The secret to getting Mary Kay consultants (especially new ones) to order lots of inventory is overcoming their objections. New consultants typically are skeptical about spending thousands of dollars on inventory that they’re not even sure they can sell. But no need to test the waters and hold a few classes before you order! ORDER NOW! You’ll sell tons. Trust me.
And so the con game goes. You want to be successful, don’t you? Would a store open without anything on its shelves? Do you think women really want to wait for their cosmetics? Order now. Order often. Have lots on hand and you’ll be successful.
Still not convinced that you need to order thousands of dollars of inventory from the start? Your Mary Kay director will bring out the big guns: It’s an investment. Debt bad. Investment good. Investment is not debt. Credit card or not, it’s not debt. It’s an investment. Get it? An investment in your family’s future.
More is more. More is not less. Not less money to feed your children. Not less money to put clothes on their backs. More products means more opportunity to profit.
And the below story is one that has been circulated for years in Mary Kay. There’s only one huge problem with it: The story assumes that you’ll be able to sell all of the inventory you’ve ordered. Anyone who’s ever been in Mary Kay and is honest about it will tell you that it is extremely difficult to sell the product.
Oh yeah, there is an occasional woman who is beating down your door to order something. Once in a while you’ll find a hostess who has 8 women show up for your class and you get 5 new bookings. But those instances are so few and far between. The truth is that very little of the Mary Kay products are actually retailed. The vast majority (I estimate more than 80%) actually sits in basements and garages.
So while this “investment” con sounds great when you’re in the pink fog, those of us out of Mary Kay recognize the story for what it is: pure fiction.
We have some money to invest and I was thinking about the story one NSD told. While she and her husband were lolling around the pool he said, “Honey, I meant to tell you; I invested $10,000 in (whatever) and we will make 7% interest in 7 years.”
She said, “Oh, really?” He said, “What’s wrong?” She said, “Nothing.” He said, “I know something is wrong; what is it?” She said, “I know you think of yourself as a great businessman.” He said, “so tell me what’s wrong.”
She said, “Well, I was thinking that if you had invested the $10,000 in Mary Kay products, I would have received 13% (her Unit Commission) on $10,000 immediately – that would be $1,300, plus, some gorgeous prize, probably a TOP TRIP with Mary Kay and 50% – $10,000, when I sold it!
And it wouldn’t take me 7 years to sell it! That would be $11,300 we would make on our $10,000. A consultant with 5 recruits would make the same commission as the NSD!
Do you look at your MK inventory as an investment, or something you hope you can sell? What are you making on your Money Market Account? 4%, 5%? How about your savings account, 2 1/2%, and CD’s, 5%? If you’re doing GREAT in the Stock Market you may make 15%, (and no one is doing great in Stock Market right now), or you may lose it all! We have looked into different plans such as an annuity which makes 7% if we invested $15,000 and leave it there for 10 years. Bonds could make 4% or 5%, if interest rates are high, but they’re low so that won’t work.
I have money in a IRA. That’s good. However, I am past the age where I can add to it and if I take it out I am taxed on the full amount THIS YEAR. Everyone is telling you to plan for your retirement. I do believe that you need to start some kind of retirement RIGHT NOW!
Oh, you aren’t making enough money to save any? Work your MK (along with your regular job) and put your profit into a retirement account. You say you don’t have time to do anymore than you are doing now? Sure you do. You better, if you want any money when you’re 65 or older.
The best interest you can get on your money RIGHT NOW is to invest in your Mary Kay Inventory (at 55% UNTIL JUNE 28TH) and learn to be the best Mary Kay Consultant in the business. Listen to motivational tapes in your car daily. Other consultants are doing it. Find out how.
Do you get tax benefits at your other job? What if you can’t sell it? Oh, well, the only reason you wouldn’t be able to sell it is if you never told anyone that you were a Consultant. What if you have to send it back to Mary Kay. So what! You had to have sold some of it at 50%. You can’t lose any money.
What about the interest on the loan? What about it? When you are working a profitable business, making a lot of money you need tax benefits. It is important to get your TAXABLE INCOME down to as close to zero as possible. Say you are making $40,000 at your job, then want enough tax shelters to get it down to as close to zero as you can. You probably don’t have ANY tax shelters working for someone else. With Mary Kay you do!
Maybe you do want to quit your job but you say, “The Company pays for my insurance”, not true, the Company doesn’t pay for your insurance, you do! They just don’t pay you what you are worth because they are using the money they should pay you to pay your insurance. DO YOU KNOW YOU CAN PAY FOR YOUR OWN HEALTH INSURANCE? THINK ABOUT IT!