"Profit Level" Inventory in Mary Kay

Lurkers, listen up.
You do not need a set or "profit level" inventory to do this business successfully.
You may have some inconvenience because you do not have something, but most people will wait.
The ISSUE here is that the Company is changing product often, more often than formerly. (Black Compact Change is a prime example. They told everyone about the pink Miracle Set changes sooner because Pink Truth scooped MKC on the Black Compact.) This makes ALL your Product obsolete faster than in the old days.
Since there are no returns of obsolete product, once it's on your shelf and you own it, well, You Own It. Then You Take a Loss on Obsolete Product.
Think Lean and Mean about Inventory. Don't stock lots of extras of Anything.
Let the Distribution Center do that for you.
The main goal of the Company is to get it off Their Shelves and onto Your Shelf. If you can't sell it quickly, don't buy it. You may be staring at it on your shelf otherwise.
Evaluate any specials offered. Soon to be Discontinued Product may be involved.

What are the first two things a REAL company does to increase profits?

They cut expenses and lower their inventory levels, because inventory is a money-loser for them. No company I have ever worked for looked at piles of inventory on the shelves with a big smile.

The carrying cost, the money you spent getting it (buying or making it), the interest on any loans, obsolescense, losses to damage and theft, the cost of taking inventory, inventory taxes (in some states) .... it's all lowering your profits, not increasing them.

Read this:
http://en.wikipedia.org/wiki/Just-in-time_(business)

And this:
http://en.wikipedia.org/wiki/Carrying_cost

The "Profit Level" Inventory they are pusing is what is known in manufacturing as "Just in Case" inventory. You stock some ofeverything, including things that only sell once every decade, just in case someone asks for it. BAD IDEA!
http://en.wikipedia.org/wiki/Just_in_case

My issue from the inventory perspective is that so many of us come into this business without any background in business. I had no clue how to manage my business money or inventory when I started MK. I began my business on the advice of my sr. director with an $1800, but then kept pouring ALL my sales $ back into more products because I never really knew where I was-- Am I on profit now? Nope, put another order in. Funny thing, my sr. never questioned this tactic, or attempted to counsel me either.

I also advised (insert cringe here) all my unit members not to start at $1800 because, "it's too confusing. Better to start on profit with $3600 and know where you are from the get go". Geez. I apologize to all those people for my inanity.

LazyGardens, again you are so absolutely right. MK does a great job of cutting their expenses and lowering their inventory levels by pushing them out the door to consultants. They don't want that junk in their warehouse. As we all have said before, they make their money selling it to consultants. When they sell to consultants it is the end of their worries. If they can push $3,600 on every consultant, imagine what they make. They may get some returns, but obviously most MK ends up on Touch of Pink, E-bay and Craigslist. That number, $3,600, is just a big random number that someone threw out as a joke probably. Only in MK they decided to keep it.

Lurkers -
If you must do MK and are just starting. I would only order a min $200 to be active. Stick to very basic items that tend to sell best: skin care, satin hands, mascara, lipsticks. Then only order to replace what you actually sell and really need to fill orders. In this day and age of online ordering and fast delivery, you don't need inventory on hand. If you build a solid customer base that regularly reorders then perhaps you can keep a little of what they use on hand to service them. Please hear my heart: only order from the proceeds of your sales! Above all, do not take out a loan or max out a credit card for inventory or to "win" a cheap star prize/trinket! Do not go into debt to do MK! It simply isn't necessary. Your director/recruiter will not be pleased that we are discouraging inventory. They will pressure you to order a large amoun. The women here speak from hard learned experience.

I frankly think that someone at MK figured a $3600 wholesale order would be profit level - for MK Corpse and the NSD's. They said gee, if we could somehow convince every new consultant to come in at that level, we'd really have it made - ka ching! That amount was set for no other reason. Sorry to be so blunt but that is my opinion.

I was outraged that I was talked into inventory a WEEK before the big "mineral line" came out. I was then told that I couldn't wear the old stuff because customers would want the new stuff and I was told to be "go-give" and donate it to a women's shelter. Yes, that was a nice thing to do, but the Directors knew our stuff would not be needed.

You will need to order every 3 months anyways to receive commissions and to get the Limited Edition products, so there is no reason to stock $3600.00, especially when they change products so often.

