Anonymous suggested that we have a place for selling ideas, particularly sell-through ideas for the upcoming changes in inventory. Please bear in mind that the changes revealed at Seminar this year are scheduled months from now (July 2007). The lipstick changes are scheduled for December and the other color changes are not until March of 2008. The company has given us lots of lead time plus there will be lots of info on this in upcoming issues of the Applause magazine.
That said, I think some of the best ideas and information come from the salesforce in the field. So please post your ideas here!
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July 25, 2007 at 11:48 am
pinklady
I understand the need for change but we just did a massive color change a little over 3 years ago. This is different. That was packaging color, this is not only package color but everything that goes in the compact (eye shadow, cheek color, powder, bronzer, creme-to-powder and cream foundation) will be changing shape. I am concerned for the customer that purchases the custom compact filled in say September and I know that the colors she places in that compact won’t be available in that shape by March 2008.
I have already been working down my inventory to just what my customers order. However, we have had so many repackaging and discontinued products each quarter that I can hardly keep up.
I don’t know about you guys but I have die hard customers that get stuck on certain products. With such a massive change, it will be hard to keep them from totally switching. (at least the color part)
July 25, 2007 at 11:52 am
pinklady
I started to phase out so much inventory (i.e. 3-4 of each foundation and color product) a couple of years ago when we had the VP of product development at out retreat. She spoke of changing the foundations again soon. Also the mascaras in the next few years since MK didn’t change from Endless performance for 8 years.
The difference between say Cover Girl and MK is that we have to absorb the cost of discontinued or phased out product. An interesting fact is that of all the MK markets…. US and Canada are the only two thats consultants carry inventory. In other markets the clients wait or product is ordered on a need basis. This info was according to MK corporate that was at a Red Jacket thing our area did last January. Interesting????
July 25, 2007 at 12:07 pm
Me
Pinklady, I honestly don’t think it is going to be much of a problem with such advance notice. If a customer bought a filled compact in September, I doubt she would be ready to replace anything by March anyway. Our color products last forever! As far as foundations go, I have not heard if those are changing size. Does anyone know for sure?
If a customer purchases an eye shadow or blush with any other company almost, she would have to replace the entire compact when she is ready for a refill. Many times additional colors are also included in a compact and you have to get those whether you want them or not, and when you are ready for a refill of one color, you have to buy the whole shebang again. So even with our changes on the horizon, we are still more economical.
Many times I will ask a customer if she is going to be carrying the eye shadow or blush around with her. If she is not, I tell her don’t buy the compact. If she is, then I suggest the compact to her. I lose a bit of a sale, but it ties the customer to me.
July 25, 2007 at 3:57 pm
anonymous
Pinklady,
I understand your concerns. I honestly do. That’s why I suggested a topic where we could discuss SELLING IDEAS.
That said, I too have clients who may not be thrilled about the compact changes. The last MAJOR overhaul was actually 5 years ago when we went from pink to platinum in summer 2002. There were tons of color changes. Some were same color name, but slightly different color (Spun Silk or Hazelnut for example). And some were entirely new colors. Then we have had some minor changes since then, but nothing on the scale of 2002. Of course the difference then was that the product didn’t change shape. Our clients could still use the pink compacts to hold their new platinum colors and vice versa.
MKC just changed the mascaras, so I wouldn’t look for those to change again.
I think that we will probably still have clients who will hold onto their platinum compacts for awhile and want to refill them for as long as we have products that will fit (especially if the price is higher with the new products). And Me is right, a client who buys in September (or even December or January or February) may not be ready for refills yet by March anyhow.
And don’t forget about the MK Product Guarantee. If your client is irritated that her Color 101 is “outdated” in March and she purchased it in September, she could return it to you and exchange it for new products. You’d simply return it to MKC and get replacements through the Product Replacement Program.
Ok, since this was my idea . . . selling ideas . . . .
1. Starting in September, I’ll give lipsticks as gifts to clients who come as guests to meetings with me or hear the marketing plan.
2. Offer a Lipstick special - buy 1, get 1 1/2 off; buy 2, get 1 free.
3. Purchase a filled custom compact - 3 eye colors, cheek color, applicators, lip gloss and receive the lipstick for free.
4. You could do the same thing with eye colors and cheek colors.
Other ideas?
