With or Without Inventory, Filling Mary Kay Orders is Tricky
Mary and Jane are two women who caught the Mary Kay fever and decided to become consultants. (While Mary and Jane are fictictious, their experiences are based on those of hundreds of other women.)
Mary doesn’t want to start her Mary Kay “business” with that “empty wagon” Mary Kay Ash mentioned, so she orders $2400 (wholesale) of inventory. Now she’s set and ready to start selling.
She holds her first “class” and is happy to have a few orders. But as she proceeds to fill those orders, Mary is suddenly dismayed. Two of her customers ordered several of the same lipsticks (or eye shadow, eyeliner, blush, moisturizer…) and Mary only has enough of those shades to fill part of the order. Now what?
Mary has a few options:
1. Order additional inventory from the company: But this means that Mary will have to pay the flat shipping amount just to receive a few additional items. That shipping charge makes the cost of those few items much higher.
2. Trade with another consultant: Although not talked about much, this is a very common practice among consultants. If you’re out of a moisturizer that you need, you swap products of equal value with another consultant.
3. Call your director and buy it from her: This is strongly discouraged by the company, but it’s done all the time anyway. If you’ve ever seen the endless shelves of inventory that a director has, you know why they’re more than happy to sell product to consultants. Many discount it slightly less than what you’d pay if you ordered from the company.
4. Have your customer wait for weeks until you’ve sold enough to have at least a $200 wholesale order to justify the shipping cost: Not the best option.
Meanwhile, Jane decided that she wasn’t going to buy any inventory when she became a consultant. She held classes and took orders, promising delivery within two weeks.
Jane holds a few classes but doesn’t sell $400 retail. She needs to order at least $400 retail ($200 wholesale) to get her 50% discount, so she orders a few extra things to get the order total up. Her order arrives in a week and her customers aren’t bothered by waiting for their product.
Over the next few months, Jane doesn’t hold any classes and has a few individual appointments. But the orders from those appointments aren’t very large. Still, Jane orders the product from the company and pays the flat shipping charge. She realizes that she can’t keep doing small orders every few weeks or that shipping charge will eat into her profit.
At the beginning of the next Mary Kay quarter, Jane’s “earned” 50% discount expires, which means she has to order at least $400 retail from the company initially during that quarter to get the 50% discount on her product. One of Jane’s customers calls her and needs a lipstick. But Jane hasn’t been selling much because she’s been busy at her “real” job and had some family issues to tend to. She doesn’t have the lipstick, since she doesn’t carry inventory, but she doesn’t need to, or want to, order $400 worth of product just to get one lipstick. And if she just orders the lipstick, she not only won’t get the discount but she’ll pay the flat shipping charge on that one item.
These dilemas are what women who’ve been in Mary Kay have faced.
The more you build your customer base, the more likely you are to run dry on certain items. So you order more inventory and keep more of each item. And still, with thousands and thousands of dollars on your shelves, you run out of something. Even if you decide to stock only what your previous customers have purchased and use regularly, it still happens.
It’s a tricky balancing act that’s nearly impossible to perfect.
lisa brown on 
Cynthia on 
Zombie Sugar on 
BabyBlues on 
Lipstick on 
LJ…thanks for writing this piece. it accurately reflects what happens to IBC’s every day, not just the new ones, but also the seasoned.
It doesn’t matter if you start with a full store, partial store or no inventory at all…everyone ends up in the same place. They have inventory they don’t need and don’t have inventory that they can sell.
This is a perfect example of why MK doesn’t work. No matter how hard you work, how careful you are at controlling inventory you always, need something you don’t have and MK Corporate banks on it!
Don’t fall for all the “ you can make an executive income, work when you want to, be your own boss, make as little or as much as you want” spiels they tell you. MK has made a business out of getting people to try their own MK business. They will sell you inventory, training tapes, business aids, advertising (PCP), inventory cases, samples. But only MK makes money, while you break your back trying to make it work and listen to your SD who tells you you are negative, not working hard enough, you don’t want the dream, you don’t have the deserve level! The onky thing broken is MK’s business model, which incidentally is not “taught at Harvard”.
If they tell you, “you’ll never know unless you try, what have you got to lose?” Think about it hard. You have a lot to lose: your hard earned money, time with your family and your good credit!
If you are not happy where you work, find a job that makes you happy. If you don’t have the skills for the job you want, go back to school and get them! Don’t try MK or any other MLM.
If it sounds too awesome to be true and they tell you the product flies off the shelves, you’ll be making more and working less….run for the nearest door! Just say no! I wish I had said “No”. Don’t be full of regrets.
The onky thing broken is MK’s business model, which incidentally is not “taught at Harvard”.
Sorry, that should have read only!
Way to go LJ and Lipstick!
It’s definitely time someone pointed out this terrible flaw with MK. The “you can’t sell from an empty wagon” adage probably worked better back in the Stone Age when the entire MK “beauty book” could fit on an index card and the wagon was literally a wagon. When customers said, “I need a lipstick for Lincoln’s funeral”, the rep could say, “Sure! Will that be the smart looking red or the smart looking pink?”