Most women join Mary Kay to make quick money, not to build an inventory for 10 months.

vintagegold - I ordered inventory 3 weeks before the major change from pink to platinum. Not one word from my Director. Her senior/future NSD who did our meetings didn't say anything either. I know she at very least knew the change was coming - she is very well connected in the company. Then I was told by them and the company to "pink sale" it all at 50% so I could "reinvest" in the new platinum stuff. I was furious.

Yes, Directors know product changes are coming in advance, but their job depends on the new consultants inventory orders. They could bring 1,000 new consultants into the company every month, but if there aren't inventory orders, Mrs. Director loses her job.

How can they say that is ethical when product changes are coming?

Yes, there are even bigger Director bonuses(contests) right before product changes so MK can unload their inventory onto consultants shelves.

They are not interested in enriching anything other than themselves.

If you absolutely MUST do Mary Kay, despite our best counsel to you, lurker, order WHAT YOU USE. That is what my first recruiter told me the first time I joined (yeah I was so smart I did it THREE TIMES DUH....) Anyway, I ordered the products I used because I was "sold" on them and when people said they loved the color of my lipstick I had it on hand. I kept a very minimum on my shelves. Two or three complete "basic sets" etc. But I was constantly told I could not take any money out of my business that I HAD to get more inventory on my shelves. Fortunatly the last time I had a fabulous director who had gobs of inventory and always would trade or let me buy anything unusual from her. I don't think they are supposed to do that. So that is not a usual scenario. Now, you can't hardly keep just a "couple of basics" on your shelves - the line is too large. Remember this - Inventory on your shelves is costing you several prices: What you paid, interest on the money you should have in your bank account and not"invested" in product on your shelves, or the interest you are paying on your credit card, the SPACE in your home and the frustration you experience seeing it gather dust.... The irritation your spouse experiences (spoken or not) - Take it from those of us who know - the price is TOOOOOOOOO HIGH. Every day one single product sets on your shelf it is costing you money. Stores know this - they keep inventory low. Ever been in the back of Walmart? They have VERY little product back there They order in what sells and know that every day anything is on their shelves it is COSTING them cash flow, interest etc. Worst of all is the PRICE you pay in the sacrifice of your integrity and self worth in the long run.....

Oh YEAH this is how they got me with the $3600 initial inventory order. As I mentioned in the CC Article that appears before this one, my SD actually tried to do a $4200 order first, but by the time sales tax for my state, shipping and etc., was added it was over my CC limit and she had to "reduce" my order to $3600 in actual Section 1 product. My total initial inventory ended up being right at $4700 as my SD "knew" exactly what I needed in my Section 2 order and purchased that for me too (how fricking thoughtful of her) She left me with only $300 on my line of credit.

The comment of how badly an IBC might feel in 6 or 8 or 10 months down the line if she "discovers" she lost out on all that income she would have made because she didn't place a minimum $3600 order, IS A COMPLETE LIE AND TOTAL CROCK!!!!

Lurkers and those considering your first inventory order DON'T BUY MORE THAN JUST A FEW BASICS - A COUPLE OF SKIN CARE KITS, SATIN HANDS, THE NEUTRAL COLORS OF LIPSTICKS, ETC. Someone else mentioned that here in their post. Follow their advice!

I had the $3600 order to start with and I WAS TOTALLY DONE in financially by the end of my first 6 months. The product line changed two months after my first order, I didn't have the money to update to the new skin care (the mineral lines) and in total I only sold $600 worth of products before I was de-activated and lost my 50% discount. I could never afford to get the new stuff, not even samples to demonstrate where "people could try before they buy!" My "career" was finished in 6 months because of ordering too much inventory! Don't make that mistake if you want to risk doing this business.

Believe me, even if you can sell what you order, you're still risking a lot trying to make any money by being in MK.

anyone else having issues with reading the article and comments again like last time? The right hand side of the margin is being cut-off again like it did a couple of weeks ago.

I am having the same issue with the side margins.

