
Power Up and Grow!
Written by Parsons Green
Mary Kay offers trinkets to its sales force to encourage inventory purchases. The latest is called Power Up and Grow.
The first prize is a set of four Mary Kay themed earrings! We are talking junky earrings appropriate for a ten year old.
The company has created a special checklist so consultants can keep track of this huge goal. It includes a special disclaimer reminding consultant: Wholesale Section 1 product orders must be tied to legitimate consumer demand.
Wait, is the company coming out and saying that you should only order if you have customers buying products?
Of course not. Because saying that directly would discourage orders. MK Inc. still WANTS the orders, they just don’t want to be accused of encouraging frontloading and ordering to meet a goal. (Yes, they still want to frontload, they just want plausible deniability.) So if they SAY that it ordering should be tied to consumer demand, then they can use that to shield themselves if anyone ever accuses them of enticing the sales force to order products they don’t need.
So this “tied to consumer demand” shouldn’t be a problem! Consultants only order product to fulfill customer orders, right?
In previous years, Mary Kay gave monthly prizes for a $700 wholesale order If you earned every monthly prize, you received an additional prize. When Brenda Hill didn’t receive a monthly prize for July, she took to Facebook with questions. She can’t find anything on InTouch, and her director didn’t know!!!
Several consultants were aghast to learn her director didn’t know!
Laura Sherman reminds everyone that you shouldn’t be thinking of spending $600, you should be focused on selling $1200 retail. The company doesn’t track retail sales.
Lona Holdridge thinks the company is doing it this way so you can focus on also becoming a star consultant. You become a star consultant with $1800 inventory orders each quarter.
Barbara Thomas is NOT A FAN of the baby earrings. She’s approaching 30 years selling Mary Kay. She’s seen the company changing a lot of things over the last nine years. She even remembers a seminar where both a shuttle driver and a hotel clerk mentioned how seminar attendance was way down – and this was from 2013 (or maybe she mistyped 2023). Rhonda Greene Howard agrees. The prize is not worth the effort she is putting in. She wants grown ass woman jewelry! She wonders if the company is doing well financially.
Rose Plesz lectures everyone that she used to work in the corporate world and nothing compares to the recognition she receives from Mary Kay. She feels the company is trying to help women by giving them more opportunity to sell more product to increase the company income. Ooops, I mean the consultant’s income.
Jaclyn Renae received broken earrings.
Lynn Dahlgren Embrey wants everyone to act like business owners. They need to be checking InTouch daily! Carole Kelsey reminds everyone never to buy a prize.
Would this prize motivate you to sell Mary Kay? How many of these prizes will be offloaded to unit members as a special prize. I’m looking at you and your unit Somer Fortenberry!
This is getting even more pathetic. Time to bail ladies, you are being squeezed out. There is no need to carry inventory. None. Can’t wait to see what’s next to come to keep the “sales force” in chaos. Can you imagine all this inventory on hand and your customer decides to skip you and order directly from the company to avoid the “chit chat” and upselling? Best way to get rid of this inventory? Sent it back, learn to accept the magic mk math when you finally get your check, and get out.
Or sell it on ebay and amazon like everybody else does.
PG— you are amazing!!!
Ok so I’m new to PT. Have yall discussed the decline of MK to this extreme for a long time, or can you honestly say right now is alarmingly bad?
Since MK is a private company, it is difficult to get hard numbers on year-over-year revenue. But folks here have shared “proxy” information that suggests MK is withering on the vine in the US. It is unclear if their international business is offsetting the significant US decline.
For just one proxy metric, dig into the count of active MK consultants by year for the US and globally for each of the past 20 years and that will give you an idea of the downward corporate sales trend, in the US at least.
Tracy has shared some other proxy metrics such as the count of directors and Cadillac drivers. All signs are that MK is in steady decline in the US.
Four seminars into three.
No more career car program for consultants.
The signs are there for sure, I was just blinded to it for 9 years so this seems bad but maybe it was always bad. Like, is this “tale as old as time just another day of sucking” or “woah crap this is baddd”. I don’t feel like it’s been this critical before. Nationals losing Escalades is a big deal because they used to be grandfathered in. Joy Breen had 3-5 directors when I quit a year ago and it was no issue. I know a former director from her area. When I started in 2015 they had just cut pearl seminar. Will it be another 10 years or is this decline happening faster and steadier. I guess that’s the direction of my question.