When they (SD/recruiters) pull the “you can’t sell from an empty wagon” adage, remember the “DON’T PUT YOUR CART BEFORE YOUR HORSE!” How do you know what your ‘customers’ want, when you DON’T have customers? You won’t! Like LJ said, even if you had 3 of everything, someone will order 4! It is a no win situation! As far as trading with other consultants, which is done all the time, you then have to add in the additional cost of gas to track them down for the trade and the time it takes!
That second scenerio has happened to me quite often as a consultant. I only order once a year now to get my own personal product and product for my mother in law and sister in laws. If I do get orders, I fill them through another IBC who sells for well below retail to me and her customers…which makes a little profit for me an I don’t have to worry about shipping costs (those are crazy, especially if you are only ordering that one lipstick.) One fact comes from another post that I read, that said it’s hard to sell MK retail when others are selling it for so much cheaper. With all the MK sales on E-Bay, it’s hard to compete. Just thought I’d share…have a nice day ladies!
i have looked at product on e-bay before, and by the time you pay shipping and handling, you’re not coming out any cheaper most times. i had one customer who flat out told me she was going to buy from e-bay “from now on” and twice got product that was old and once got product that was travel size ( i don’t know if it was listed as that or not), but now she’s back ordering from me. i did bid (and won) on an off-white, ’70’s mary kay train case and was glad to have it. i’ve had several offers for it – it was in mint condition. i appreciate lj letting me post my thoughts – thank you.
Yes, I also will never buy MK products on E-Bay. You don’t know how old the product is and if you can really trust whose selling it. I do know some people who do purchase MK on E-Bay though, thinking they are getting a better deal.
I’m really surprised at the negative comments about Mary Kay. What people need to understand is that being a consultant is a job like anything else. The customers do not come to you and the money doesn’t come to you. This only comes through hard work. The entire premise of Mary Kay and what it is founded on is allowing women to accomplish whatever they want to accomplish with not fear of a glass ceiling. This is possible as my Senior Account Director make six figures every month. This did not happen over night, but she is a success story and it can happen. When I just saw her last paycheck to be $35,000, well you can’t argue with that being that only Mary Kay wins. I would be thrilled to make that much a month and I would consider myself a winner.
The reason why women fail is themselves. I’ve been in sales my entire career and by far this is the most afforable way a woman can establish a business. You need to spend money to make money.
For those of your struggling (I am in the same boat sometimes) you need to surround yourself by successful women in the company and learn from them. Also, be creative as far as extra inventory is concerned, offer an extra holiday invetory for hostess gifts or stocking stuffers for your own family. This is a no brainer and it is a write off.
So, keep the faith and don’t be a MK hater.
One last comment, having product on hand is important as it establishes excellence in quality service. I can’t tell you the number of times my customers are surprised that I have the products for them. If I don’t have all of their order, I certainly have something for them to take home. We’ve all been there, you go to a hostess party and you have to wait a week or more for the product, what a disappointment.
I agree that you need a full stocked store to be successful.
Lovin’ Mary Kay,
I am so glad that you enjoy your work. I am also glad that you “work hard” at it. Please be careful in the way you present your comments so as not to be insulting to the rest of us who also “worked hard” and now have nothing but debt to show for it.
I wore MK products every day, dressed the part, talked to everyone I met, and spent more money on my “business” than I care to recall. There is only so much one IBC can do in an area filled to the brim with IBCs and precious few “customers” who might buy one small item from you out of pity or obligation. There is only so much one can argue with the statement, “This lipstick costs $15? Are you kidding!! I can get the same thing from Avon for $8.” And no, aruguments about quality are not going to suffice.
While “working hard” is essential in every endeavor, it is not the only key. There is also something to be said for the local market, competition, and the price of the products you are trying to move. If “working hard” was truly the secret, then very few businesses would ever go under and companies with multi-million dollar advertising budgets would always enjoy soaring revenues.
Unfortunately, life does not work that way and no venture is failsafe. (Donald Trump even filed for bankruptcy at one point.)
Again, I’m thrilled you enjoy your work and have found an open market. Please understand that those of us who are on this site are also “hard working” smart women who have succeeded in other areas of our careers. We did not find success with a business that promised us our inventory would “fly off the shelves” if we would simply covenant to “work hard”. Being in the presence of a NSD might be encouraging, but it is not going to bring customers flocking to your door, nor will it make ladies return your phone calls, nor will it make the price of MK products more affordable.
Our “negative” comments are purely subjective based upon negative personal experience. Our purpose for being here is to encourage one another with the joint realization that we are not failures nor did we refuse to “work hard” enough for success.
I, for one, am glad for my MK experience. It taught me to take better care of my skin and that MLM is not the way to make a living. If you are one of the lucky ones who managed to get in on the “opportunity” early on, you, too, might actually see a $35,000 pay check.
Either way, I still wish you better luck and a greater return on your “hard work” than I had.
