Another Mary Kay Inventory Con

Written by TRACY on . Posted in Inventory & Selling

I am consistently amused by these types of documents that Mary Kay sales directors use to convince women that they need inventory. No one is “holding a gun to their head….” True, the new recruits have a choice. But over and over they are told the only way to succeed in Mary Kay is with BIG inventory.

Who signs up for Mary Kay with the intent to fail? Mary Kay consultants are taught to always take the advice of the sales director who has the experience and knowledge and is looking out for the consultant’s best interest.

Not to mention the fact that we all know that $6,000 wholesale is NOT needed to service 50 customers. Let the lies begin with one sales director’s presentation of inventory options:

Double Diamond – $6000 Wholesale
Starting with the Double Diamond Package is Awesome! This package will service approx. 50 customers, but not on a full line of course. However, it will start the foundation of your business on a level that will give you the confidence that you need to make sure that you will have what the customer will be needing. Starting your very first month you could feel assured that you could easily do 3 shows a week accomodating your New Customers with on the spot delivery, just like the department stores, only better because of the personal touch.

Super Achiever
$5000 Wholesale
Keeping in mind this is a little less then our Double Diamond package, however, not any less effective! It will allow 3 appts. per week with on the spot delivery to your newest customers plus giving you the freedom to book future appts. (approx . 3 more appts. not classes per week) will get you started in the right direction with your new business.

Emerald Star
$3600 Wholesale
The Emerald Star Package is my very favorite!! Why? because it gives the brand new business owner a complete line of the products she will be offering to her new clientele plus a little more. Keeping in mind this is just alittle bit more then one of everything that Mary Kay sells and even though that’s not much, it’s my favorite because it gets the new business owner comfortable with our product line.

Diamond Star
$3000 Wholesale
This level of success and below are for those who will just want to experience Mary Kay, not work it like a real business and here are the reasons why: #1 it is impossible to Deliver something we don’t have. I have come to learn that we can talk, but if our business is going to run like a business we must first understand how important it is to DELIVER! Let’s first take into consideration that just one of everything that Mary Kay sells is $2524 wholesale. Yes, one of everything will get you started, but thats just about it. If more than one person wants the same color, well, I think you know where this is going.. It’s not to say that any of these packages are wrong. In fact quite the contrary, each package is set up to service so many people and to help you get your business started with knowledge and understanding of just what each package is all about.

However, sometimes when we are making money decisions, we don’t take time to stop and really think about our own personality, and that right there is the “Big Mistake”. Because the very same way you would like to be serviced is going to be the very package you will really want. However, most importantly it will also be the very package you need. Why? Because starting at the beginning, you are going to be the very same person in Mary Kay, as you were out of Mary Kay and you are going to treat people exactly the same way you would want to be treated… which serves to show my point! In other words, if you were a previous user of Mary Kay, and loved having the products when you ordered them, (on – the – spot -delivery) then you will know how that feels to NOW what your future customers will come to appreciate.

So, the REAL question is not what you can afford, the REAL question is how do you want to run your business, and what would you like to accomplish? Different investments result in different accomplishments and personalites! This is not sometimes what the invester wants to hear, however, it is a hard vast business rule of thumb! Smaller packages = smaller thinking = smaller results!/ Big Packages = Big Thinkers = Bigger Results! I have found that the price that we are not-willing to pay, sometimes, becomes the Biggest Price of All!

Beginners Package
$2524 Wholesale
Approx. one of everything

Ruby Star
$2400 Wholesale – not even one of everything

Sapphire Star
$1800 Wholesale

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Comments (14)

  • bellaone

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    When my BFF started MK, she did a 3600 because her director told her it was the only way to start and be successful. Over five years later, product from that initial order is STILL sitting on her shelves. Even worse, the director didn’t order any foundation in the darker tones because no other consultant in her unit had darker skinned customers, so when I decided to help out my friend and order from her she didn’t have any foundation or pressed powder for me.

    Reply

  • Lazy Gardens

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    $3000 Wholesale
    This level of success and below are for those who will just want to experience Mary Kay, not work it like a real business

    Beginners Package: $2524 Wholesale Approx. one of everything

    Ruby Star: $2400 Wholesale – not even one of everything.

    ===========
    Wow! Just call anyone who wants to start slow and see what her market is like a piddling amateur, why don’t you?

    Wonder what she calls a $200 order?

    Reply

  • TRACY

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    This is Mary Kay’s “official” inventory options worksheet:

    http://www.pinktruth.com/images/MKCorp/inventoryoptionsworksheet.pdf

    It is very similar to a sheet I was given when I was recruited. Notice that the worksheet gives you points depending on how many appointments you want to hold and how much money you want to make. Those are legitimate things to consider, but no one is going to tell you how difficult (if not impossible) it is to hold 3 classes a week and make $1,200 profit per month.

    More telling is the fact that you get points if you WANT to be a car driver or sales director. Sorry, but those don’t dictate the amount of inventory you need. They are only on the sheet to inflate how much inventory you “need.”

    Magically, I needed $3,600 of inventory. And the sheet I received lied about how much the “average profit” is per class. The numbers shown inflated how much I “needed.”

    But new recruits are told to rely on the experience of their recruiters and sales directors. And by the way… those are the people who benefit directly from larger orders. So it’s no wonder that those folks are telling women they “need” much more than they actually do.

