Pizza Franchise vs. MK franchise
Comparisons have been made by some between Mary Kay and other franchise opportunities.
While there are many similarities, and in many ways, Mary Kay is a much better option, there are some things that should be considered.
The primary comparison between the two is the very obvious difference in start-up cost.
One pizza franchise near where I live costs about $200,000 to get started.
Mary Kay costs about $117. (tax and shipping)
The pizza franchise offer includes training, rent, equipment, initial inventory and a good deal of other things needed to get started.
Mary Kay offers “free training” and technically you can get started selling your product as soon as (if not before) you receive that starter kit…
The problem that I see and I believe is the primary complaint amongst detractors is the hidden cost of Mary Kay. While I can not speak authoritatively about the pizza franchise opportunity, it seems safe to assume that with $200K you will have everything you need to open up shop and start earning a profit.
It would not be difficult for an intelligent, well put together individual to walk into a bank with a decent business model, decent credit and a decent understanding of interest rates and walk away with a loan for the $200,000 needed.
Assuming this individual did their homework first, had a plan in mind and opened in a neighborhood that liked pizza, in a couple of years he/she would probably be in a position of “making a profit”.
The complex decisions of whether to pay off the loan quickly at the expense of immediate cash flow and goals like owning the location, growing the size of the location, etc. aside, it seems likely that at $200,000 dollars, there is little “hidden” costs and as soon as those pizzas start walking out the door, you will start making money.
On the other hand, while $117 is all you “need” with Mary Kay, most people have discovered that there are more expenses that hit you before you even get the starter kit in the mail! Some of those expenses are; initial inventory, office supplies, new clothes, a personal website, samples, brochures, added gasoline for your vehicle, added minutes to your cell phone plan, etc.
For some people, these things were considered before signing and are really a small addition to the initial investment. For others, these expenses amount to a doubling, tripling or worse of their anticipated investment. And, because this is not coming from a bank, but from their pockets it may totally change the equation for them.
Additionally, in both equations, there is a very significant problem that some people simply don’t have the foresight to predict. Just because you have a viable business, offering a viable product in a viable area, you are NOT guaranteed to attract a “real” customer!!
This is where MKHonesty points out that advertising is a very important part of the expense calculation. If you hope to do well in ANY business venture, you absolutely must find away to let the people who may be interested in your product/service know that you are offering it.
Not knowing all of the specifics of what the pizza franchise opportunity offers with their $200,000 package, it would be difficult to reasonably compare the two side-by-side. Additionally, because of the myriad different methods available for running a Mary Kay business, it is difficult to say for certain how YOUR individual experience will go.
Suffice to say, some people accurately point out the frustration experienced when $100 turns into $600, $1800, or even more. It should be noted however, that most directors/recruiters offer options based on what a new consultant has available to them. If you intend to operate a fully functional, fulltime business, and have the means to purchase $3,600 (retail) inventory it is hard to think of a reason not to. If you want to make $2,000/month, this size purchase should not last you more than a month. One surefire way of motivating yourself to keep working and pushing until you meet your goals is to invest up front and not stop until you have sold it all and need more!
This naturally does not work for everyone, but is not a “bad” idea just because it is not the best thing for everyone.
In conclusion, Mary Kay is NOT the same thing as a fast food franchise opportunity. There are similarities, and there are considerable differences as well! Is it the right opportunity for you? That is something YOU will have to answer!
Saturday, January 5, 2008
For Further Reading...This Week On Pink Truth - Click Here
Pros and Cons of Mary Kay - Read or Contribute or Both!
First Post - Why I Started This Blog
The Article I Wrote For ScamTypes.com (here) (there)
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