July 25, 2007 at 6:47 pm
pinklady
I got more details from friends today. The new compact has smaller pans and a little lever that you flip and ALL the colors come out. The color selection is real small. Like 10 or so. Not the color selection we have now. No dual colors. I asked my friend how the crowd took things and she said real mixed. The younger crowd seemed to like the new look and the rest were a little upset. I guess the big thing is the sheer volume of change.
Don’t get me wrong I love change… in moderation. Also I am 30 so I am not that old. I service lots of clients that have lost consultants over the last couple of years that tell me they hate that the extra emollient night cream is in a tube and all the jars are disappearing. I understand it is for sanitary reason but these women don’t care. One woman even squirts her night cream into an old jar.
I guess I am just emotional due to the pregnancy and the thought of all this inventory on my shelf that may be wasted really gets to me.
As far as mascaras, the VP of production said that MK will never let another mascara go for 8 years before changing it. The industry changes mascara formulas about every 2 years. I know the cosmetic industry is like fashion and that moves at warp speeds. My complaint is that it is hard on the retailer when we are led to keep inventory and plenty of it.
July 26, 2007 at 3:30 am
mkrules
“The younger crowd seemed to like the new look and the rest were a little upset.”
This makes sense. If you look in the Look Books, the models seem to be a bit younger and I think MKC is targeting younger people. We have a bit of a stigma that we are “grandma” makeup and we need to overcome that. I think having 10 or so shades that change seasonally would be great. Customers looove something new. Look at how much most companies have new products, even Avon who’s marketing is similar to ours. If you like to keep color in stock, that is a personal choice. I choose not to due to the stories I have heard about this very thing.
You will have those people who love certain shades, and you can keep some inventory for them. The rest? Have an Invenotory Reduction Sale! Put on sale whatever you want to move, or have a “fill the bag sale”, where they can fill a small plastic MK shopping bag for $XXX. You decide the price.
July 26, 2007 at 8:01 am
anonymous
MKR,
I LOVE the “fill the bag sale” idea! That is awesome!
Another idea would be a “Trash It” sale - for each item (of another brand) your customer brings to toss out, she can receive a discount on MK items.
The way I run my trash it sale is 1-5 items to toss out = 10% off anything she wants; 6-10 items to toss out = 20% off anything she wants; 11+ items to toss out = 30% off anything she wants.
I’ve also seen some consultants say that they can get 20% off a replacement item for each item they toss. So they bring 5 items, they can choose 5 similar MK items at 20% off, etc.
July 26, 2007 at 10:39 am
anonymous
The more I think about this whole thing, I have a slightly different conclusion than I had earlier.
If it’s true there are only 10 eye colors that will change with the seasons, then I think it would be awesome to still have some of the discontinued on my shelf for at least that first quarter to give my clients more choice. As the quarters move along and we get more and more shades, even if they are limited edition, we’ll probably all have some leftovers from previous quarters, BUT I think it is GREAT that MKC is not just sticking us with 30+ all new colors and discontinuing our current ones.
Based on my new thinking, I wouldn’t have a sale or offer discounts to move my existing color because I’m certain that I could still sell it. Especially since it can stay on our websites for 1 year after it’s discontinued. It’s under Last Chance on our personal website set-up options and you can go in and make changes to that section anytime you want.
July 26, 2007 at 11:07 am
Rebecca
What works really well for me is a buy 2, get a 3rd item free basket. I only have this sale once every two years. Only products that have been discontinued, past limited edition, serioulsy overstocked items, and any products approaching their expiration date, or close to the 3 year shelf life go in my sale basket. I offer this sale ONLY to my existing customers.
Inventory management, now this is a whole nother topic! Simply put, just don’t stock a lot. If you are consistently selling $300 a week, you probably need to stock a bit more. If you are consistently selling $100 a week, not so much!
July 26, 2007 at 11:11 am
Rebecca
Anonymous, I agree with you.
We can still sell any products up until their expiration date. The rest of our products have a MINIMUM shelf life of 3 years.
If I have a specific product sitting on my shelf for 1.5 years and I have not sold a single one, that’s going to go into my buy 2, get 3rd free basket and I’m not going to stock that specific item any more. To my customers, I simply refer to those items that I don’t stock (as long as I can still order them form the Company) as “special order” items.
July 26, 2007 at 11:12 am
Me
pinklady, are you saying we will ONLY have 10 colors of eye shadow? And I’m not sure the “change seasonally” is true, is it? I see that MK Rules mentioned it, but did that come from MK corporate?
