Tuesday, April 10, 2012
MONEY: Business Review: MARY KAY
Product: Cosmetics
Age: 49 (founded 1963)
Pay: 50% of sales
Commission: 4-13% based on recruits inventory orders
Cost to get started: $100
Extra costs: Product Inventory packages running from $600 - $3,000+, cost of samples
What you get: Business supplies, Product to resell (if you buy inventory)
Highest cost if you go all out: about $4,300
New product comes out: 4-7 times per year
Pros: keep 50% of sales, get paid the night of your party, consumable product (customers will reorder same products over and over as used up), high quality product, customer can exchange product for any reason, tax deductions, as much training as you want/need, no yearly renewal fee (stay active by purchasing $200 worth of product every 3 months)
Cons: must create your own hostess plan and the cost of free product given comes from your profit, highly saturated market, must carry inventory to stay competitve, product refunds come from your own profit, cannot use and resell product - product must be sold new, "demo" product cost comes from your own profit, no compensation for training downline
Do you know more about this company? See any mistakes? Additional info welcomed!
Website: http://www.marykay.com/default.aspx?tab=home
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