Didn’t seminars go from 5 to 4 to 3?
I know we gleefully compared the big group photos and counted the shrinking numbers until they stopped taking those photos.
Things seem to be changing VERY quickly. Ryan Rogers doesn’t seem to be swayed by his grandmother’s legacy and her devotion to the sales force. He is focused on making his company profitable….however he can.
Ryan Rogers is in a pickle. Most MLM kingpins jump over to a fast growing young MLM when market share starts to decline. He has the family smell on him so such a move won’t be so easy or even possible.
I am so curious if he has met with true market analysts to see if MK could survive as a true retail products company. Their prices would have to come WAY down, but eliminating the outrageous overhead cost of managing and incentifying that giant sales force has to be compelling. It is SO much cheaper to sell from a web site…even when including advertising cost.
I can see him milking the downline as long as he can while he figures out how he plans to make the transition to a competitive retail beauty products company. Their legal team has been sure their consultant agreement allows them to dismiss consultants and directors for any reason. They have to be careful about the NSDs coming after them legally. All of this would be factored into the transition plan.
My guess is they’ve looked at the affiliate model and can’t make that work. Spinning off a new brand (Quixtar anyone?) is one way to create short term buzz and sales spike. Partnering with a big box retailer is another option. My guess is he’s looking at all of these options.
The bottom line is this company is not currently structured to compete in an open marketplace. Most of the product they produce and sell is never used by outside customers. They’ll need to hire experienced management and marketing folks who know how to position products and pricing to enter into and grow significant share in a very competitive, mature market space. The customers are simply not there today…most of the product ordered never moves beyond the sales teams’ shelves. They need to create real demand where it does not exist today. No small task.
Alternatively, he can just milk this cash cow until its dying breath, then move on to other things after shuttering the company.
What will he do? Should we start a pool?
I’ve thought for a long time that when (not if) they ditch the MLM model, QVC would be the perfect way for them to transition into the retail market. I mean, they sell shrimp that works out to over $30 a pound and it sells out every time it’s on for some reason.
They have affiliates all over the world with show hosts who are trained on the products and whose job it is to make them look like THE BEST THING EVER!!! They have models who sit and apply the products and smile and look fantastic. Professional photography and camera work, advertising, a web site that actually works. They have a very generous return and exchange policy already in place.
People who are curious about the products but haven’t bought because of the neverending harassment will finally get their chance. Those who are nostalgic about it can try it again.
The stick that goes with the carrots, though, is that QVC allows customer reviews whether they be good, bad, or just plain idiotic. The world would find out how good or bad the products really are. Plus QVC already sells a bazillion beauty brands and if MK couldn’t hold its own, it’d be out on its hiney.
Shrinking Seminar is another good proxy metric. Attendance started to decline in the late 2010s and really took a hit in 2020, when they had to go virtual because people realized that staying home and not limping around Dallas in high heels was actually a good thing. The numbers never really recovered afterward.
I showed up here in 2022, and here are some things I’ve seen happen just since then:
A big sign that any company is in financial trouble is when they start cheaping out on or eliminating things. Since it was upgraded, the poor functionality of the InTouch site is a big red flag. Along with that has come a drop in the level of customer service compared to what long-time consultomers say it used to be like. Either nostalgia poisoning or a sign that recruitment and training have taken a drop in standards.
The director suit became just a jacket, and a jacket with bad styling and a poor fit even though it’s made by St John Knits and they have a flawless reputation otherwise.
Elimination of samples, free Look Books, and Applause changing to online only, with lame explanations (“the factory closed and it was the only one that could make them” [coughbullshitcough] for the samples and some fake environmental concern for the others).
Elimination of entire product lines despite them selling well.
Their new wannabe flagship product, the Dynamic Wrinkle Eliminator, being a total and ineffective flopasaurus after serious $$$ being spent on development, advertisement, and hype (BOTOX IN A TUBE, YO!!!).
Back to Seminar and cheaping out, combining and eliminating some divisions, moving to a smaller venue, and not even providing lunches for attendees.
And, of course, the prizes become more and more cheap and stupid (the sealing wax kit was certianly A Choice).
