Analyzing the Failing Mary Kay Directors in a “Hot” Area

I recently received some very interesting information from someone about a "hot" area in Mary Kay. It doesn't really matter whose area it is…. just know that it is a newer national sales director who is worshipped by many in the pink bubble. 

Sadly, the worshipers have no idea how poorly most of the directors are doing in this area. Their production and commission checks have fallen dramatically across the board in this area. We're not talking one or two directors whose units have gotten smaller. We're talking just about everyone in the area.

There are 49 directors in this area. Of the total directors, 13 (or 27%) are not car drivers, which means their production averages less than $4,500 wholesale per month. Of the directors who are car drivers, 29 (or 59% of the total directors) make regular copays, and 7 (or 14% of the total directors) do not make any copays on their cars.

 

But there’s more information about how the directors are failing. 3 directors will make Court of Sales. The other 46 aren’t even close. So much for lots of retailing of products by directors!

Two of the directors will make Court of Sharing, and two others may possibly make it. One of these four bought the production of 34 of the people who qualified her for the Court of Sharing.

But the best information relates to the top directors in this hot, hot, hot area. We’ll call them “the big 5,” and well refer to them with letters. They’re fairly well-known in Mary Kay, and were all believed to be movers and shakers at one time. They were mostly on the fast-track to national sales director. Now you see that except for one, their numbers are way down for the year!

Director A: Last year $1 million retail; This year $570,000 retail thru May
Director B: Last year $350,000 retail; This year $522,000 retail thru May
Director C: Last year $700,000 retail; This year $363,000 retail thru May
Director D: Last year $835,000 retail; This year $314,000 retail thru May
Director E: Last year $500,000 retail; This year $167,000 retail thru May

And maybe the most interesting statistic…. Director E’s wholesale orders for the year are $160,000, which should equal $320,000 retail for the contests. But she has $153,000 retail ($76,500 wholesale) in product returns from consultants through May which bring the retail so far down. Can you imagine the chargebacks on $76,500 wholesale… We’re talking something in the neighborhood of $15,300 in commissions returned to the company.

If the top directors in this area are suffering so much and can’t even match last year’s retail, what does that say about all the directors in Mary Kay? Do you think this is isolated to this particular area? I doubt it. Rock on, Pink Truth. Onward with our consumer awareness campaign!