Based on something being discussed on Pink Truth Judi, a regular here, asked about whether or not you can make a co-pay if your unit does not make production.
Another regular here, mk4me, constructed a fantastic response. Have a peek!
It is true that if you don't make car production (on any of the cars) you could possible end up making a coop payment. It is in all the paperwork and it is in the Advance book (and on the Advance Brochure on line on Intouch). Before you ever take the car (or cash compenstion) there is alot of paperwork you receive from the Company that you must read and then sign and initial in many places. It is no secret. We have a great Company but they do not "Give" you the car, you "earn" the use of the car.
As norm, the conclusions on PT that are drawn are flawed because there simply isn't enough information listed and before any amount would be determined there still needs to be another month of production in the equation. If the director was qualifying for the Caddy. (Because TC is basing this on a six month window) It takes up to 6 months to qualify for the Cadillac, between two quarters you must acheive $96,000 wholesale, which does average out to $16,000/month. Maintenance is based on quarters though and you are looking at $48,000 wholesale in the quarter to avoid a coop payment. (Carryovers from previous quarter though can be used if your production falls short)
#1 when I get the reports that are shown, my amount is not reflected and I am the biggest seller in my unit. So more than likely, a big number is missing from this report.
A director can earn the Saturn for $48,000 in six months. So quarterly you are only looking at $24,000 and monthly that breaks down to appox. $8000.
So as many of us have tried to get the message out there to counter what a few Cadillac directors on PT state.... You can be a Cadillac director making way less money if you are missing production than a Saturn director who is making production.
Driving a Pink Cadillac, doesn't mean you are making alot of money, it can also mean you are. Just your 13% director check on $16,000 is $2080, then the volume bonus would be another $1600, then team production, team building bonus, etc..that adds up quite nicely.
If your unit isn't regularly producing Cadillac production and you actually qualify for it, you better think if you are willing to work to the level to bring your production to that level all the time. If you are not willing to committ and do the extra work, take the Saturn and drive free or get a $500 comp payment every month.
#2 if you have more in a quarter than is required, it rolls forward so you can use it in future quarters if you ever fall short.
#3 we receive 600 points if a personal team member does a qualifying order. (If you even had one qualified team member a month - that would be an added $3600 towards the production) (these points are not reflected in the reports that are posted on PT)
#4 (Disclaimer -I am about 90% sure of this not 100% - if you have a unit member that has done production but after six months moves to the term list, I believe her figures are removed from this chart as well, ( of course they are still consultants and all they need to do is place an order and their figures would appear again)
So once again, when I have read about a director on PT saying she can't make money in Mary Kay and she was even a Cadillac Director and went on the top trips, etc... it doesn't necessarily mean she was making alot of money. BUT, it doesn't mean you can't make lots of money.
If you get in over your head, you can turn in the Cadillac. Seriously, if something happened in your life and you and your unit's production dropped so low that you were having to make a large coop payment on the Cadillac, it is (JMHO) probably a very good idea to turn it in a not worry about making a $900 coop payment, the Saturn is nothing to be ashamed of and you can requalify for the Cadillac at any time.
Why someone would want to earn the Cadillac and then want to pay for it for the next 1 1/2 is beyond me and boggles my mind. If one is doing this my conclusion would be they are ashamed to let it go, or they are too proud to let it go, or they have enough other income in their family, they can pay to drive the Car and they are okay with that. Why someone that was hurting their family financially and paying for the car amazes me. I would want to put my family, and financial situation above my pride or shame.
There is no shame in admitting you aren't able to do something for whatever reason (stuff happens to all of us) - pride is the dangerous thing.
The Coop payment is evaluated quarterly so just because you may have to make a coop payment one quarter does not mean you will be making the coop payment every quarter.
FOR ALL: YOU CAN LOG ONTO INTOUCH AND IF YOU HAVE QUESTIONS ABOUT THE CARS, CAREER PATH, ETC...
SIMPLY LOG ONTO YOUR MKINTOUCH SITE AND LOOK UP THE ADVANCE BROCHURE. There are no secrets, everything is spelled out. One must just take the initiate to read.
Hope this helps.
ps- and may I add I have heard MK is absolutely wonderful about working with any car driver that may have extreme circumstance happening in their lives. One simply needs to call the Company.
Also, if you are curious about taking the cash option (instead of the car);
$45,00 over $900
$0 - $26,999 $0
$23,000 and over $500
$4500 or more $375
(All figures copied from the Advance Brochure that I had handy, so I would still check intouch to double check if they have updated anything since the printing of the brochure I have)
and a little FYI, out of 7 MK Vehicles, I have taken 3 vehicles and 4 times cash comp. I personally think if you take the cash you can buy whatever you want and build equity. If you use the car, you do have free use of it for two years but then after that nothing really to show for it.
Lately I had been taking the cash comp because of where I live, a 4 wheel drive SUV is almost a necessity in the winter.
And if you want to know how much you will have to pay for a co-pay if you do not make production;
Over $45,000... $0
$23,000 and over....$0
$20,000 to $22,999...$50
$17,000 t0 $19,999.. $100
$14,000 to $16,999 ..$150
$11,000 to 13,999...$250
$8,000 to $10,999...$350
$0 - $7,999 ....$500
$4500 or more .... $0
$3,500 to $4,499 ...$93.75
$2,500 to $3,499 ...$187.50
$1,500 to $2,499 ...$281.25
$0 - $1,499 ...$375.00
Now if you look at these figures I would like to point out that this is why you can make more money if you are a making production as a Saturn director than a Cadillac driver not making production.
If a unit is producing $8,000 wholesale a month you would be driving the Saturn for free, if you had the same production as a Cadillac level director you would be making a coop payment.
I don't mean to offend anyone, honestly, but it seems a no brain that you are going to be better off financially at the Saturn level than the Cadillac level if your production isn't Cadillac level. I am sure I too would be embarrassed if I had to step back from the Cadillac if I had it and then something happened and I couldn't maintain it. But I would find the financial stability of my family far more important than my pride. Plus I do think it must do a number on your self esteem if you keep saying your are a Cadillac unit and you truly know you aren't making production. It would be a downward spiral. I have seen directors step back and I have never thought badly of them, as I matter of fact, I think it is admirable to make the right decision. Life happens to us all.
Please note that I used the same brochure, anyone that wants to double check me, just log on to you intouch site to confirm, just didn't want to take the time to keep going back and forth.
Hope all this info is helpful.
All of this information is exclusively thanks to mk4me! Thank you so much for taking the time to get us all informed. Yes, it is helpful.