Where did you see that the VP of production said that about mascaras?
I am concerned that rumors may get started here and I do NOT want that to happen. Please–everyone give your source for what you are saying about changes, possible changes, etc.
I would love it if someone who has actually been to Seminar would comment on what was said, and then please put it under the Seminar and Dress Code topic. Thanks!
July 26, 2007 at 3:44 pm
Me
Ideas from a director friend re selling existing inventory. Discussion was at Seminar:
On the bus, we had a nice talk about options for moving out existing inventory, here were my comments/suggestions:
1) We have practically 1 year to move the current line. Get real. If you sell products, that should be no problem. I just recommended that she NOT re-order any of the colors that are not her better sellers.
2) Use the current inventory of eye colors for little prizes at parties…like for winners of a game, or the hostess meeting a challange, etc., rather than buying something else.
3) Offer the eye colors or cheek colors as a PCP gift option in place of the current gift. You’ve already paid for them, use them to your advantage. When closing out a sale, tell the client that she can have the current advertised gift, or her choice of an eye color or cheek color from your EXISTING INVENTORY. Yes, the cheek color is slightly more expensive, but it’s already paid for, and you’ve receive BOTH Star and Court credit for it. Why buy something else if you can use what you’ve already paid for?
4) Use products, rather than the hostess gifts, for your parties.
5) Last, but not least, next Summer you can reduce the price of whatever is left…women will buy anything on sale! That way you then have cash to order the new colors, and you are out nothing.
July 26, 2007 at 6:12 pm
colleen
Hey ME did you find out if we only have 10 eye colors or what Pinklady meant in her post? Pinklady if you read this please answer if ME doesnt.
July 26, 2007 at 6:19 pm
Me
Colleen, see comment under “Seminar and Dress Code”
July 26, 2007 at 9:00 pm
pinklady
To address the comment on mascara… That was last fall during a special red jacket rally meeting. My NSD is a top teacher in MK and has been able to bring in top MK corporate for years. This comment about the mascaras and foundations came from the mouth of the VP of production. It WASN’T in writing or anything. We had an hour question and answer session and boy was she hit with questions from over 100 women.
The 10 eye colors that was told to me came from my MK friend that just returned from the Pearl Seminar. She said the color selection was very limited. She is an engineer by day and was concerned about the packaging and lever that released all the colors at once and not just one at a time like the current one. She did say it was much prettier. Just limited on color.
July 26, 2007 at 9:03 pm
pinklady
Also, some of the comments about the product changes and dress code that was seen at seminar are EXACT comments via email from friends that WENT TO SEMINAR. I am not placing rumors or hearsay. I am looking for a way to handle my business in a professional manner and anticipate any backlash. I have been in other sales fields for over 9 years and you had better be ready. Casually brushing their questions or uneasiness to the side won’t work and in the end you will be out a customer and have a tarnished rep.
July 26, 2007 at 9:08 pm
Me
Pinklady, I did not mean that anyone was purposely starting rumors at all. I was just concerned that a casual comment from someone who was not actually there might be misconstrued. Believe me, it has happened many times on various blogs. The fact that you clarified above where the information came from (friend in email, for instance) is exactly what we need. That way we can know what was seen, what was heard, etc.
I was curious about the VP of production comment so thank you for telling us about that too. Very interesting.
July 26, 2007 at 9:17 pm
pinklady
I also read on PTs site about the Asian markets…. well the VP of production explained that the real technology and trends come from the Asian markets not Europe and places like Switzerland. In the Asian markets the emphasis is on skin care. Customers there like routine and lots of it. The more steps the better. That is why they love the classic basic. (or their version) I know a comment was made on PTs site about it and I wanted to comment but I knew I would get attacked.
A lot of the new products… Affection, Asian inspired bags and such like the shawl, last Christmas’s colors, eye products and new scents like the spa products are results of over 2-4 years of research and trials.
MK doesn’t take this stuff lightly and they don’t rush to put things out to be trendy. I was very impressed by the VPs knowledge and explanations of products. They really do their homework.
I’ll try to dig out my notes from last year…. the President of MK US is coming here in September… I can’t wait.
July 26, 2007 at 11:44 pm
Rebecca
I wonder if perhaps we are going to have 10 eye colors as a core group of basic colors, then have additional colors each season based on fashion trends. ??? Just pure speculation on my part.
