Recently Mary Kay Cosmetics made a change to the product return option for U.S. consultants. Previously, when a consultant requested the product return form, Mary Kay Inc. told the consultant the total amount of inventory she was eligible to return. She could return any products that added up to that total.
Now, Mary Kay will be telling consultants exactly which products they will be able to return. Consultants will only be able to return the specific products that they personally purchased from Mary Kay Inc. during the last 12 months as described here:
Repurchase Enhancement Launches Soon
Beginning March 16th, the Company’s 90 percent repurchase policy, which allows independents sales force members who decide to terminate their IBC agreement with the company the opportunity to return unsold products in saleable condition for 90 percent of her original net cost, per the terms of the IBC agreements will be enhanced.
Company systems have recently been updated, so when the beauty consultant calls to ask for a Request for Repurchase form, instead of receiving a generic form with part numbers that the beauty consultant checks off and mails back to the company along with product, a customized, detailed report will be generated, listing all of the items purchased within the last year. This report, along with further instructions, will then be emailed to the email address on file or mailed to their home address. The sales director will continue to be notified when an beauty consultant within her unit made this request. Due to this revision, the form will be removed from the Sales Director order sheet and and forms received by the Company after March 16, 2013 will be handled on a case-by-case basis.
This is no “enhancement” to the product return program. This is designed to decrease the amount of products returned by consultants.
How? Under the previous policy, consultants could trade products with other consultants and choose which products they returned. Consultants may have had older products (ordered longer than 12 months ago) that they couldn’t sell, but which could be returned up to the total eligible amount. Now, those older products can’t be returned, nor can any products that a consultant may have received through a trade with another consultant (unless the products received in the trade happen to be the specific products the consultant is eligible to return).
Under the old policies, consultant could engage in strategic ordering and trading that would help maximize the total amount returned. The consultant could also return expired products or products in the old packaging. Now, this is no longer possible. Consultants beware: The product return option isn’t all it’s cracked up to be. And now it just got worse.