Well said Former Pink Attack Dog…I couldn’t have said that any better. I am still an active consultant, only because I’m a personal use consultant. I truly believe that the days of the MK “Parties” are over. Women today are so busy and it’s so easy to buy cosmetics anywhere else. It is wrong to say that these ladies didn’t work hard. I’m sure everyone worked very hard…but it is hard to push products that someone can buy cheaper right at the mall and not have to sit through a facial or “party” to get. I still adore MK products but my once a year sale will be all MK ever sees out of me.
Former Pink Attack Dog – Beautifully spoken and so honest!
Lovin’ Mary Kay – Oh my, where to start? (Turning on fan to blow away the pink haze) I don’t know why you would be suprised regarding the negative comments, this is an ANTI-MLM (a/k/a Mary Kay) site!
I personally don’t know any IBC’s who started their “business” who were told they’d have to work 20 hours a week in addition to their other repsonsiblities and have inventory, etc., BEFORE they joined! I don’t think most IBC’s actually want Mary Kay as a part time job. It’s not presented as a J-O-B (at least in my area), it is an “opportunity”, “you can work it in addition to your duties, while you are doing your other duties, etc. ” This is not true. If you don’t have 10 or MORE hours per week (and that is minimium) to DEVOTE strictly to Mary Kay, you get nowhere! Oh yeah, there may be a few customers who order regularly and once in a while, someone’s neighbor or a friend of a friend, but it is a J-O-B that you have to work, and work hard because the model is way out-dated!
When MK first originated, most ladies stayed at home and the “home party model” was a great opportunity to socialize! (Picture Mrs. Cleaver)
Noone has time or wants to deal with , home parties anymore. Working moms don’t, between dealing with work, school, homework, after school activities, housework, everyday chores of laundry, dinner, dishes, cleaning, etc.!
Plus, there are the time factors to consider – meetings to attend, special events, cc, fall retreat, etc. Then, if by some far alignment of the stars, you get enough parties scheduled that you actually hold 1, there is telephone time attempting to schedule 5 parties so 2 will hold, time preparing for the party, going to, setting up, doing, packing up all your party supplies, unpacking the vehicle, filling orders, driving back for delivery, plus doing the paperwork involved, filing weekly time sheets and accomplishment sheets, and we haven’t even begun to mentioned the costs involved!
SOME of the cost are: shipping on the product, books, sales tickets, books, samples, PCP costs, mailing costs, giveaway items, hostess gifts, GAS, wear & tear on your vehicle, MK name badge, luggage or totes, class suplies, etc.
“When I just saw her last paycheck … $35,000″ Yeah, but that was BEFORE expenses! And, as a Director, she would have even more costs! Take a look at her tax returns!
Stargazer, it’s very easy to buy excellent Mary Kay products on eBay.
1. Buy only from those with excellent feedback who have bee on eBay for a year or longer.
2. Buy only from those who have pictures of the actual product and complete descriptions.
3. When in doubt, ask questions. If you want to know the age of the product, ask for the date code on the product.
Most of the MK products sold on eBay are sold by current or former consultants/directors. Most of the product is current. It’s not counterfeit or damaged or otherwise crappy, as MK and directors would scare you into believing.
Are their bad sellers of MK on eBay? You bet. But if you’re a smart consumer, you can avoid them.
Oh my, so many things to say but you ladies have said them all gracefully.
Lovin’ Mary Kay: I can honestly say I didn’t work hard enough with my “business”. I was to busy taking care of my family, and my fiance and my real job and my boss and a dog, a horse and trying to go to college. My week was very full but I knew what I was getting myself into when I started with Mary Kay.
I am great at sales. I can honestly say that I sell more products in my photography studio in one week than you do in two. I can say that with up most confidence. See I only started working at this studio not even 2 months ago and I’m already the head photographer there as well as managing it. I make an hourly wage but i also get a bonus (commission) off of every sale I make because the company appreciates us even when we don’t sell $5,000 in one week.
I came across a lady yesterday who was in Mary Kay for 18 years. She now works for Avon Corporate office. Don’t get her wrong, she loved Mary Kay (actually met Mary Kay herself more than once) but she told me something yesterday that I have to agree with. A company can never remain the same after the person that started it is no longer there to run it. And that is what happened with Mary Kay Cos.
See we’re not negative, we just tell others the truth that we have seen with our own eyes. It’s wonderful that you haven’t seen it yet but at the same time it is sad that you haven’t. I hope that you will see some of the things that go on behind the scenes. I hope you have a blessed “business” and that you live a happy life. My wishes are with you.
E_K
Oh BTW, please don’t ever say we didn’t try hard enough to make it work. Because all of these ladies did and had many hopes and dreams that I’m sure were shattered in the end.
Thanks for the tips, LJ!
English_Kashu — EXCELLENT post!
Stargazer — You’re welcome.
Thanks LJ, I didn’t want to sound bitchy even though I was soooo tired (from work)..
I used to trade products with other consultants AND my director. However, this burned up a lot of gasoline for all of us, meeting each other with products to trade. Probably more gasoline cost than product profit.
english – just wondering if you’re still at the photography job. if not, what are you currently doing, if you don’t mind saying?