There’s No Such Thing as 50% Profit in Mary Kay

Written by TRACY on . Posted in Inventory & Selling

Those of us who have been hanging around Pink Truth for a while know that the idea of 50% profit in Mary Kay is a total lie. If a consultant sells all of her product at full retail, with no discounts and no giveaways, she has a 50% gross profit… out of which all other expenses have to be paid.

There’s not 50% profit, no matter how you slice it. And with this bit of sales magic, there’s even less profit to go around:

When you do a reorder or even meet someone say… “How do you like to get your cosmetics? Full price, Half off or FREE?”

She will say ‘what do you mean??’ You say… “Well – it is your lucky day – you were supposed to meet me – because when you become my customer you can have all of your cosmetics FREE for the rest of your life!!!!!”

For every purchasing girlfriend you get together for a makeover – you will get $10 of FREE MK! 8 girlfriends who purchase from me at a get together – you get $80 FREE!! So anytime you want cosmetics –just have a get together and you can get yours for free anytime- all year long!!!

Or… Half Off – Take the Look Book to work with you and get 10 orders for me and you get a HALF-OFF shopping spree!!! You can do this as many times as you want to!!!! Or – of course – my favorite – you can just purchase at FULL PRICE!! The choice is yours!!!

I realize that retailers all run sales and special offers that cut into their profits. It’s a gimmick used to get people in the door and get them buying. I’m not opposed to that basic marketing tactic.

Unfortunately, it seems so few sales in Mary Kay can be made without some sort of discount or giveaway. Every time you turn around, your director is telling you to give away a lipgloss, or offer a $10 free certificate, or give away hostess gifts,  and do a buy one / get one free, or discount the discontinued products.

Consultants certainly can’t earn a living this way.

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Comments (7)

  • Lazy Gardens

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    Profit is what’s left after ALL the business’s bills are paid, including any loans and credit cards.

    If you “invest” in a $4800 wholesale wagonload with money from your savings account, you won’t be making a profit until you have sold enough to put that money back into the account, as well as enough to pay for all your ongoing expenses.

    Every bright promotional idea your director comes up with invariably amounts to you increasing your expenses or lowering your gross income: the discounts, the fancy sales gimmicks, the Valentine’s roses … it’s all cutting into your potential profits.

    Reply

  • Trigger

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    It’s simply astonishing to me that when you enlighten mult-level marketers or direct sellers of these facts, they go ballistic and call you negative. They can’t believe you can be so negative.

    Negative? Numbers are numbers. They represent pure truth. Either you are making a profit or you are not. Black and white.

    At this point, the backpeddling begins with: well, I’m in it for more than the money or I just do this for girlfriend time or I just wanted the discount or I needed some me time.

    What? Is this what you told your recruiter when you were signing up? You weren’t interested in the money? Not even a little bit? Is that how she recruited you? She never mentioned executive pay for part time hours? Never mentioned her highest check? Never talked about driving pink? Absolutely nothing financial? Did she say you’ve just got to join this really neato girls club where we just love on one another and make you feel good?

    Reply

  • MLM Radar Detector

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    “For every purchasing girlfriend you get together for a makeover – you will get $10 of FREE MK! 8 girlfriends who purchase from me at a get together – you get $80 FREE!! So anytime you want cosmetics –just have a get together and you can get yours for free anytime- all year long!!!”

    Math time:

    8 girlfriends actually came to the party (probably because she told them this was girlfriend time and didn’t tell them this was really a sales and recruiting event). 8 girlfriends felt sorry for the hostess, and each only bought one lipstick or mascara. But since they each bought SOMETHING, the hostess qualifies for the $10 free gift times 8. It’s $80 retail, of course, so the IBC then hands products to the hostess which cost the IBC $40.

    How much profit did the IBC receive on the sales of 4 lipsticks and 4 mascaras? (Hint: it was less than $40.) How much money did she lose after giving away the $40 (wholesale) worth of products to the hostess? After you come up with that number, subtract out all the IBC’s other expenses involved in arranging the party.

    Oh, wait a minute. The hapless IBC didn’t “work her business” in the right way, because if she had the party sales would have been much higher. It’s ALL HER FAULT!

    Reply

  • Nutmeg

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    I got a woman’s name out of a facial box I had in my town (it was the only real name in there) and I invited her to my Monday night meeting for a free facial and makeover and told her for every woman she brought, I’d give her $10 in free Mary Kay! Can you get excited about that?! Well sure enough, she showed up and brought 3 friends!! The 3 friends bought nothing and she spent her $30 on a firming eye cream.

    My consultants were so impressed I had guests at the meeting, but not too impressed that it cost me money…

    Reply

  • Now You Know The Truth

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    Hopefully, in time all that is involve will realize there is no market for these products, just an endless recruitment chain proposition, which is impossible. Endless distributor recruiting is not a business. (like the big push to recruit several times within a year) It may be dressed up in a nice business suit, look like a career…NOT!, but the tools of a swindle are hidden underneath the fancy facade and behind the sly smiles. In time, the truth will always prevailed. Theives have no loyalty!

    Reply

  • Eyes are opened!

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    Surprisingly, that is the Mary Kay way. You must keep silent of the evil that you know for a fact is wrong, cover up, pretend to be a friend as long as you make them money, turn their head to negativity and recruit others to do the same. I have no respect for any women who know what is right and won’t uncovered the UNETHICAL behavior for the sake of maintaining their livelihood off the back of manipulating women to believe this is actually a career flopportunity. NO RESPECT at all!!!!

    “Right is right, even if everyone is against it; and wrong is wrong, even if everyone is for it” You have to have the stomach and guts to prey on women daily to believe in the hype of pretending to be successful when very few actually are. How ANY women chose to support this company in ANYWAY is unconscionable once you know of the FACTS. Mary Kay is one big deceitful pink hellish company which lift your wallet in the name of enriching and empowering women lives. No way possible to make a 50% profit or move up the career flopportunity without recruiting unaware newbies.

    Reply

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