July 27, 2007 at 12:54 am
Rebecca
Oh My Goodness! I just listened/watched to a fantastic video on InTouch!
Go to InTouch, Resourses, MK Online Videos. Load Greg Franklin’s Inverview with NSD Emeriti Mickey Ivey. They discuss customer service, inventory, recruiting. It is AWESOME.
Everybody - you All just HAVE to listen to this video!
July 28, 2007 at 12:59 pm
colleen
Rebecca Im going to go there tonight I have not been on line that much for working thanks for letting us know ..who says MK doesnt have training
Bahh humbug!!!!
July 28, 2007 at 1:10 pm
colleen
Einstein (Rebecca is right) In touch has done a BIG overhaul!! Its more user friendly and if you look under learn MK and all the topics they teach you everything!!!! I LOVE the way they have a tab called Starter Kit and it teaches you how to pack it. A LOT of new recruits will love this website if they cant get to meetings.
July 28, 2007 at 2:04 pm
colleen
This is from another board I know you all would like to see this: One persons opinion of this years seminar..The poster said the following
The theme through the consultant classes seemed to be to tell it like it is….don’t make false promises of income….respect other consultants’ customer relationships, etc. One thing I was glad to hear an NSD say was to quit recruiting personal use consultants. Why trade your 50% commission for 4% twice a year? (not to say that a consultant can’t be personal use only…however, I think her point was you can’t build a team or a unit with ladies like this…look for people looking to work instead of recruiting anyone and everyone.)
I thought there was good selling training, and a lot of emphasis on the new color tool available. In all, I thought it was an informative and useful seminar. I’ve been in 19 years, so I’ve seen a lot as well.
March 7, 2008 at 7:33 pm
LookingforAnswers
I know this is a bit late to put on here, seeing as the new compacts and some of the new colours launch in about a week, but I’m new to this board and thought I’d share what I did.
Last March, I found out on the other site that the colour products would all be changing along with the compacts and the d/c foundations and their compacts. This was pretty distressing for me as I had nearly $3500 retail of these products alone!!
I held a spring colour sale (half price off all colours, compacts and the like) with my customers and sold about $1500 worth in a week. I was grateful.
Then in September, I held another half price sale and managed to move some more.
In November, I sent them all a note about the upcoming changes and emailed them the video of the new compact. I told them that they would only be able to get the current colours until March 15th but if they still wished to do that, they could have them at half price until then. More people took them.
So I’m happy to report that I have less than $500 in colours left.
Now I think I’m just going to donate the rest to a women’s shelter and write it off on my taxes as a charitable donation.
Just my two cents.
March 7, 2008 at 9:10 pm
foreverpink
good for you lookingforanswers. Instead of griping and complaining, you were proactive and did something about the situation that worked for you and your business. You realized that you did have options and you worked them to your advantage. You could have gotten on Pink Truth and whined about having been stuck with $3500 in retail products all because of a product change like some others do, but instead you did what you had to do and still managed to come out on top. I admire that!
This business does give us options, so I cant understand why those who are extreme in their crtiicism dont just excercise or take advantage of those options and move on.
March 8, 2008 at 12:01 pm
LookingforAnswers
Thanks foreverpink.
I do understand the anger and resentment from the PT people and how they feel maniplulated and duped but at some point you have to get out of that and do something.
Their desperate need to receive recognition and to fit in brought them to the point of exessive debt by making poor decisions. I did that too, to the tune of $20K in inventory that took me three years to reduce to less than $4K. But I did it and I helped my former unit do it too and have helped other sister consultants and directors as well.
I honestly believe that this business is about helping people and that is what I aim to do.
March 8, 2008 at 10:11 pm
MK4ME
I want to point out another very valuable point. In the March catalog, both the new and the former eyes and blushes are available. So your former shape products are still in the book and available to order.
Please also realize if a client has a custom compact or palette, she may only need to refil like a highlighter color because that usually runs out faster, my guess is she is going to want the former shape until the majority of the compact needs to be refilled.
The former shapes are not going to be obsolete March 15th, customers won’t even see the Look Books until towards the end of March. And as I said, many clients are still going to be requesting the former shapes.
I wouldn’t jump to get rid of the shapes just because the new products will be available. Not everyone is going to want to change. I still get requests from products years ago.
