Late last year we discussed Mary Kay’s new customer delivery service, through which sales directors and national sales directors can currently have products shipped to customers directly from Mary Kay. In August 2009, consultants will be able to particpate. Of course, you can only participate if you’re a star consultant, which means you must have ordered at least $1,800 wholesale in the prior quarter.

Here are more details about the program, for your perusal and critique…

Q. What is the Customer Delivery Service (CDS)?

A. Customer Delivery Service is an optional shipping service exclusively for Star Consultants to quickly and conveniently deliver products directly to their customers. Special attention has been given to each product order to create a positive experience for the customer. Included in each package is a specially decorated box, a beautiful packing slip, a copy of The Look or two samplers and the items ordered. The Star Consultant may choose to include additional samplers, a black gift bag or a gift with purchase, etc.

Q. What are the advantages to using the Customer Delivery Service?

A. Customer Delivery Service is easy, convenient and fast, both for you and your customers. You need only a ProPay™ account and a Mary Kay® Personal Web Site or your order may be submitted via a sales ticket on the Mary Kay InTouch® Web site. Your customers’ orders will be shipped directly to them, professionally packaged and branded the “Mary Kay” way.
Q. When is the Customer Delivery Service available?

A. In February 2009, all Independent Sales Directors who were Star Consultants in the Sept. 16 – Dec. 15, 2008 quarter will be eligible to take advantage of this service. If at any time between February and August 2009, an Independent Sales Director qualifies to be a Star Consultant, they will automatically be eligible to use Customer Delivery Service. In August 2009, the Customer Delivery Service is scheduled to officially launch to all Star Consultants who qualify in the March 16 – June 15, 2009 quarter.

Q. Are there eligibility requirements for independent sales force members to use this service?

A. Yes. A sales force member needs to:

• Be a Star Consultant in the prior quarter or immediately after they place an $1,800 retail order in the current quarter
• Have a ProPay™ account
• Accept orders on her Mary Kay® Personal Web Site or create orders from a sales ticket

Q. Are there any ordering requirements to use this service?

A. Yes. Orders must meet the following requirements:

• Orders may be placed on the Independent Beauty Consultant’s Mary Kay® Personal Web Site or created from a sales ticket.
• The customer must pay for her order with a credit card and the payment must be valid.
• The customer must have a valid shipping address.
• Online orders cannot be submitted via CDS by the Independent Beauty Consultant if the ordering period for the month has closed (approximately 2-3 hours at month–end).
• No Last Chance, Discounted (Pink Sale items) or Out of Stock items allowed at this time.

Q. How does a Star Consultant utilize Customer Delivery Service on an order?

A. The Star Consultant should access myCustomers® and on the myCustomers® order screen, she will see a new selection titled, “View Details to See Customer Delivery Service Options.” Clicking on that option, she can view her customer’s order, and in the Delivery and Payment Information section, she’ll click on the Edit link to the Customer Delivery Service option. On this page, the Star Consultant makes the decision to use the Customer Delivery Service or elects to deliver the order herself.

Q. How does the Star Consultant charge her customer for the items ordered?

A. The Star Consultant determines what she will charge the customer for the order, including shipping and handling charges and taxes. She has the option of selecting a copy of The Look or two samplers to include at no additional charge with an order, plus she may also include other samplers, literature or a gift with purchase at an additional charge.

Q. How is the Star Consultant charged for using this service?

A. When the Star Consultant is ready to submit the CDS order, she will enter the amount she’s charging her customer’s credit card on the payment screen. Prior to submission, a pop-up screen will appear to review the details of the customer’s charge* and what is being credited to the Star Consultant’s ProPay™ account. The screen will show her what she’s being charged by the Company for the order, so the amount can be debited from her ProPay™ account and paid to Mary Kay. A final summary will detail her actual earnings on the order. Once she has verified all the information and its accuracy, she can press “YES,” and the order will be submitted. The Star Consultant can view the details of her submitted order on the CDS Order Detail screen and as in myCustomers®, she can send a receipt and schedule a follow-up date on the order.

*Independent sales force members who have a ProPay™ Premium account can also process charges on American Express. ProPay™ Basic accounts do not accept American Express.