I so agree with everyone on the initial orders! I started out with the $3600 package and bought the "full store" bs that I was taught. I made it a point to have atleast one of everything and when the reality hit after the large warm market I had was saturated...it was a sinking ship. DON'T INVEST!!!! Like it was mentioned regarding real companies...they are liquidating their inventories to run a lean and tight ship to survive...So why would anyone think that an IBC should stock up on crap that will NEVER sell? Oh, yea, its so that MK Corp. makes money, duh, I forgot about that!!!!

yep, my margins are goofed
up again too.

Back to "profit level".If you booked
8 to hold 5 as is commonly taught
(like that's a reality), the 5 classes would be over 2 weeks @$300.
$1500.00 retail.
You would still have 5,700 on your shelf, AND STILL HAVE TO REPELENISH what you just sold...so 750 and tax on 1500, and shipping and section 2. $900 for the order, $400 left. But it's October and there's sure to be a retreat you simply MUST ATTEND! Got to be professional casual now, so go get a cute outfit and look sugar sharp! Room fees, event fee, looking good fee, slammin hair fee, and guess what?

Its November..start over!
Book 8 to hold 5...Oops, so many cancelations...Better warm stalk and get Holiday product !! Order money?? You spent your order money?? You mean you replaced your skin care and other items with that second order and now you only have 200 bucks to order Holiday?

How can you bool without Holiday? So you owe 4K on the card, you reordered 900 from sales, you spent 400 on looking slammin and attending...
And now you place a 400 wholesale costing 500 bucks and add $300 more to your debt.

Sound familiar anyone??? Cause you cant sell from an empty wagon! But don't worry, you will SELL IT, and Now its DECEMBER.

Open House!!! BAD MOVE!!! You will spend $200 on wrap and food and drinks and have 3 people show up. Try holiday Coffees. YEA! One box of product is demo and One box you can sell..immediate $200 loss.

Even if you hold 10 coffees @ $200 throughout Dec, you are making 800.00 at a very stressful time, but hey, you have Christmas funds, right? Except its JANUARY!! new Skin Care!!! All the Look books will carry the new stuff, so You simply HAVE TO get current product...

Anybody remember that 5,700 worth sitting on those shelves back from 3 months earlier?

You want to know how the debt happened? Here ya go. And oh! Its January! Back to Basics workshop is right around the corner and DONT FORGET CAREER CONFERENCE!!

If I had just ordered the basic skin care (not including foundation) and the Satin Hands sets, and eyeliners, I would have done just fine.

Now I have a million Targeted Action Line reducers (which are very expensive and by the way, work great on the lifeline on your PALM but don't work all that well on your FACE). Good thing I'm sending them back. Nobody wants those. Or all those lip glosses that are crazy colors. If I had 8 Melon Sorbets, I would have been all set.

Raisen, isn't that the truth. You have said exactly what happens, especially to the IBCs roped into the classic inventory scheme. Even doing MK twice, I slipped into this scenario over and over again. I'd bet this happens to most IBCs who stay in awhile, like I did, trying to make MK work. Profit level -- there is none!

Raisin - you're right- that's the vicious cycle that happens in MK - the insanity of what the company pushes and sd's push. If they aren't pushing you to order, they are pushing you to attend something. Either way, it's money out of your pocket and you lose out.

Hi Lurkers:

Still think you need inventory because customers will not wait and you can't do business from an empty wagon? If so, how do you explain Avon? My Avon consultant doesn't carry inventory because her upline discourages it, and I don't mind waiting for my order.

MK has changed the inventory so many times in the past few years that they've lost their product identity in pursuit of "cutting edge" products and "on trend" packaging that has become an outright joke. Except to the poor consultants who have thousands of dollars worth of outdated and soon-to-be outdated product sitting on their shelves. Yes, directors know far in advance when the line is changing. And yes, they continue to push the soon-to-be outdated product so they can meet monthly production. And make no mistake, production is Kaybonics for quota.

Think MK has to continually change their producs to remain "fresh" to compete with others? If so, how do you explain Clinique? The packing is the same green color and the same "C" logo today as it was when I started using it in 1976. And I have a collection of GWP minis to prove it.

If you are still determined to carry inventory, don't order more that you can personally use or afford to write-off when the line changes. You don't need to order every quarter either. Order what you want, when you want. I order what my mom uses when she need to replenish her inventory. It's 2-3 times a year at $400 retail and it's only what she needs. She doesn't have to deal with an annoying, pushy IBC to get the few things she wants. I let her "break the basic" all she wants.

