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.