The iconic pink Cadillac is seen as the pinnacle of success in Mary Kay. Ask the average consumer, and they will tell you that someone who drives a pink Cadillac is making lots of money. But the truth is that many are faking it.
Yesterday Mary Kay sales director Ali Zornes picked up her new pink Cadillac. There was lots of celebrating for this big accomplishment.
It all sounds great until you find out the truth behind Ali “earning” this car.
To earn the Cadillac, a sales director’s unit must order $102,000 wholesale value ($204,000 retail value) of products in a 6 month period. (That’s not how much they sell, it’s simply the retail value of the products they order.) In September, Ali’s last month of qualification, the unit ordered $58,599 retail value. Things went right down to the wire, with the unit getting just enough production to “finish.”
This means that in the first five months of the qualification period, Ali’s unit ordered a total of $145,401 retail… which averages out to $29,080 retail per month. In order to stay in that Cadillac, the unit needs to order an average of $34,000 retail ($17,000 wholesale) per month. In the first five months of qualification, they were well short of that amount.
A unit doesn’t magically start ordering more just because the director is driving a pink Cadillac. Past behavior is the best predictor of future behavior. So odds are that the unit will continue to order about $29,000 retail ($14,500 wholesale) per month. At that level, Ali is going to owe Mary Kay Inc. $270 per month in what they call a “co-pay.”
Ali got some awful advice from someone when they told her to fake it till she makes it. That once she gets to the Cadillac it will be smooth sailing. That the big money is right around the corner. It’s all a lie. She has set herself up for co-pays with a unit that does not support Cadillac production.