I get the annoying "you're inactive" reminders but I ignore them. So what if I now get cheap postcards for my birthday and Christmas instead of cards in envelopes? That's the commission my director gets on my infrequent orders but it's fine with me.

I'm not having a problem with margins, but earlier today I tried to log in several times and it wasn't taking. It just happened a few times tonight until I signed in and checked the box that says to remember me and it let me in.

My 19 year old daughter has an aquaintance who is hounding her to join MK. She came to me and asked what was with "those people" that they are so annoying and wondered why consultants have to buy inventory when it's a buy-online world and everyone waits a few days to get their stuff. I told her that that they'd probably be bankrupt in 3 months if they had to survive on what actual users purchased, and that they count on consultants buying huge inventories they don't need. She told her friend that and the friend told her that it isn't what she thought it would be and she wants to quit.

And that is the problem, NoMKBShere (love the name!). People are willing to wait. We are far from a society that buys everything in stores (ironic how we've swung back to "catalogue (read: internet) shopping," isn't it?). Women are more than willing to wait for their product now.

I had two women who ordered from me regularly, massive orders because they prefer to order when there are sakes and stock up for six months to a year. They are always more than willing to wait.

The woman who doesn't have an extra on hand, or who waits until she's completely out does so for one of two reasons: she's low on funds and feels she has to wait until it is absolutely necessary to purchase her product or she's forgetful and never remembers what she needs until she's out. Neither one is going to order much, and are the only ones who care if you have product on hand. They also rarely buy much, and aren't dependable customers. So why on earth would you stock thousands just to have these unreliable customers?

All of my best customers were more than happy to wait for their orders, and had no problem meeting me to pick them up. Most of them also shop online, so I had no need to do PCP. For a green company, you'd think they would be putting a cap on PCP.

The entire thing is a scam, from inventory levels to the determination to get women while they are in the throes of emotion, rather than talk to them rationally and honestly about "opening a business."

Twinklefree: you are absolutely right. Most women do come in without a business background. They bank on that. People like me, who've owned their own businesses, can only be snowed for so long. I know how to run a checkbook, how to take care of expenses. I also was impressed by the touted "numbers" and figured I could do this. When the numbers stopped adding up, my questions became more and more intense. Then I was told that you don't really make serious money (which is what?) until you get to directorship. Which I aimed for that, and once I realized how little most directors were making, the questions piled higher and deeper.

Women who don't understand business and how to run one are convinced their directors are giving them good business advice and money systems, and don't know until it is too late that they've been screwed. This company - these sales directors - abuse people based on their lack of knowledge and trusting hearts. It's disgusting.

[quote]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?[/quote]

Wha? I'm confused now. I was always told that loading up on inventory was not debt, it was an investment in my future.

And, Okay, how many times do we hear women saying, "Oh, you must have had a bad director. Don't dump on the whole company because of a few bad apples!"

Look how many women responding to this article report that they were loaded up with products that were soon to change? Add one more: that is exactly what happened to me, and of all the lies I was told and devious actions I witnessed in Mary Kay, that infuriated me the most. You're damn right the directors know about upcoming product changes/packaging. They load you up with that soon to be obsolete crap, knowing you will have to be ordering the new stuff.

Mary Kay is such a crock.

"Still think you need inventory because customers will not wait and you can't do business from an empty wagon? If so, how do you explain Avon? My Avon consultant doesn't carry inventory because her upline discourages it, and I don't mind waiting for my order."

Avon has changed so much. Like MK, they are guilty of changing their packaging on a frequent basis. This year, the introduced the Smooth Minerals line and *already* changed the packaging (added a sparkly logo to the cover and changed the sifter), just in time to make the reps stock so passe that they have to sell at clearance. Or return it and get slapped on the hand.

Avon really messed up on their new gift box for jewelry, too. They'd send reps earrings in the old package, matching necklaces in the new, so the customer looked at it like, "Now how can I give this as a gift?"

The same ploys that MK uses are used by Avon too. Every reps "What's New" magazine is filled with rigged "stock-up" offers.

Yes, the game is rigged.

ciavyn - you are exactly right that they count on women's lack of knowledge and business skills!

