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 using..as you gain more clients, expand your inventory.

The Buyback Opportunity

This is going to be a reference piece. I know the information can be found on Intouch and many other places but since it comes up quite a bit and I have noticed, that sometime one is more inclined to read a blog than training material, I thought it would make for a good info post.

One of the benefits of trying a Mary Kay Career and we do talk about it at the interview is that if Mary Kay doesn't work for you, you can return your product to the Company and receive 90% of wholesale (the cost you purchased the product for) from the Company. With this option, it makes taking a chance on Mary Kay virtually a risk free decision, where as if you find you can't sell the product, you can actually recoup most of your cost of the product.

Now, this part of the information is pretty straightforward, the misunderstanding seems to come in regarding the time period that this option is available. The buyback option is available to any consultant at anytime - it is a rolling one year window. This does not mean that you have one year from joining the Company to exercise this option. This means that you at anytime during your MK career exercise this option but the amount eligible for the buyback will be one year back from the date you return the product. I feel this is a very generous option.

Personally, I don't understand why a director or recruiter would want a consultant to think it is only available for one year because at the one year mark, a consultant that maybe joined and didn't get out of the starting gate very fast might feel that instead of taking more time to get going, they better utilize the buyback since they will loose it after that year.

From my years in MK, I have often watched a consultant not move very fast at first and am glad that at the end of a year, they didn't quit because things can change (life) and with more time, many have become quite productive consultants. If they had made that decision at the one year mark, they wouldn't have gone on to to become a great consultant. From my own experience, I did nothing for the first year and half in the Company except order my own personal items. Then somethings happened in my life and I need to make a change and I started working my business. I am very glad that nobody made me make a decision at the one year mark because I probably would have given up MK.

IMHO, it does not do any good for anyone to feel they must make a decision at the one year mark. I also admit, it seems there are even directors that don't understand the "rolling" one year window. At anytime in your Mary Kay career if you wonder how much you are eligible to return, one phone call to the repurchase department and you will have the figure.

I also feel it is counterproductive if a consultant is brought in with a large inventory and she hasn't gotten to the point she is really moving product, it does come to a do or die choice at that one year mark. That is why it is smart not to frontload a consultant. If she is building her inventory with her customer base her inventory can stay level thru her career.

Having that moving window should help all because if a consultant doesn't ever get overwhelmed with inventory, she won't use the buyback as a reaction to a crisis situation. As long as you are managing your inventory, your business can go with the ups and downs of your life. The minute a consultant gets so much inventory she can't see the light at the end of the tunnel, that is when the product goes back and often a consultant that may have had a great part/fulltime business is lost.

I have seen good consultant become "paralyzed" when there is too much product and it seems like if you MUST sell product, it is the time you are least likely too. I think the "hunger" for the sale shows more than the love of the product. When you switch into the "I need to sell" mentality instead of the show the product and "let the customer buy the product", everything just seems to go downhill.

The buyback should work as a caution to all directors/recruiters that you should encourage your unit/team members to be selling not just ordering. A consultant just ordering is going to quit and then you are going to have to deal with whatever happens aka the chargebacks.

So to me it makes sense, order product when you are selling product, don't order product to earn prizes. Provide great customer service by having what your clients order on hand but you don't need to have a year's worth of product on your shelf.

Make sound business decisions when ordering. Keep a balanced inventory, and don't get caught up in how "successful" you look, just be successful. ...And if your goal is to earn $50/week for the kiddos lunch money and that is what you are doing, you ARE successful.

Being successful doesn't mean you have to earn a car or become a director.
Success is acheiving your goal. YOUR goal, not someone else's goal for you.