Written by Parsons Green

When a consultant signs up with Mary Kay, there is no requirement to buy inventory. However, sales directors earn their commission from their consultant’s wholesale orders. The truth is that the initial inventory order is where units are finished, cars are “won,” and goals are finished.

For most Mary Kay consultants, the biggest (and only order) will be their first inventory purchase. Ongoing ordering from consultants in a unit pales in comparison. So how do you explain to your new consultant that they need inventory?

Donica Thee shared her thoughts in a Facebook group. The start up fees are low. You aren’t having to pay fees to your state to register your business. Consultants make 48-50% profits. She does not mention that this will be ONLY IF you sell your product at full suggested retail. She also says nothing about what your potential expenses can be as a consultant.

Pat Arnold loves having inventory. People want their products NOW. They could shop elsewhere or even with another consultant if you don’t have what they need. Your customers will keep coming back to you! They’ll rave about you to others.

 

Jill Hall states that she became a realtor in 2002 and it cost her $2500 in fees. These fees earned her nothing. If she had purchased $2500 in Mary Kay, she could have sold that for $5000 for $2500 profit. Her real estate costs did not have the 90% inventory buy back option that Mary Kay offers.

Debra Kay Brewer has been a consultant and a director. Being a director is hard. You should only order inventory if you are serious about your business. She advised her consultants not to spend money they needed for groceries on this business.

Carol Mallon and Donna Nowicki love having inventory. Do you want a lemon stand or a Neiman Marcus business?

Tammie Harvey-Jones purchased a lot of inventory and hasn’t been able to sell it. She’s been giving it away as gifts. The only person who made money off her inventory order was her upline. She’s had two directors in her time with Mary Kay and her third director is going to retire. She doesn’t know who she’ll be under next. Carole Rehfuss then blames Tammie for her failure at Mary Kay. You have to book, sell, recruit, and it shouldn’t be hard because this product sells itself. Carole, if this was so easy, why aren’t you a national sales director?

Pam Maccarrone brags that she has over 1,000 clients, so of course she offers a full store. She will get the products to you faster than anything you can order on Amazon.

Maureen Wahler Benson states that ordering inventory helps your upline but it helps you. You can give your customers products on the spot. You have to be smart on what you stock though.

Joscelyne Brookins says if you don’t have inventory, it’s like going to a grocery store that doesn’t have food.

Carla Bankston told her husband that not having inventory leads to lost business. You don’t go to a restaurant to sample a burger. You want the burger right then!

And finally, Jena Keesler admonishes Danica for not telling her consultant that Mary Kay is NOT an MLM. There are NO UPLINES. Jena, what are directors and National Sales Directors? They are paid commissions on their downline!

If a new consultant is being pushed to place an inventory order, they should ask their recruiter or potential director one question. How much money will you be paid from Mary Kay from me placing this order?

8 COMMENTS

  1. Wow! So glad I requested the 90% repurchase form last week. My miserable director decided to asked me for some products to send to her country as “a gift” right after when she got the email from the company. Part of the newest national area from what the Emerald division used to be. Every Monday night requesting $5.00 in cash for the unit meetings, the “mini seminars” every first Saturday of the month ($20.00 per consultant at a fancy hotel in south Miami) and last week an “spectacular retreat” for Friday and Saturday paying $200.00 at the same fancy hotel, sending a Zelle directly to the husband of the new NSD. Thanks God I am out from that pathetic scenario, glad to no to enrich people that doesn’t care for anyone else than themselves anymore.

  2. What utter hogwash. We no longer live in the microwave age. We live in the e-commerce age, where everyone is totally used to waiting a day or two for exactly what they want to show up on their doorstep. With free shipping.

    If you’re a new consultant or prospective consultant and have found this site, let me break it down for you.

    Your director is going to recommend $3,600 or $4,800 wholesale as a “full store” inventory. This number has no basis in reality and has not changed in 20 years. She’s going to tell you that “you can’t sell from an empty wagon” and she’s going to pressure you to allow her to select what comes in your order because she knows what sells. If you do, she will load you up with limited edition products and/or things that are about to be discontinued so you have to order again next month.

    When you order $3,600, your director will earn $828 (23%) as her director commission. If you are her personal recruit, she will earn an additional $468 as the recruiter. She will earn a $100 bonus for having a Great Start Qualified recruit, and if she has 3, she will get an additional $100 per recruit. That’s 1,496 reasons for her to manipulate you into ordering more than you need.

    Most compelling for the director. That order almost completes her minimum production for the month. That’s one month that she can breathe and not have to order excessively to hit her quotas.

    Make no mistake. Your director needs you to have inventory. YOU, if you decide to do this, need to have a full understanding of what your target market will be ordering. And that research takes time, patience, and holding parties. You have all the time in the world to make a good decision. Your director does not. She needs you to feel urgency so you’ll make the decision she wants you to make.

    • Your director might not tell you this, but you have 4 months to get freebies with your order. So. Take this advice and slow down. Actually just quit haha.

  3. My brain shorted out trying to read Debra’s post, but I think she has the most sense of anyone. I wish she’d get out all together though. Free money if you have customers coming back I suppose.

    It’s sad that Tammie thinks a director is called a coordinator. That coordinator never saw value in her since she didn’t leave her family to have parties every night to sell her inventory which means Tammie never got to know what her title even is.

    I call absolute bs on Pam and her 1000 clients.

    I hope Carla’s husband doesn’t hate her in 5 years when she has them in debt up to their eyeballs.

    Jenna doesn’t know she has a coordinator making money off of her. Bless.

  4. The other questions that should be asked and answered:

    – “What percentage of all the Mary Kay inventory ordered globally is never actually sold to an outside customer?”
    – “What percentage of all the MK product ordered is ultimately sold at full MSRP?”

    Mary Kay Corp does not track any of this, but the first could easily be 80% or more. That puts the second number well below 20%…and given all the BOGO offers, give-aways, donations and returns, is probably less than 5%.

    If a consultant orders $1000 wholesale, and sells only 20% of it, with effective margin on only 5%, her business has just lost $750. But her director will tell her to brag that she “made” $250!!!

    This poor approach to business ledger management is great for her upline…but not so good for her. Sadly, conflating top line revenue with business profit is foolish but is still encouraged in MLMs like Mary Kay.

  5. What’s the point of inventory with the new CDS system where product is shipped directly from the company? If that is the new standard, NO ONE needs inventory on hand, except maybe a few things here and there.

    The thinking of these consultomers and directors is old school and is inconsistent with today’s e-commerce. Yes, your upline (and MK is an MLM, lurkers) makes money on what you order. You only have to look at the commission structure and see “wholesale orders” to realize it.

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