The NSD's recruiting manual has as an objection overcomer:

"We prefer women who don't have business experience...because it will be a great learning opportunity"

Lately I've been having a YouTube dialogue regarding inventory with an NSD's son.

In part:

NSD's son: "mary kay never said it was a get rich quick scheme she said it took hard work and dedication to be at the top."

Scrib: "Yes, when one is on the Mary Kay career path, it takes the hard work of...manipulating [women] into ordering big inventories. I can cite several NSD quotes which encourage MK recruiters to push the 3600 inventory level (NSD Pam Shaw, NSD Mary Pat Raynor) or to only talk about the top three levels of inventory in recruiting interviews (NSD Stacy James).

Are these NSDs correct? And if not, does your mother teach otherwise?"

"They push big inventories because that shows your serious about the business and the company gives you more bang for your buck...even at 3600 thats not even close to what it would be to start your own business...so "pushing 3600 is not really pushing anything its like pushing an ant compared to pushing a 1 ton bolder...so your point is not valid...

"I'll wager that there's few women who do not enter an MK business with a serious mindset. A higher inventory is a poor yardstick for measuring "seriousness." Even Corporate agrees with me:

If you plan to build your business gradually...then choosing to place a $600 wholesale order probably will suffice. (Inventory Answers, Applause May 2007)

If Corporate says $600 is plenty, where do the NSDs get off pushing the higher amounts? Who is correct?"

Understandably, the conversations have been quite lively. And by "lively" I mean I've been called several names in the process.

I remember when my SD/NSD said I absolutely had to have one lipstick in every color and I dutifully ordered every shade. Ten years later I think I still have some left. I hate it that I didn't listen to the suspicions that were rising up in my back then. Instead I took the blame for not making any money in MK. What was wrong with me when everyone else was sooo successful? We didn't have Pink Truth back then.

However, I must add that I always tried to tell my new recruits about the product changes and would not order them stuff that was about to go obsolete. Yet, I was still accused by some of perpetuating the MK scam because they would not come to meeting, weren't active and thus didn't get Applause. Product changes would take them by surprise and they'd be furious at me. Why oh why did I put up with all this can't win crap for so many years? Evening trying to be an ethical director doesn't work when the company you represent is running a scam.

I hear ya, itsnotjustme, I think we lived parallel lives in MK. Thank goodness we're OUT!!!

Hey Scribbler, Where can we have a look see and possibly join the conversation?

Hi there, I have been a long time lurker. I won't go into all the specifics right now, but I was suckered into signing an agreement at an old friend's debut. Luckily, the next day or so I discovered PT! My question is, I never, ever placed an order to become active,but I received the Applause magazine in the mail! Does that mean someone used my name and activated me without me knowing????

Link to the vid and the ensuing discussion:

http://www.youtube.com/watch?v=XqUq09Pixa8

If the link is faulty, just go to YouTube and look up the "Hungry For Answers: One Mary Kay Consultant's Journey" vid.

Special note: if anyone chooses to respond to this fellow, do it with level-headed class like I know you guys would. He has called me "lazy" from the get-go (thinking I must not have worked my business), but when I told him I was never in MK, he called me lazy for not having given MK a chance.

Damned if you do...and you know the rest!

The reason you can't sell MK is that you can find good products from other companies that are less expensive than MK wholesale prices. Victoria's Secret has Beauty Rush Luminous loose
powder eye shadows that are 5 for $20.00. MK new loose powder eyeshadow are $7.00 wholesale, $14.00 retail. Also, If MK wants you to have a $3,600.00 profit level inventory, they should loan you a pink Cadillac Deville to pimp the stuff on street corners. LOL Kind of drive this suff around like an ice cream truck. LOL

Yes, Molly, it sounds like someone has signed you up. Call 1-800-MARYKAY, and tell them about it, ask if you are a consultant now, and tell them you want to be terminated.

I hate that directors order shit for new consultants that does not even sell. New BC's should only order miracle sets, microderm,firming eye cream and satin hands. That is what sells the most! I showed eye primer and only sold 1 ever!

Ciavyn..helluva great comment! Totally true.

It seems obvious to me, someone who has been successful in the corporate world, and who is a business owner as well as a mary kay consultant currently that people who honestly beleive there is little to no profit in the marykay business are dillusional about what it takes to run any business successfully.