    Reply

    • MLM Radar Detector

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      WOW. That inventory worksheet is loaded with Red Herrings.

      That sheet has makes no mention whatsoever about how many customers you think you’ll have, nor how much you expect you can sell to each, nor how often they may buy any particular item. But those three numbers are the most important numbers any business needs to set its inventory levels.

      What I DESIRE to sell has absolutely no relationship to what I really can sell, especially when no one shows up at a party. I desire to go to the moon. Should I start building a tower of MK inventory boxes?

      How I want to spend my money, how often I attend meetings, and how many people I want to recruit are all irrelevant to the inventory calculation. In Mary Kay’s “dual-marketing” plan you don’t sell your inventory to your recruits.

      Reply

  • enorth

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    Oh, the wording…

    $6000 Wholesale – “give you the confidence that you need” and “you could feel assured”

    $3000 Wholesale – “not work it like a real business” and “impossible” and “Big Mistake” and “Smaller packages = smaller thinking = smaller results”

    $1800 Wholesale — ::crickets::

    Reply

  • joan

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    Do MK consulatants have to purchase the testers with thier own money? So products and poerfumes the show the customers are bought by the consultants? Thats a rip off

    Reply

    • Lazy Gardens

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      Yes, they have to buy the samples, and the display products, and the makeup mirrors and supplies, the carrying cases, and all the fancy frou-frou they use for packaging, and their business cards.

      Those expenses come out of the so-called “50% profit”.

      Reply

  • 4:8 girl

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    No matter the size of your customer base, I can’t imagine needing to keep $3600+ on your shelf at all times! Espec if you are encouraged to order every month anyway for whatever clubs your unit/area are participating in. After 10+ years, I have finally decided to leave MK for good & was packing up my inventory this morning to return. WOW! I am gonna LOOOOOOVE that blue check! Like many consultants/directors, I’ve had mixed feelings (maybe even ambivalence?) about this, yet as I was going thru everything, there was a tremendous sense of peace & relief about it!

    Reply

  • dragonlady

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    With $7,240 of inventory on my shelves I am looking for any other way to get it out of my house than to return it to the company for a meager 90% of wholesale value. I feel like an idiot for ever believing my recruiter’s propoganda. I have supposedly sold $4,000 retail last year but I never made a penny, trying to stay active and attend all the training offered. I love the product but I cannot follow my directors advice to take what I will use over the next 5-7 years off my shelves before packing up the rest to return. I am just praying they will send me enough to pay off my debt. Is ther any other option?

    Reply

    • MLM Radar

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      Congratulations on clearing away the pink fog. Welcome back to real life.

      Returning to MK corporate is generally going to get the best percentage. The bad part is that they’re only going to let you return what you purchased within the last 12 months. I’ve heard, however, that they don’t check to see if you’re returning particular products item-for-item; if you purchased 36 lipsticks and you return 36 lipsticks it should be all good.

      The best part about that is MK Corporate will also refund you the sales tax you paid up front on the “full retail” value. Remember that you paid double on the sales tax – you bought at wholesale, but they charged you tax on the retail rate. This is a nice chunk of bonus change; no other disposal source will refund you the tax double-charge.

      The next best part about returning to MK Corporate is that the company will hold your arm-twisting propaganda-spewing recruiter and her director accountable for their manipulative lies. MK corporate will take back the commissions they received on your purchases. This is why these ladies are so eager to convince you to “hold a sale” rather than return products. The intrinsic satisfaction you receive from knowing they have to pay for their manipulation is ever so good.

      So if you “sold” (meaning bought) $4000 retail during the last 12 months, you can return $4000 retail. You’ll get back 90% of the wholesale price plus the sales tax you paid on the retail price. Be warned, however, that if MK has slashed the price on some of your return items, they’re going to try to cheat you by paying you 90% of the current price. Be prepared in advance to defend the price you paid by sending them receipts showing you paid the higher price (keep copies).

      As to the rest of your inventory, the stuff you bought more than 12 months ago, MK Corporate won’t help you. If the stuff is still good, your next best option is eBay and CraigsList.

      Reply

    • Lazy Gardens

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      That 90% of wholesale has the advantage of being in one chunk.

      But here’s my “Get out and maybe break even plan” for you

      1 – Tell everyone you know that you are having a going out of business sale on Mary Kay products: 40% off, CASH UP FRONT ONLY, they pick up when the order comes, and that you will place one order on __Date__. Post ads on community bulletin boards, Craigslist, etc.

      2 – Take the orders, save up the cash, and place the order … this will increase the amount of old stuff you can send back by that amount. Selling $500 of fresh skin care means you can send back $500 of stale foundation.

      3 – After that last order comes, call MK and find our how much you are eligible to return … your SD will have a cat-fit because she will have seen a big order to make her happy, then hear of an equally huge return.

      4 – Fill out the product return spreadsheet – where there is obsolete or reduced price product, highlight it and include a copy of the sales slip showing what price you paid … they should honor the proven price.

      5 – Pack it up and send it back.

      Reply

    • nikki

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      Ebay

      Reply

  • Once A Fool

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    More friendships have been ruined by MK than friendships gained. My SD, a FORMER bestie, sold me up the river. I know, I know, no gun to my head, but she promised she would show me the secrets to success — like her — after I ordered a ridiculous level of inventory. Out of the business now, I donated what I had left after the “fire sale” to the local high school for the Drama Department. At least I know all that make-up is being put to good use.

    Reply

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