Friday, March 13, 2009

Question on sales/orders

(Amended abit at 12:00 on Friday)
One of our readers asked this question and I thought it might be a good one to run with for today. (I don't have as much time as I would like to really do a great job on this, so how about I get started and everyone can pitch in and I can just check back and keep adding my 2 cents? Help audience.

mkmommy said...
I have a question. Do you think there is any validity to the points made on PT about orders and their reflection on profits? I mean there are people who order large amounts, but don't sell it. I have done it myself unfortunately. Doesn't that "inflate" things to make them appear better than what they are?

For those that put in large orders in any given month, there will be those that don't order anyting in a month. If a director brings in a new ibc with $3000 - unless the ibc is a real hotshot, it is going to be quite awhile before she orders again, (at least a large) order ...(any reader here know I do not promote large startup orders - for the record) - So the large orders are just going to balance out the small or zero orders. Month after month, it just all comes out in the end. My unit production comes from seasoned consultants reordering because they are doing their business, selling their products, and then need to replace it so they will have it when their next clients needs it. (Very little of our production comes from the new consultants because I my sincere belief, start and build just as you start and build your customer base. (it works to everyone's benefit down this way)- this way of operating creates an easy flowing stream of production, it is consistant - it means there is consistant prodction coming in from the being of the month, the middle of the month, right thru the end of the month. Best part of operating like this is that I never have to do the "dialing for dollars" I read about on pt - ugg, that must be horrible to deal with the every month. I am proud to say that I can call any unit member any day of the month and she will answer my call (even if she has call id) - good feeling, they know that "THAT" call doesn't happen.

Our Company showed a 5% increase in sales this past year - an increase up to 2.5 billion. Now in this economy, not only did we not loose money, we actually showed an increase. That is pretty impressive. The long term goal is to double that figure to 5 billion by the 50th Anniversary - 5 years from now. The Company is looking at growth. Now for general comment, common sense tells you the same number of consultants that we have now will most likely be able to maintain or perhaps slightly increase what they are doing (at least long term) so the bottom line is the Company will need more consultants. Despite the fact that some want to think MK is going dooowwwnnnn..... (for the times) we are doing quite well. The new advertising is selling the opportunity to find more consultants and I mean (good consultants) not bodies.

The negative nellies can say that Mary Kay does no count sales to their customers, it is to their consultants. I really wish that when people use that to justify their complaints they would realize, MK is no different than any other cosmetic company (or any company for that matter)that manufactures and then distributes to retail estblishements. Seriously, when Clinique, Mac, Estee, Bobby Brown, etc... report the figures for the products that were shipped to Macy's, Bon Ton, etc.... - they don't then go into the stores and call the stores liars because the store has the inventory they purchased. The only difference is in our set up the "stores" are they consultants. (disclaimer: there are consultants that are sitting on too much inventory because they just kept buying and buying and buying to hold on to this or that but let't face it sooner or later they are going to room out of storage space).

It is sad that so many ibc will go nuts and buy product to win a car, and buy more production to become a director, and buy more product to keep her unit, etc.... as we say here, "Looking Successful Doesn't Mean You Are" and sooner or later you are going to max out your available credit trying to look successful. A house built of cards, comes down very easily. Build a strong selling unit, build a strong customer base, and then build your team, while you are servicing your existing clients, finding new clients, and continuing to build your team. And if you can't juggle all this then directorship is not for you. All the balls must be kept in the air, you can not be successful, long term as a director without this balance.

That is one of my biggest peeves as I read those statements of the posters on pt, going on and on about I was a succesful director, I won x# of cars, went on 2 trips, drove 2 Saturns and one Cadillac, worked hard ...but I was $25,000 in debt. Excuse me, if you were $25,000 in debt, you appeared successful. And when it caught up with them and they realized they had run out of credit and what they were "buying" was insane. Then hey, why not just admit it. Stuff happens. - This MK just didn't work for me and I made some bad business decisions I love the recognition and the praise and made foolish mistakes so I would get the attention. Oh, I wanted that pink toaster and I know Suzy Q won't be able to star this quarter and she wants it too, soooo, I will just charge it. Buying your recognition and prizes will bring one down every time. It is hard to operate successfully in a people business if your attitude and self confidence is down. Being too hungry is also not appealing. One can say that people don't know that but when you're stressed it comes acrss in your mannerisms. Time to get out and move on to something else. Just find something that works for you... so why can't one just admit i?, Ok, we have a little egg on our face... but pat yourself on the pack for trying, figure out where you went wrong so you learn from your mistackes and move on to something else. But no, as if all of a sudden they get a case of "the ethics" and quit, saying, oh, this bad, bad, Company, I just won't represent it anymore. ummmm.... sorry..... you let yourself down, the Company didn't let you down. I have used people and I manipulated people for 15 years, I have lied, I pulled inventory, I used others charged cards, I bought my prizes, I bought my car, I sponsored my cat and dog, I stole other ibc's customers and potential team members. But it none of it is my fault, bad Company, bad bad Company, none of this is my fault, I was taught this way, everyone else does it this way, ummm... that excuse may be valid for a few years... but it doesn't take one 10 years to figure out that you shouldn't cheat- sorry....

So there is a start, come folks there is a ton to add but I am dozing off. So catch you tomorrow!


  1. I honestly believe that if someone is ordering consistenly even if its 200 per month you can tell if they are selling or not. If someone comes in at a 3600 and doesnt order for two-three months chances are they are not doing anything! This is why some of those Saturn Drivers who have been in for 5 years or more and have unit sizes of 75 or more are making money. I can see a director putting in an extra 600.00to hit a target or get a bonus especially if it is skin care items and she knows her inventory.
    Its really hard to measure if MK is selling all of that or not since it goes to the consultants I guess they would have to measure their returns and take a percentage of that to know, also we dont know what is on all the shelves of the consultants or directors. This is a hard question to answer. I DO think that MK knows they sell to the consultant but the company doesnt want consultants to just buy the product they want them to sell it!
    MK is so huge they will always recruit people and get directors (they have to replace the unethical ones they let go..LOL)
    Chances are they can tell by how much the unit is ordering on a consistent basis (and I dont mean large 5000 orders put in by tons of people) I think recruiting went up due to the commercials and their promotions and YES the economy!

  2. I agree that the sales counts for other companies includes the inventories on their shelves so this should be kind of a moot point. Besides, we use the products, so aren't we also customers?

    And truly, it drives me nuts when people complain about earning stuff but going into debt for it. Sounds like a personal problem to me... No one forced them to do those things, and they need to own up!


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