The profit margin in MK is the highest you will see in just about any business. There are exceptions to this like in all things and some of us just get lucky. I hear a lot of complaining about how horrible MK is (really?), but there is little to no recognition for the amount of money and investment the company provides for the consultants for marketing materials, research & development and not to mention the legal stuff. If you were to produce and source a fraction of the materials and business services a company especially a cosmetic company incurrs on your own you'd have a heart attack for the real costs. When you really think of how much you're not spending to have this opportunity it's a deal. There are trade off's for everything people. And ther is one thing I can gaurantee you if you went out on your own truly, you would see marginal profits after you calculate all the overhead...and just wait until you get your first bonafied frivalous lawsuit, your attorney will make plenty and win or lose you'll be out a small - large fortune.

Mary Kay offers women with an opportunity to sort of own your own business, I say sort of, because the big momma corporation is really taking on a lot for its consultants.

All I read on these threads is boo hoo, I spent a fortune in samples. Why did you do that? It's not required and rarely necessary. They are nice to have, but only if you can justify them, plus you do get a heafty load of samples in your starter kit. So, if you chose to order more is $1.25 - $2.50 too much of a budget buster for you? You don't have to order 1 of everything be real. My other favorite is I can't make a profit until my store is at $3600. Oh, that's a good one (hey bad consultants & directors pull your head out of your rear, it's possible to have a thriving business without a mega inventory). Ladies I thought you were in business for yourself? Now I will say it's very nice to have inventory on hand right now to fulfill every order, but even at 3600 you're going to run out of something at some point and still have a lot of somehting else. Be wise build your store to the level you need for your business. Most of your customers will be happy to wait 4-5 days to get their product if you have to order it. Most of those women just waited 7-14 business days to get those groovy boots they ordered online anyway...it's ok they will be fine.

I have been a mary kay consultant for a few years and I can honestly tell you that I do not have $3600 worth of inventory on hand and probably never will and I AM making extra money trust me I know, I just did my taxes and even my CPA was impressed. The thing is to keep your inventory moving constantly, so you might have to place orders more often, but that is actually a healthy business. I personally don't want to dedicate the space needed to store the "full store" in my house (could you imagine?). You will find your business inventory needs and that's all that really matters.
I have been working at my pace on my clientele and I have regular customers that maintain a regular order cycle with me and of course none of them order every month (don't be silly to think otherwise) it's about every three months). Many people will be one time purchasers (just like at any retail establishment) and that is to be expected.

You as a consultant have little to invest in overhead in reality. You are not leasing space and all the associated costs for a mall store, office or other building. You can buy marketing and sales materials at silly cheap prices and only order what you need vs. bulk minimums most printing houses will charge not to mention graphic design services a good designer is worth their fee.

I agree there are some bad MK consultants and directors out there the same can be said for any industry and business. However, the opportunity to make a little extra money or a lot of extra money is there unlike in any other business. Yes, ladies it does take effort. People won't just fall out of the sky banging on your door just because today you became a Mary Kay consultant. You have to get social and lose the fear that no body wants to buy Mary Kay. I was there too, turns out it's not true.

It's unfortunte there are so many bitter ladie who have obviously come into contact with some bad apples. Ladies, Mary Kay is a great experience, but you have to be honest with yourself and your director and even your clients on what you want to get out of the business...do that and you will acheive the success level you have set out for.

[quote]It seems obvious to me, someone who has been successful in the corporate world, and who is a business owner as well as a mary kay consultant currently that people who honestly beleive there is little to no profit in the marykay business are dillusional about what it takes to run any business successfully.[/quote]
Given the numbers we've picked up from the Applause magazine and sales directors sites and newsletters, it seems that hardly anyone makes any significant amount of money in Mary Kay. We've shown that over and over. And, hmmm... it seems like we do have some members who were unable to make Mary Kay work for them, but run successful businesses now. I know Tracy doesn't like to tell us her income, but I've seen enough of how she lives to know it is better than my former sales director.

I don't know what you would consider being successful in the corporate world, but I now have a job I enjoy, where I get respect from my peers, managers, and team members, and I do have a 6 figure income plus very good benefits. I think that's pretty successful. But I couldn't make Mary Kay work. True, I don't know how to run a business, but I was told I wouldn't need to.

