Profit Level Inventory

You’ve heard this Mary Kay lie many times before: $3,600 wholesale on your shelf is considered “profit level” inventory, and until you get to that level, you shouldn’t be taking any profits for yourself out of your “business.”

Realistically speaking, there is very little profit in Mary Kay to begin with. But this “concept” twists the financial aspect even further and uses faulty logic and bad math to convince consultants to place large initial orders.

Here’s how the Mary Kay explanation goes:

Please study this chart prior to sharing inventory with your new consultant. Study how long it takes to get to profit level.

Begin with 600 wholesale – Need to place 10 months of 600s to arrive at minimum of 3600. Reinvesting before making a profit.

Begin with 1200 wholesale – Must place 8 months of 600s to equal 3600.
Begin with 2400 wholesale – Must place 6 month of 600s to equal 3600.
Begin with 3000 wholesale – Must place 2 month of 600s to equal 3600.

Are you being fair to your new recruit by bringing her in with less than 3600? Look at what profit could have been made.! Ask yourself this question…Would “I” have rather made 3000 during those 10 months or reinvested and had no profit to apply to my families’ budget or to debt reduction?. Which way would produce a happy excited powerful consultant? Which consultant (600 or 3600) would more than likely be still involved with MK even 6 months down the road? Choose to operate from your power and leadership and guide her to invest profit level!

Here’s the real truth:

There is no need to get your inventory to some magical “profit level” number before you’re entitled to take a “profit” out of your Mary Kay business. That’s the first problem with all of this.

The second problem is that $3,600 wholesale on the shelf is completely unnecessary. It is just tying up money and it’s unneeded. Further, as a new consultant, you should NOT be ordering this much. You don’t know if you can even sell any product, and you have no idea what you’ll sell. Ordering this much to start is one of the worst things you can do.

This document is just a deceptive tool to get consultants to order far more than they should. It’s set up to make you think that you need this much inventory to be “successful.” You don’t. This much inventory actually works against you.

7 Comments

  1. Char

    The recruit is being persuaded to buy inventory to be able to “sell” to others.

    Recruits should ask themselves why the consultant isn’t selling that recruit inventory from her own shelf! She should also be asking why she would then be expected to recruit others when she is suppposed to be selling the inventory she’s being convinced to buy!!!!!!

    Read that again^^^^^

    It’s not a selling business. It’s not a business at all. It’s MLM scamming you into BUYING product.

    1. MLM Radar

      What you said.

      “Profit Level” is only profitable for the Director. When you buy $3,600 she gets 13%, which is $468. If you’re classified as her personal recruit she gets 26%, which is $936. Plus she gets bonuses: unit ordering, fast initial order, Star order…

      What do you get? Just a room full of about-to-be discontinued and limited edition products that won’t appear in next month’s Look Book. So even if you can find customers, most of what you have will go unsold.

      Profit Level for you means nothing when you’re ordering faster than you sell. If you’re not selling as fast as you order you’re LOSING money.

      Oh yes, you’ll also get a big credit card bill. And in about 2 months you’ll also get month-end phone calls to STRETCH and place another order to help the Team.

  2. cindylu

    Worst are the dumb I stories, the yada yada yada and someone magically became a director, a SD or wow an NSD. Truth be told when sitting in on those creepy, conferences, seminars etc. The focus on MK herself. The blaming the consultant or directors for the major flaws within this mlm. Supposedly this company was designed to help women. In reality the only ones being helped are a few NSD’s and MK heirs. There is no allowance of critical thinking and no room for questioning the shortcomings. Expenses are endless, there is no where to advertise and the market is saturated. I totally regretted ever being conned into joining MK and wasting my hard earned money on this scam. I also felt awful when my narcissistic selfish SD recruited women who wasted their grocery money or welfare check on this fraud. When I sent my products back, it took me quite a while to over come the damage done to my psyche. All I wanted was the ability to earn a bit of money and be there for my small children. Instead I ended up losing money and time. There was no internet back then. I also came to realize that the sense of loss, confusion and hopelessness were normal results of a huge let down. I wanted to believe in MK. I trusted that the company was real and truthful. Instead it was a pink nightmare.

  3. Pinkiu

    We can guarantee what your goal ol’ SD will do. She will persuade you to buy the $3600 level because of the “free” product. THEN, she’ll offer to order for you since she k owns the product line so well. THEN, she’ll be sure to order you things that she know will be fphased out soon and other items like men’s products, perfume, and colors that no one buys. Why would she do this. So that you have to place another order.

    1. BestDecision

      With the new color line coming out in 2 months, we all know a lot of new people are getting stocked with all the crap that’s to be discontinued. And not told a peep about it!

  4. Lazy Gardens

    Every business (real business) I have ever worked for made a practice of keeping inventory levels AS LOW AS POSSIBLE. There are classes at business school dedicated to inventory management. There are web sites that discuss it.

    And none of them say there is a magic $$$ amount. The only people profiting ftom Mary Kay’s “profit level” are the company and the upline.

    https://smallbusiness.chron.com/inventory-affect-profit-loss-56297.html

    https://acctivate.com/managing-inventory-for-profitability/

  5. Lazy Gardens

    And this one …

    “Having high inventory levels generally means your company is struggling to turn over inventory and make sales. When you have a high level of inventory, you face significant costs and inventory management requirements that have disadvantages relative to companies that have better inventory turnover and require less resource utilization to manage inventory.”

    https://smallbusiness.chron.com/disadvantages-high-inventory-levels-20400.html

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