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On many occasions, I've sat and talked about the Mary Kay business with consultants and their husbands. From these discussions, the most common concerns of the husband are for the success and well-being of his wife. The following is a synopsis of the most frequently asked questions from the husbands so they can know how to support and encourage their wife in her new business.
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She will be teaching skin care product application, as well as selling Mary Kay Cosmetics products. She will have her own business, and will not be employed by me or Mary Kay, Inc. Her classes will be taught to individuals (facials), or in groups of 3-6 people (classes).
Her classes will be held in either her home, or the home of a hostess who has invited her. Your wife will have no territories and may work anywhere in the United States she chooses.
The Company does not impose any quotas or requirements. She will set her own hours. We suggest that the two of you spend a few minutes on Sunday evening and fill out a Weekly Plan sheet for the upcoming week that will work best for you and family activities. A part-time consultant usually allows 9-25 hours per week for her job, but this can vary depending on family plans and desired income. It is vital that you both agree on her schedule and that she works as planned. The more hours worked, the greater her income potential.
Average class times are about 2 hours, with an average of 3-4 people present. Considering a 50 week year with one class per week and assuming industry averages (orders, customer retention, reorders, hostess credits), you can expect:
85 customers at the end of the first year
Profit from classes = $3,500
Profit from reorders = $6,375
2-3 hours per week = $9,875 per year
ABSOLUTELY NOT! Mary Kay is based on a dual marketing plan where each consultant buys directly from the company and sells directly to the customer. There are no levels of wholesalers. When a consultant recruits another person into the company, she receives a commission on that person's orders to the company, similar to insurance or real estate commissions. These checks are issued directly from the company to the consultant and do not come from the Director or recruiter.
Just as in any vocation or profession, there is a training program that must be completed. There is local training in basic skin care and make-up techniques. She will learn all facets of her business including how to schedule classes, manage her new income, and time management, etc. Training is approximately 2-3 hours per week at the local success meeting. You are always invited and encouraged to attend all Mary Kay events.
Your wife is setting up her own business. Just as in any business, she needs tools to work with. The Starter Kit is that tool and is worth between $300—$400. It contains everything she needs to get started. She will need to order more samples after her Power Start at a minimal cost.
Each consultant orders independently, direct from the company, and the products are shipped via UPS to her door. The usual receiving time is 7 to 10 days from the day the order was placed.
First, inventory is the actual product your wife will sell. While inventory is not required to get her business started, it is suggested that she work toward stocking some inventory as quickly as possible. The profit comes from sales of the product. She buys the product for $1 and sells it for $2. Every dollar invested in inventory is doubled when sold. It is extremely difficult to sell from an empty store. Women tend to want their product now!
Enclosed in her New Consultant Packet is an Inventory Decision Packet which includes a CD describing the many ways and benefits of starting your business. She will want to consider all the options presented in this packet. To be on a consistent profit-making basis requires between $3,000 and $3,600 wholesale inventory. This is enough product for approximately 18 Beauty Essentials Collections. If your wife starts with less than $1,800 wholesale, she needs to reinvest all profits until she builds to a profit level. The key to consistent earnings is to restock the inventory consistently.
You know your financial circumstances better than I do. I honestly believe that between $1,800 to $3,600 wholesale is the best. She is an automatic prize winner of the Gold Ladder of Success pin, which is a visible sign of success. She will wear her Ladder of Success proudly. Based on the size of her initial order, she can earn free products and incentives for her business. For an order of $1,800, she will receive $300 suggested retail product, recognition from the Star Ladder Program and monthly product bonus. For a $1,200 order, she will receive $200 of suggested retail product plus the monthly product bonus. For a $600 order, she will receive $100 of suggested retail product and the monthly product bonus. She can be on a profit-making basis within two to six weeks with a $2400 order. Other inventories are also available to fit any budget, but it’s important that she attain profit-making status as quickly as possible.
Few people have that much money readily available. Even if you do have it, I recommend you treat this as a business from the beginning by applying for a bank loan, a credit card, or other available line of credit, to keep your business accounts separated from your personal accounts. Most businesses begin on borrowed capital. And remember, should you and your wife decide that Mary Kay is not for her, the company will guarantee a 90% return of your investment for all unused Mary Kay products purchased within the past 12 months!
YES! Absolutely! Mary Kay is the number one best-selling brand of Skin Care and Color cosmetics in the U.S. for over a dozen years. Our corporate goal is to be the finest teaching-oriented skin care company in the world. And, we're succeeding! Studies show that Mary Kay users are Number One in brand loyalty, that our skin care class format and the opportunity to "try before you buy" is very appealing to women. Our products are consumable -- when you use it up, you need more, which creates a future reorder business! Also, referrals are a great part of our business. A satisfied customer will sell her friends on trying the Mary Kay products.
Not necessarily. A business has many tax-reducing strategies available to them that normal taxpayers (W-2 employees) do not. There can be significant tax savings. Generally, many day–to–day activities and expenses can be legitimate business expenses provided you keep the proper documentation. Depending on your individual situation, you may be able to get significant tax refunds during the first few years in business. In any event, your tax burden should not be increased until you are making significant income from the business.
I hope I have answered most of your questions about our company. Mary Kay is becoming increasingly popular due to the quality of our products, our competitive prices, and our service commitment. Our unit is helping to lead the growth in our company. I am committed to her future success and will match my time 100 percent with her effort. If you ever have any questions or need clarification, please feel free to contact my husband, Jim, or me. Thank you in advance for YOUR support!
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