[quote]You don't have to order 1 of everything be real.[/quote]
That's right. But when we start, we don't know what to order, and we trust our sales directors, who are supposed to know. And pretty much always, they order more than we need, including things we'll never be able to sell.

[quote]My other favorite is I can't make a profit until my store is at $3600. Oh, that's a good one (hey bad consultants & directors pull your head out of your rear, it's possible to have a thriving business without a mega inventory).[/quote]
That was the point of the article. But thanks for stating it so plainly. It would be wrong for those of us who trusted our leadership to guide us honestly to feel like we did what was normal and human. Clearly, we were just plain stupid. (Okay, I never heard the profit-level B.S, but I did believe that a big inventory was the way to go. Because that's what I was told by people who know what they were doing.)

[quote]Be wise build your store to the level you need for your business. Most of your customers will be happy to wait 4-5 days to get their product if you have to order it. Most of those women just waited 7-14 business days to get those groovy boots they ordered online anyway...it's ok they will be fine.[/quote]
True.

[quote]The profit margin in MK is the highest you will see in just about any business.[/quote]
It is if you keep your expenses low, and sell the products for full price. But if you can't make full priced sales, that does you no good.

[quote]However, the opportunity to make a little extra money or a lot of extra money is there unlike in any other business.[/quote]
Oh, please. The "opportunity" is just like any other MLM. And it has the same problems, too. Since they encourage recruiting without limit, there are always too many reps to serve the actual number of customers. So no one can really sell very much. The problem comes in when your upline talks you into thinking you can, and going to unwarrented effort and expense to do it. Otherwise, it would just be a bit of a time sucker where you bring in a little extra money, but not enough to be worth the effort.

[quote]If you were to produce and source a fraction of the materials and business services a company especially a cosmetic company incurrs on your own you'd have a heart attack for the real costs. When you really think of how much you're not spending to have this opportunity it's a deal. There are trade off's for everything people. And ther is one thing I can gaurantee you if you went out on your own truly, you would see marginal profits after you calculate all the overhead...and just wait until you get your first bonafied frivalous lawsuit, your attorney will make plenty and win or lose you'll be out a small - large fortune.[/quote]
And I would never try that, because I know it's beyond my capabilities. The lure with Mary Kay is that it doesn't seem that hard, and start up costs are so low. You are told, be people who seem to have done it themselves, that you have what it takes. What you don't realize is they normally don't know (or maybe eve care) if you have what it takes to make sales. Their bottom line is impacted by what you buy.

[quote]All I read on these threads is boo hoo, I spent a fortune in samples.[/quote]
No, we've explained the kind of expenses we had in a lot more detail than that, and it was a lot more than just samples.

[quote]Why did you do that?[/quote]
Because the experts told us it was the right thing to do. Because my recruiter did it, and it looked like it was working for her.

[quote] I just did my taxes and even my CPA was impressed.[/quote]
Oh, how much did you make in actual profit? And how many hours did you put into it? Since you are such a good business person, I'm sure you will have tracked your time and expenses neatly. I'd love to see the breakdown for someone who can make a significant amount of money on it.

Selliman, welcome to PT! If you're in the position where you're actually moving product on a regular basis, then I'm genuinely happy for you.

In Mary Kay culture, the "bad apple" defense is nothing more than an an attempt to justify supposed bad behavior while - at the same time - washing one's hands of it. The problem is that much of the behavior required to glean success in recruiting IS "bad apple!" Manipulation, husband-bashing, scripture twisting...it's all there and being taught as necessary for success by MK leaders. The problem is not so much with Mary Kay's fruits as it is with Mary Kay's ROOTS.

Here's an example. NSD Stacy James tells her recruiters to only discuss the top three levels of inventory in recruiting interviews. Is NSD Stacy James a "bad apple" for doing this? She's not exactly being told to knock it off by the powers that be, you know? And why should she? She's whoring for Corporate and doing a swell job of it.

I've said before, I'll say it again: Mary Kay is full of good women that have to do bad things in order to advance.

Update: Mr. NSD's son took down his comment about inventory on my YouTube vid. No worries, though; he's already made it quite clear - and in his own words to boot - that "[Mary Kay leaders] push big inventories because that shows your serious about the business."

