that decision. You let us know and we'll tell you what your next step is and what you need to do to get started, and we'll help you put your order together.
Monday, November 07, 2005
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