I love the way the Company is handling this, we knew in plenty of time to scale down and now there isn’t like a solid drop deadline both are nicely featured in the upcoming Look Book.
It is a win/win situation. JMHO
Using PT logic will always discourage a consultant and discouragement is what brings about the failure. I guarentee even after June, I will have many customers requesting the former shapes and if I don’t have them, I will be trading with any of my unit members that are may have some left to help them move that product.
Handle well this transistion would have been as smooth as silk, however with a site like PT - you might just as well yell “fire” in a crowded building and start a for sure panic - a well organized approach will work, screaming fire will cause people to get hurt and I do feel for those that fall to the PT logic, many have been hurt. (and I am sure many more will be) .
Poor individuals are reading advice and instead of thinking, let me try to make it work the way it should -it is all negative and the Company is screwing us, send your product back before you are stuck with it. You can’t sell it anyway, I bought my car and unit and recognition so I am in $20,000 worth of debt and I know you must be as stupid as me and you must be just as stupid as me, so …or my favorite, you can’t be a successful honest director. Cuz we said so.. I was fogged and did many wrong things and then I saw the light and then I couldn’t make it work, so it can’t be done…
Well maybe it can especially if you started doing it right in the first place!
And Raisinberry needs professional help.
March 9, 2008 at 11:37 am
Me
“And Raisinberry needs professional help.”
She REALLY does, doesn’t she? At least we haven’t had any more of her drunken/drugged ramblings about how the world laughs at us.
March 25, 2008 at 3:40 pm
foreverpink
question,
I have been mailing alot of product lately. I dont normally charge shipping but I think I might need to start. How do you guys handle shipping if you mail off product.
I am afraid that my out of town customers might find another way to get their product if I charge shipping, because they might just go get it from someone else local or even worse the mall or local discount store.
any suggestions?
March 25, 2008 at 6:15 pm
anonymous
I always charge for shipping. When I started my business, I lived in a differrent part of the country than I do now and I have a ton of out-of-town clients. Have I lost clients b/c of shipping charges? Probably a couple. But even if I’m not charging shipping, there’s a lot of reason to have a local consultant.
Here’s how I look at it . . . There is no company out there for which you don’t pay shipping. For Longaberger, it’s almost 10% of your retail purchase. That’s outrageous. I live in Chicago where our sales tax is 9.5% and about to go up to 10.5%.
The way I handle shipping charges is that I charge a flat priority mail rate for 1 pound (I think it’s like $4.60). After that, I eat the cost. So let’s say that my cost for shipping is $6. I charge my client $4.60 and I eat the other $1.40. And at the end of the year, I have kept all of my postage receipts and I know how much I spent. I then subtract out what I got reimbursed on and the difference is what I take as my expense. My clients never have a problem, especially when they often see $6 in postage, but only got charged $4.60.
Because I also do things like mail birthday cards and invitations to my holiday open house to my hundreds of clients, postage gets outrageously expensive.
Here’s my other 2 cents. . . .
On a $40 order, 50% goes to reorder our inventory ($20) and $20 is our gross profit. Subtract from your $20 the $4 gift with purchase and now your profit is $16. Now subtract the $4.60 in postage, not to mention the cost of gas to get to the post office and any mailing supplies you used and now you’re looking at no more than $11.40 in profit on a $40 order.
Just my opinion. My director doesn’t charge shipping. So to each his/her own, really. And if I had a client who complained about it, I would work with them.
March 25, 2008 at 8:01 pm
mk4me
Personally, I would rather cover the shipping than risk loosing a good customer. For me, shipping will remain free. Actually with the price of gas, I think it might end up being cheaper to mail!
March 25, 2008 at 10:09 pm
foreverpink
thanks guys. I have thought about a flat rate kind of thing.
March 26, 2008 at 7:58 am
anonymous
One other thing . . . if someone is ordering a mascara, I don’t charge $4.60 shipping. I will charge $1 or so. Also, if it’s after a class and let’s say they purchase a Blemish Control Toner (out of the blue) and I haven’t brought it, so I have to ship it, I don’t charge shippng then.
March 26, 2008 at 9:10 am
foreverpink
thanks, that makes sense
April 2, 2008 at 7:33 pm
foreverpink
mk4me, you say you do a lot of bridal fairs. What exactely do you do at the booths, I mean what do you offer people when they come to your booth? I am looking for ideas because I am going to be doing one this fall