Here's a thought: If I'm supposedly the CEO of my own business, why in Hades do I have to show/prove to anyone that I'm serious about it?

Mary Kay dynamics are charming, aren't they?

Selliman, great for you that you're selling enough Mary Kay to make some impressive pocket money. I know several MK directors and consultants who are also very happy running to deliveries and putting on meetings and netting less than $1,000 per month. The problem it that the money is nowhere close to the "Excutive Level" income that was pitched to us.

If you are one of those who signed up for "full-time pay with part-time work" and your family actually needs you to provide some stable income, then you're told to do more faces, build your team, never miss an event and it's then that your expenses grow with gusto. And, trust me, I'm not talking about $1.25 samples.

Good for you that you're having a great time as a dabbler. I'm loving the cash I finally get to keep from my product sales too. Just be honest that you don't truly have a Mary Kay career.

BTW, my accountant was also impressed with my six-figure Mary Kay income. And he was impressed again, negatively, when he saw my expenses and how little money I actually brought home. Bye, I'm off to my successful position in the corporate world!

Ah, Selliman.... the old "bad apple" excuse. Seems there must be quite a few bad apples in MK if 99% of the women involved lose money, don't you think? And I'd love for you to prove you claims of that "impressive" income. Here is your invitation to send us a copy of your Schedule C for the last 3 years (private information obscured, of course). And I'd like to talk to you about the hours you put in to earn that "impressive" income. It's easy to say we just didn't work hard enough, and you did. But it's a little harder when actual proof is required. Bring it on!

Selliman said, "The profit margin in MK is the highest you will see in just about any business. "

That 50% is not "profit". In accounting they tell you that it is "gross markup". Profit is what is left after all the expenses are paid.

I find it very telling that whenever a person claims to have made a ton of money in MK, and then is invited to share the PROOF, it never actually materializes. She says "I can prove it" but never does.

Hmmm.

I find it very interesting that the women who log on to offer us "bad apples," "lazy and didn't work the business" or "we've only ourselves to blame" feedback seem to be Consultants who have either not been in MK for very long or are just at a very basic level of the career path. These are not women who have gone deep into the system and experience firsthand what goes on at these levels.

In looking back over my past 12 years, had I just stayed a Consultant and not pushed to become a Director two years in, my experience would have been totally different. Also, had I not frontloaded excessively and built debt, my experience would have been totally different. I was caught up in the "opportunity" of it all. My Sr Director never cautioned me about purchasing too much, instead she lauded me for investing in my business and being a team player. Of course, I thought I was doing the right thing. Even though we had a very close friendship for the duration of my career, I cannot even talk to her anymore now that my eyes are open and I see things differently. We are both to blame in my opinion.

[quote]If you were to produce and source a fraction of the materials and business services a company especially a cosmetic company incurs on your own you'd have a heart attack for the real costs. When you really think of how much you're not spending to have this opportunity it's a deal.[/quote]
When you really think what Mary Kay is not spending, compared to a real cosmetics company, and how many business costs they are passing off onto the IBCs, it's an even better deal for them.

You are a contracted reseller for Mary Kay. You are not a real businesswoman.

This is NOT a business: you can't sell it, your kids can't inherit it, you can't bring in a partner, you can't advertise where you want to.

My housekeeper has more freedom in her business than you have in your so-called "opportunity".

"BTW, my accountant was also impressed with my six-figure Mary Kay income. And he was impressed again, negatively, when he saw my expenses and how little money I actually brought home."

This is typical. The problem in Mary Kay is that most women think that they think that they are not the norm - I must be doing something wrong, it can't be like this for everyone, everyone else seems to have a better handle on this.

I too was impressed by how much was paid out in commissions to my clients. Mary Kay consultants are not given guidelines on managing inventory or expenses. You start by having a good week and someone is telling you you ought to get a weekly manicure, hire a housekeeper, etc. Spend money on appearance and things you don't want to do so that you can devote more time to your business - that is the key to success.

When you get to the point that you have to pay taxes often times the husband is paying the taxes by increasing his withholdings to cover a consultant's income.

I have spent a lot of time over the years telling women that real business owners pay their own taxes out of a business. What is left over after that is what you can spend.