I was still in MK through some of this so I was blind to it/denial or completely missed it. Like, I didn’t realize the wrinkle eliminator was a flop. I didn’t sell many because I had a foot out the door, but I just figured it was only me. My first year in they had just done away with pearl.
I agree 110%, Popinki! one doesn’t have to get into the actual numbers. All you have to do is look at the surface of things —
– No career car for consultants
– Changes to the NSD qualifications (like being Inner Circle and whatnot)
– Cheapening of prizes, including Star Consultant ones. (I actually still have some of mine because they are fantastic quality, like the triple-strand pearl Jackie-O necklace (which I still wear), a couple of handbags, and some silk pillow covers (gave them to my baby sister since she loved them).) Many of the Star Consultant prizes are available for pennies on Amazon. In fact, you could buy all three sapphire star prizes for about $150 a couple of years ago. ALL THREE.
– Five seminars are now three seminars, and the annual hoo-rah is at a smaller venue without previous perks.
Let’s not forget the Canadian income disclosures from the last couple of years that show declining incomes for everyone. As a clinical nurse specialist (an advanced practice nurse), I earn significantly more in my current position than most NSDs. I have a retirement plan, paid time off, paid sick leave, and paid training. They don’t, unless they’ve set up their own outside retirement accounts.
The outward appearance is that of a sinking ship.
I got downvoted, so I guess someone liked the sealing wax kit 😀
And I bet you get a lot more respect being a nurse (at least from me – it takes a LOT being a nurse and I know several that helped care for my ailing grandparents, so they have all of my respect).
I love this. No matter how hard the upline tries to control the public messaging, the lower ranks still receive the internal message as:
“Order and recruit to get prizes. No sales necessary!”
And that’s exactly how they want it! But say it, don’t write it. They don’t want to see this messaging shared so plainly online, for fear of the naysayers…and fear of confirming what is said over here at Pink Truth!
Too late…
Rose isnt wrong, I’ve bought better earrings from 5 Below.
Yeah, that comment about “tied to legitimate consumer demand” is a big eye-opener! Definitely trying to cover their butts.
The year I became a director….2003, the gift for directors was a necklace…it broke the first time I wore it….smh.
Don’t even get me started on how horrible and clunky MKIntouch has always been…Sheesh.
I’ll say it again, Mary Kay is outdated and not staying current. The whole idea that professionals don’t wear pants is absurd. Their packaging keeps looking cheaper and cheaper. I saw a picture on FB of their fall line up and the eye palettes look like they came from Claire’s. The limited edition lipstick cases are cheap plastic. The prizes are insulting. They are discontinuing the fragrance-free satin hands hand soap and sanitizer because the pandemic is over. Whose brilliant idea was that? Do they think people are going to stop washing and sanitizing their hands? I think the company is in trouble.
MK needs to merge with Avon!!!
It always interests me to see MKers talk about “prizes” and “recognition” as though regular jobs don’t offer anything.
My employer has an “uplift” points program where every employee is given 100 points to award to another employee of their choosing each month for going “above and beyond”. Additionally, managers can choose to give even more points for recognition etc. All 12,000+ employees can see when someone gets an award so there’s your recognition for you. Points are also awarded for milestone anniversaries. Points can be saved up and used towards merchandise (thousands of useful items including Apple products, etc), gift cards, travel, and so on. Currently I have over $2k worth of points and I’m just going to let them ride until I want/need something.
Meanwhile, MK has “baby earrings” and cheap Amazon/AliExpress crap as “prizes” for spending hundreds/thousands of dollars for goods that they have a ghost of a chance to sell.
I’ll keep my 501-jean wearing real job thank you very much!!
Looking at the prizes NSD Somer Fortenberry doles out, her Faith National Area is comprised of 12-year olds.
Frankly, I can’t blame her. No reason to spend a lot of money on women who will likely be gone from MK in a year or two.
“Enriching women’s lives.”
This thread makes me smile BIG! I would LOVE to see MK sink completely. It has robbed me and many other of years of our lives. What got me into MK was the prizes/recognition… I’m a high “I” personality… or was back in my younger days. Now, my personality has shifted… I’m no longer motivated by “stuff”, I’m motivated by doing a good job, knowing that I provide a valuable service, and I’m compensated well. I enjoy a flexible schedule, which allows me to enjoy life and people on my terms.