A consultant in Australia posted this as a comment on the thread about Mary Kay Australia and New Zealand closing. I’m posting it as a separate article to highlight the information.
We had about 4 NSDs but they all became Emeritus within the last 4 or so years (or were Emeritus – guess they are just retired AUS Citizens now!).
I had been in MK and became a director up until 5 or so years ago (and until yesterday a personal use consultant). I was a director right when AUS were on the brink of either growth or what we see now as an absolute collapse. For some years there was a lot of messaging from local Corporate and the NSDs about us needing to lift our game and bring growth, step up etc.
I think there were some very noticeable differences here in AUS in comparison to the US – i.e. no inventory options to purchase from when you commenced and never any expectation to purchase ‘a shop to have in the trunk of your car’ – in my personal experience in any event.
In my time as a Director there were very few new car driving directors either (cars not available below Directorship level) and those who drove cars I assume were making repayments back to the company based on the unit production you would see in applause. They revamped the car program in what I assume to be a way to try and get more visibility on our roads but that didn’t really do much either and the types of cars offered were certainly not eye turning on the roads, definitely nothing like the big pink Cadillac you see in the US – think white or black Honda H-RV (that was the most common) with pink writing and love hearts and well that is no comparison to Arbonne’s Mercedes.
We also used to have a 50% commission on sales (again I think the commission worked differently in AUS) and that in the past two years got reduced to 40 or 45% from memory in what was obviously an effort to keep them in AUS/NZ.
I have been watching from the sidelines for some years now wondering what would happen – the latest applause received in my physical mailbox today (of which included the new catalogue) showed that the 10th highest unit production in AUS for January was $12,697 AUD that is the lowest I have ever seen for a ‘top 10’ unit (I know January is ordinarily quiet and we had the awful bushfires but those figures still seemed shockingly low).
The decision to close here has absolutely blindsided all consultants and directors – no messaging whatsoever that it was imminent and the local corporate staff as I understand had no warning either. I had understood a directors webinar was held at 11am to inform them with us general consultants notified at 12.41pm via email with the subject ‘Announcement’ of which included a phone number to query how to return products and just like that everything was gone.
A sign of the times here in AUS – we have various Australian retailers going under at the moment too. An increasing cost of living, little wage growth and a largely casual workforce who don’t get consistent hours means that expendable money is limited – many people are shopping online to find the best deal/cheapest prices possible.