Friday, November 21, 2008

Pink Truth: Mary Kay can't help you get out of debt - heres a better idea... do nothing

Does Pink Truth seriously still wonder why people say they are "negative" when they say stuff like this?

Don't get me wrong, it is clear that you don't stand a chance of "making" $1 for every $1 invested. Yes, when you make the math as simple as possible, the equation is that you buy $2 worth of merchandise for $1.

As I mentioned yesterday, this is one business option out of many. It may work out great for you, it may not.

The 'basics' that are laid out by this NSD (That Pink Truth liberally copy/pasted... copyright infringement anyone?) are correct.

Overly simplistic. Perhaps.

I noticed though, that no one managed to point out that she repeatedly says "SELL" not "ORDER".

My thought process about that? Glad you asked. I know (from talking to my wife's director) that there are some people that, no matter how many times she tells them not to 'just order to get a prize', talk excitedly about how they are going to "win" this prize or that prize. (Implied is that they are planning on ordering even though they don't need to.)

Conversation goes something like this.

Consultant: OMG, Ms. Director, I am so excited about this prize. I am going to place an order for x,xxx. That will be enough for me to win this prize!!!
Director: That is great Ms. Consultant, but do you need those products? Are you sure that ordering them right now is a good business decision?
Consultant: OF COURSE it is a good idea. I will win this prize.
Director: I understand that you are excited about the prize, but if you haven't sold the other items that you already have in your inventory, this is going to do more damage than good.
Consultant: OH DON'T WORRY about that... I will sell it all. I BEEEElieve!!!! I just have to have faith.
Director: That's not really how that wor...
Consultant: OH I KNEW you wouldn't understand. You don't really care about me anyway. I thought you were supposed to be there to help me. **click**

(This was a 'creative' rendering based on the recollection of a few conversations that I have had with several people in Mary Kay and should not be viewed as an actual conversation)

I am not saying that all (or for that matter, any) PTers are/were like this. What I am saying is that any time Mary Kay has a document that uses the word "order" in it, they get all gang-buster with their "look, look, see.... I told you... all they care about is ordering". It would not surprise me to see them get up in arms when they go through the drive through and the speaker-box says "may I take your order?". Sorry, I am cracking myself up with the image of r-berry kung-fu kicking a McD's speaker-box and screaming, "I know you are one of them"...

... ahhh .... whew ....

... and were back folks,

Seriously now, what do you think of this get out of debt plan?

Seriously hogwash? OR legitimately possible?


  1. For getting out of debt I personally would recommend work that has a steady, not variable income, and one where you are completely sure of not losing money. I have a couple side jobs like this. When I proof books it's always $14/hour, and when I model for artists it's always at least $40 per 2 hour session. I'd leave the sales party plans for people who are much more financially secure than I am.

  2. My logic - if someone is only ordering for the prize, eventually they are going to end up with more product and more debt than they need. In time, it will mean that consultant is going to quit, do a product return, or ebay it or find another way to liquidate. This is not good for Mary Kay in the long run. To me it seems like, common sense that the Company does not want people to just order. If they have a consultant selling and ordering and selling, they will have a consultant that will always order as needed. (For me, I would rather train a consultant and let her start with a small inventory and then build her inventory as she builds her customer base, this is better for everyone, her, myself, the Company than to get her to come in with a big inventory and get discouraged and quit. I don't want one big windfall and then nothing.) I am starting to think I must be way too logical but running the business this way has worked for me and my unit members. Obviously I am on to something.

    As for not making 50% profit. If you pay $1.00 for something and sell it for $2.00, the ability is there to earn 50%. In accounting it is called Gross Profit. If after you make the 50% and then need to net it out with expenses, what you have left is NET profit.

    The statement we buy our prodcuts at a 50% discount is absolutely correct. But there is no guarentee you can pocket 50%. The Gross profit becomes your working capital. Carefully watching your expenses is vital in any business.

    MK is not for everyone, but I do think that one really never knows if it is something that one will be successful at or not until after they give it a shot. Even after many years, I still get surprised when someone I perhaps don't think will be able to do something big with their biz, just knocks my socks off and just zooms, and then I have seen others, that I think, wow, this woman is going to be great and then just never does anything with it. For many, MK can be a way to earn extra money. For others it can be a way to replace an income (in time, not immediately) and for others, it is just going to be a hobby, and as with most hobbies, it will cost money.

    Different stokes for different folks.

  3. I can see how people can get carried away. My observation was the more competitive the personality, the more they are willing to really "go for it".

    I wasn't in for a long time, but I remember my director holding up an incentive and thinking, "*#%%&, I just put an order in!" (Meaning I put in an order to fill an order and then ordered a bit more of same to have some legitimate, (read: not limited edition Christmas box sets) on my selves.)

    I think if people go crazy ordering stuff, but not selling stuff, they should pursue a career as a buyer. Seriously.

    I also think that if anybody is going to pursue an at home business, they should have a general business course under their belt. Or at a minimum, an accountant who can explain stuff to them so that they don't commit financial suicide as some have been known to do.

  4. ..or have a very anal director that teaches money management and doesn't believe in big inventory's and her biggest goal is to have a unit of sucessful, happy consultants making money (whether their goal is $25/week to whatever). A director that believes you build your inventory as you build your customer base, and that it can be done and it can be done honestly and ethically - operating this way helps everyone be happy. :)


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