Let’s talk about Mary Kay, the woman – yes, I am going there.

Wonder where we’ve been? Click here.

Mary Kay’s biography has more holes in it than Swiss cheese. First of all, have you ever thought, $4k “entire life savings” and using the words retirement in the same sentence seemed odd?  A life savings of $4,000 in 1963 is equal to $31,000 in 2017. My friends, how long could  you live on $31,000? Certainly not 40 years. She was 46 when she “retired”, right? Let me put it this way, in the Midwest, we call that UNEMPLOYED. She was simply seeking employment. She didn’t give up retirement for anyone – she needed something – it was called MONEY.

She claimed to be top sales in other Direct Sales companies – where was all that money? Oh right, those Direct Sales owners weren’t as generous as Mary Kay, Inc. Riiiiiiiiight. Not true, they all even out in the end after expenses to very, very little pay. Even so, where did all her money go that she claimed to earn? She was left her with $4k total? If you ever wondered how many people can make real money in at a Direct sales business, here’s your proof, Mary Kay herself.

She didn’t make any REAL money until she started climbing on the backs of her newest “independent beauty consultants”.  All the while she claimed P&L meant People and Love. Sure, you know why? Because she HIRED OTHER PEOPLE TO DO HER DIRTY WORK. THEY hammered down the gauntlet on profit and loss.

Lowly Sales Directors BEGGED for a pay increase in the early 2000s. They were told in no uncertain terms by their NSDs (who were the hired henchmen at that time, because even corporate couldn’t look women in the eyes while they lived in their mansions and drove their expensive cars and tell Directors, the HARDEST WORKING PEOPLE IN THEIR COMPANY that they would not receive a raise – not even cost of living and had not for years – because? they didn’t deserve it! “You can get a raise, move to the next level”. Uhmmm, gosh I bet those directors had never thought of that. eye roll). Yet, the owners and top executives raked in the money hand over fist – I guess they were “deserving”?

A few years ago there was a large discussion on the internet about how many times Mary Kay the woman had been married. While it may not be interesting in today’s standards, it certainly was for the mid 1900s. This is a woman who got around. I believe she had 4 if not 5 husbands before she died. At some point, we have to look at the behavior and say “the common denominator is you, Mary Kay”.

There was always a running joke around Mary Kay seminars and conferences “marry for money the first time, and for love the second”. They weren’t kidding. It costs a LOT OF MONEY to make it to NSD (I mean ten of thousands of dollars, if not $100k to get yourself into NSD status — so those of you shooting for NSD – STOP AND THINK, CAN YOU AFFORD almost $100k in DEBT for a title? You still won’t own your own company – they will force a buy-out at age 65).

Want to know how Rena Tarbet and those older NSDs got rich? It wasn’t selling MK lipsticks. It was buying into the stock when MK Corporate went public (I bet you new consultants don’t remember that) and then Richard Rogers bought it back “at just the right time”. Yeah, he made those old-time NSDs filthy rich and they never let you forget it.  They didn’t do it the “Mary Kay way”….wait, now that I think about it, maybe they did…Ever listened to a National Sales Director Emeritus tout about all of her belongings and see beautiful pictures of her home and wonder “how come I have never heard of her before?” BINGO! She got all that money from the stock market, not selling $18 cleansers.

Still convinced you want to “dream big”? Dream again.


Let’s talk about all that inventory Mary Kay wants you to have on hand, shall we?

If you wonder where we’ve been, please see our last post dated February 14 (here)

Ever wonder why Mary Kay wants you to have all that inventory on-hand as a consultant? It’s such a mystery, even to those of us who liquidate and sell many more times the volume than someone who has to reach each person individually. (Look, we know it’s not a mystery as to why MK and your up-line wants you to buy it, but it IS a mystery as to why YOU FALL FOR IT).  We know that certain products WILL NOT SELL, it doesn’t matter how much you like it. It only matters how much the customer likes it. You can’t give Lemongrass eye shadow away, my friends.

If the average selling price of a Mary Kay product is $15 (and that’s generous) – why on EARTH you need a $3600 ($7,200 retail package PLUS bonuses = what, $7,800?? COME ON!) in product – that’s over 1,000 UNITS of products – OVER ONE THOUSAND PRODUCTS for you to store, keep track of (“now I know I had a periwinkle eye shadow in here somewhere but I can’t find it — gee, I wonder why? — so I guess I’ll call Suzie Consultant and exchange something with her”) and use on your TAXES AS AN ASSET – yes, inventory IS AN ASSET when it comes to tax time, no matter what your up-line says.

Let me tell you something about your initial orders. NSDs and top sales directors put together “cheat orders” so a mere lowly director can just copy and paste those numbers into an order form, because there is such a thing as “purchase fatigue” and after trying to figure out how not to piss you off with 8 Lemongrass eye shadows, 16 Black Raspberry lipsticks and 75 3-in-1 TimeWise Cleansers, her eyes are weary (almost makes ya feel bad for your poor, decrepit sales director). Your director doesn’t care if she ordered you 80 foundations this month and they are discontinuing them all next month – she has a quota to fill and by golly, you fit the bill. She will convince you that those will be great products to trade – or even more ridiculous, EVERYONE will want them now that they’re gone (yes, a company is often known for deleting its BEST SELLERS – /end sarcasm).

And don’t even bring up the “donations” tax contribution – save yourself the pain and agony of the 15-30% it might give you in a tax break (on a 100% full priced product) and stop donating lemongrass eye shadow to the homeless. The LAST thing a woman who is homeless needs is an ugly ol’ dried up product to make them feel worse about themselves.

Also, don’t forget, Mary Kay charges you SALES TAX on that $7,200 in product – that’s right! If you pay 7-10% in sales tax in your state, they will “generously” charge you that too – because they know you are the end-user (duh!) and it’s not going much further than the shelf in your closet.

AS TO THE “FLYING OFF THE SHELF” MYTH: In all the years we liquidated and sold to the masses online, we literally never had one product fly off from our shelf. We had to list it, sell it, ship it and receive feedback for it and sometimes a return. But never once did it fly (and that’s saying something here in tornado alley).

So, before making any investment into MK products at all, please contact a CPA who is not in anyway involved in Direct Sales or a lawyer not involved in Direct Sales and ask for their advice. The money you pay them will be a HUGE saver in the end. Otherwise, you will need to seek the latest liquidator on the internet and hope you can ship your excess to them before MK keeps the liquidator from buying anymore crappy product .