Monday, May 10, 2010

Shocking! -90% Buyback Information

Most of us know that Mary Kay Cosmetics offers a 90% buyback on inventory for consultants. This is a moving year window as long as the consultant remains a consultant. So if a consultant decides to exercise the buyback option, the amount eligible to be repurchase is the amount purchased within the year of the return.

Unfortunately many are misinformed and think it must be made by the one year mark as a consultant, so often a consultant may feel the need to make a decision before she really even knows how to be a consultant. But a consultant must also realize if she comes in with a large order and then perhaps only orders a couple of minimum orders and decides after two years to take advantage of the buyback, the original large order will be outside the year window and only the few smaller orders made will qualify for the buyback. Imho, it is smart to start with some inventory and then build the inventory as one builds their customer base.

If one looks at any of the information from the Company... if one is working MK even part time but seriously, "profit level" is approx. $3,600 w/s. Now if someone was at profit level within a year and decided to quit, she would receive 90% back of the $3,600 - (if she hadn't sold anything)

so how shocking is it when I read a post like this on a negative site...
a consultant that was convinced to "mk doesn't work" and had just received a return/reimbursement check from the Company.

Quote, "• inpinkruins7683 - Thank you guys for the reassuring things you say
I recieved my blue check today for 11,103.12 "

look at the amount!! she wasn't a director, she wasn't selling stuff, what in the world did she need that amount of product for, my only guess is she was loving the prizes and attention... guess she decided it was getting too expensive to keep "cheating" your way to looking successful. Why in the world would she have that much inventory? There may be a few directors that really take advantage of having consultants order to help production but no director would want a consultant not selling product to keep ordering like that because it would not take a genius to figure out, it will go back and a chargeback will follow.

Of course everyone on the site will be so proud that she returned the product and congratulate her but will the spelling nazi's come out to tell her "i before e except after c" or do they reserve ripping on spelling and grammar only for mker's?

My opinion... start and then build by ordering the product you are selling and your clients are you gain more clients, expand your inventory.


  1. I have a question/comment for those of us who aren't quite as successful...all my own fault, but that's beside the point.

    I wish I had found this site a year ago before I placed my first inventory order...

    What do you do when you were overzealous in the beginning (about a year ago to the day for me) and started with a large $3600 never fails that I have some products that will probably never sell, but then I get those orders for those eye colors I'm all out of...I don't want to keep ordering $200 minimum every three months to stay active and therefore receive the discount if I don't have to. Do you see the problem? I'm not sure if I'm explaining it well enough.

    I think I just need to work my business more to get product moving off the shelves. I'll be moving to a new area soon (new job), so I'm hoping to kind of start fresh there and keep my family and friend clients that are in this area but not necessarily try to build my customer base here. So obviously I feel kind of funny at the idea of a SCC when I'll be leaving in a couple months...

    any thoughts???

  2. I would say to advertise the products you do have extras of. Put them on sale if needs be. Not such a deep discount that your profit vanishes...but you know how people leap when they see "SALE!" Stores have overstock sales all the time. You do the same. :) Also, when you are doing a free product for hostesses, take that free product from your selection of overstocks.

    MK4ME, other ideas?

  3. mkmommy, I have clients all over the states, I choose to ship for free and have an inventory so my clients don't mind. I get it there just as fast as if they lived around the block, so continue your business and when you are closer to moving you can contact all of them and ask if they would be willing to have you as a long distance but wonderful mk consultant or if they would prefer to have you connect them to a local consultant. I personally would also delegate my clients to one of my one team members because it will help both of you in the long run.

    Many will be happy with keeping you and some even if they love you will prefer to have someone local but that shouldn't prevent you from building now.. I just would like to suggest, don't just disappear on them :)

    more to come on your other ??'s .

  4. I partly agree with Miranda. I'd promote the heck out of those products you've had sitting on your shelf and aren't moving. I'd start using them (if I weren't already). BUT I WOULD deeply discount them. If they've been sitting on your shelf for 12 months, they're obviously still good products, but they're taking up valuable shelf space and tying up your money, which is costing you money.

    For example, Cellu-Shape is being discontinued. I have 3 sets. I struggle to get them to move. The last thing I want is to have them once they are gone from the Look Book. So they are deeply on sale right now. Retail = $55 (WS = $22.50). I'm offering them for $25. I simply want them gone. I honestly don't care if I make money on them, but I do care if I recover my cost.

    The other thing you could do is to offer the items as a party special. Going back to my Cellu-Shape example, I might offer buy a Miracle Set and get the Cellu-Shape 1/2 price at a party.

    I used to carry a basket with me of "classic" products (some old limited edition, discontinued, or items I simply wasn't moving, etc) to all my parties. Anyone who spent over $50 got to go shopping in my basket that had everything marked 25-40% off. I cleared out that basket in no time. Worked like a charm. I'm going to do that with the lipsticks and eye colors and extra limited edition I have from Christmas 2009.

  5. One other thought . . . when I moved across country 10 years ago, I had a HUGE moving sale and my clients LOVED it. Yes, you can pack it all up and move it and tell your clients you will mail to them, but if you don't have to move it, all the better. Less boxes to pack and unpack.

    I sent all my clients a letter informing them of my move and thanking them for their loyalty. I also invited them to my moving sale open house where I offered great discounts and said it was also to thank them for being my clients. I really made it special for them and I moved tons of products that day.

    Like you, in my first couple years, I had made some ordering mistakes and this allowed me to rebalance my inventory with what I really needed after I moved.

  6. This comment has been removed by the author.

  7. One other idea:

    I sometimes offer retail products as gifts with purchase. For example, for a $40 purchase, I'll give a handcream (currently $8 retail, $4 WS) rather than the current PCP gift (cost $3.50-$4 each). If I've got old limited edition or discontinued products, I will use them as gifts with purchase. Obviously, I don't give an a $30 (retail) set for free on a $40 purchase, but I may split up a set or give a more valuable set as a gift for a larger purchase.

    My general rule of thumb is to give a gift that's approximately 10% of purchase. So if someone spends $40 with me, I'll give them a hand cream ($4 wholesale) or an eye shadow ($3.25 WS). For a $60+ purchase, I'll give a lipstick or lipgloss ($6.50 WS). Etc.

    My feeling is that if I've got product on my shelf that's discontinued, I don't want to spend more money on gifts with purchase while I'm stuck with product I may or may not sell. I typically do have some of the current gifts with purchase the company is promoting, but I'll often have clients order more than once in a quarter and spend more than $40 each time, so rather than give them the same gift twice, I mix it up this way.


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 (here) (there)
If this is your first visit please leave a comment here. I would love to hear from you!
If you want to email me:
But you are probably better emailing mk4me: