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