Q. Is there a shipping and handling fee associated with CDS orders?

A. Yes. All Star Consultants will be charged an $8.75 shipping and handling fee* plus applicable sales tax. The charge includes shipping costs, special packaging, a custom packing slip and the choice of one copy of The Look or two samplers. It is the Star Consultant’s choice to pass along that fee to her customer. If you choose to pass along the shipping and handling fee, please remember not to charge sales tax on the fee for orders shipped to the following states: Delaware, Idaho, Iowa, Montana, New Hampshire, Oklahoma, Oregon, Utah and Wyoming.

*Shipping and handling fee is $30 for CDS orders to Alaska, Guam, Hawaii, Puerto Rico and the U.S. Virgin Islands. We cannot ship orders overseas.

Q. Can a CDS order be changed once it has been submitted?

A. No. CDS orders will be processed as quickly as possible through our fulfillment operations in order to assist the Star Consultant in providing optimum service to her customers so they will not be subject to change.

Q. Can a Star Consultant ask the Company to change her regular order to a CDS order?

A. No. All CDS orders must come through a Star Consultant’s Mary Kay® Personal Web Site or a sales ticket to ensure that she meets the requirements of the program, as well as to ensure that the order itself qualifies for the program. The Customer Delivery Service is meant to help the Star Consultant serve her individual customers more efficiently.

Q. How will products damaged in shipment be handled on CDS orders?

A. A Star Consultant should advise her customer to notify her directly if there are any problems with her CDS order. Should a product be damaged, the Star Consultant may elect to replace it from her existing inventory, or she may contact her Branch Customer Service. Based on her instructions, the Company could ship the replacement item directly to her customer or ship it to the Star Consultant so she can resolve the issue with her customer directly. In these instances, Branch Customer Service would only contact the Star Consultant – not her customer.

Q. I like the packaging you’re using for the Customer Delivery Service! Can you use this packaging for all of our mailings?

A. At this time, we have no plans to change the rest of our packaging. The Customer Delivery Service is an exclusive service offered only to Star Consultants, and the packaging was designed specifically for this program. We agree that it makes a beautiful impression on your customers, and that’s a privilege you’ve earned as a Star Consultant!

Q. Why can I not ship products that are Last Chance or out of stock products?

A. Mary Kay® cannot ship products from our branch facilities that are not currently available for ordering from the Consultant order form. We recommend you fulfill your customer’s order featuring Last Chance products or out of stock items from your own inventory.

Q. Why is the tax on the Customer Delivery Service order different from the tax that is typically charged on my online cosmetic order?

A. Our system calculates the tax for a Customer Delivery Service order based on the address the order is being shipped to. For Customer Delivery Service, this tax will be calculated based on your customer’s ship to address.

Q. How can I check the status of my customer’s order shipped via Customer Delivery Service?

A. You may check the status of your customer’s order through Order Status on the Mary Kay InTouch® Web site. As part of the Customer Delivery Service program we will send an automatic e-mail notification to you and your customer once the order has shipped and the UPS tracking information will be included.

Q. Can shipments of CDS orders be tracked?

A. Yes. All CDS orders will be shipped via UPS to ensure the Beauty Consultant’s ability to track her customer’s orders. All shipments will be in the special CDS packaging cartons. Once the order has shipped, the Beauty Consultant can use Order Status to see orders placed by her customers and check on specific order status.

Q. What type of e-mail notifications will be used with CDS?

A. A Beauty Consultant will receive an e-mail notification from the Company when her customer places her order and an order confirmation when the product order is submitted. A new e-mail notification will be added if the Company receives notice that her customer’s credit card has been declined through ProPay™ for a CDS order. You and your customer will also receive an e-mail confirmation once the order has shipped.

Q. Will my commissions/Seminar credit remain the same even if I use the Customer Delivery Service?

A. Yes.

Q. How will a Beauty Consultant track her sales when using Customer Delivery Service?

A. The Beauty Consultant will see the Section 1 credit in production on her myBusiness® reports, but that order will not officially show until the branches close for the month and the month-end process runs.

Q. Can a Beauty Consultant cancel a CDS Order and request a refund?

A. No. All sales are between the Beauty Consultants (detailed on CDS terms and conditions) and their customers, so there is no refund on the part of Mary Kay Inc. If the Beauty Consultant is refunding payment to her.