Let’s talk about this cruise that Mary Kay is offering to consultants in 2019. It’s a cruise to the Bahamas October 7 to 11, and when you qualify, you get to bring someone along. The cruise is on Royal Caribbean’s Navigator of the Seas, leaving out of Miami. The current cost if you just book yourself a room directly with Royal Caribbean is $491 per person (double occupancy) for the least expensive room (an interior). Mary Kay is also covering base airfare (no baggage or other fees, though). Consultants can take a “cash option” of $1,500 if they don’t want the cruise.To get this incentive, you have to purchase $3,600 of inventory in the first 6 months of 2019. You also have to recruit 6 new consultants who order at least $600 each in the same time period. (During January, qualified recruits counted as double, so you only needed to recruit 3 in January to meet this one.) Three of your recruits must also become “star team builders” for the first time during this period, which means at the end of a month, she has 3 active recruits. How much inventory is being sold to get this incentive:
- Winning consultant $3,600
- 6 recruits x $600 = $3,600
- 3 star team builders x 3 active x $225 = $2,025
- TOTAL = $9,225
Those total inventory orders of $9,225 are the minimum the company will receive as a result of this promotion. There will likely be other orders placed under the winning consultant as various recruits of hers go active and inactive, trying to achieve the goal.
So Mary Kay Inc. benefits to the tune of $9,225. They don’t actually pay $1,000 for the rooms. They get a discount because they’re buying in bulk. But even if they pay something on the order of $750 for a room, that’s only about 8% of the total they see coming in (at a minimum) from all this activity. MK can’t lose with this promotion.
The fine print:
- You can’t bring along a consultant or director in MK. So if you don’t have a spouse or significant other, don’t try to bring the friend or aunt that you signed up to round out your numbers.
- You pay for your drinks and your excursions. Mary Kay is covering the base cost of your room only.
All in all, it’s a better prize than they usually offer to consultants. We’re used to dollar store trinkets and dirty diamonds (for the “big” prizes at Seminar.) I can’t help but think promotions like this are evil genius. There are all sorts of consultants who will try and fail. The company gets all the money from the inventory orders, but doesn’t have to provide a prize. This is a well-oiled machine. I bet they can predict with 90% accuracy exactly how much of a bump in production they will get from this and how many prizes they will actually have to give out.
Another tidbit: Rumor had it that around the end of April, only 45 people had qualified for the cruise. That’s out of something like 500,000 consultants in the U.S. That’s pretty sad.