I saw a reference to how Dave Ramsey counseled a Mary Kay rep about inventory debt on a WAHM board I visit.
You can see the original source here. Please be sure to listen to the live recording because the written part is not complete by any means.
The consulant in question has about $4000 in inventory. She is selling, but she is using 50% of her sales to restock her inventory. She and her husband have a lot of debt (not just from Mary Kay). Her initial inventory purchase was $3600 and she also bought about $1000 in marketing materials, the carrying case, etc.
Her husband wants her to sell through her stock and use that money to pay off her MK debt.
There are a few points I want to make about what Dave Ramsey says:
- Dave says several times what a "wonderful" company Mary Kay is.
- Dave says he believes Mary Kay is an excellent opportunity.
- Dave advises to keep "a few hundred dollars worth" of her "best sellers" and then for other stuff order often enough "to keep the UPS man busy." Since it only takes a few days to get products, having a fully-stocked store isn't a problem.
- Dave says that "some leaders" have the "mistaken process" of loading up their consultants with a garage full of stuff so they can get their pink cadillac, and that is the problem - not with Mary Kay the company in general.
So, what do you think?
Mary Kay is one of the few Direct Sales companies that encourages inventory.
On the other hand, it is one of the few companies that hands customers product as soon as they purchase it. Most other companies have a wait of up to 2-3 weeks for orders.
I know we will have people on both sides of this issue, and that's fine. Just keep it civil, folks. :D
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