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| Loaning Product, Trading, Swapping, and Selling to Consultants and Directors |
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- JUST SAY "
 "!Here are the reasons we don't trade, sell, or loan current product to other Consultants, in case this is new to you, or you want to pass it along to another Consultant. .....I was approached by two sweet and wonderful Consultants today from another Unit for a product trade. They had no idea that it is our policy not to loan/trade/sell products to each other. I get calls from Consultants (outside of our Unit mostly) who just don't know any better or have never heard any different. I know that I wasn't aware of this until I became a Director! I imagine that if they are calling me, then they are asking you, too. And I just want to reinforce that you are doing the right thing by not trading product with other Consultants. If you want the information for your new Recruits or need some facts to help you explain it to them, here is the official word from the Directors Memo May 1, 2000. It was also printed on page 17 of the March 2002 Applause magazine...  Secondary Trading, Swapping and Selling - A No-Win SituationTrading with, swapping with or buying products from other sales force members violates your Agreement with the Company. Whether over the Internet, or person-to-person, the Company stresses that Consultants not trade with, swap with or buy products from other Mary Kay sales force members. Doing so is actually a violation of the Independent Beauty Consultant Agreement. The Agreement provides that you agree to only purchase Mary Kay products from the Company. Likewise, the Agreement provides that you agree to sell Mary Kay products only to ultimate consumers. This activity also can interfere with a Consultant's ability to receive repurchase proceeds in the event she decides to end her Mary Kay business. Products are eligible for repurchase by the Company only if they have been purchased from the Company by the terminating Consultant. Furthermore, such trading and selling of Mary Kay products can lead to adverse multi-level implications. You know the importance of avoiding such misunderstandings in the eyes of consumers regarding the nature of the marketing plan. You work hard to maintain the Mary Kay image. As you know, one feature that distinguishes Mary Kay from "multi-level" companies is that our Consultants order product only from the Company. There is only one wholesale sale from the Company to the Consultant, and one retail sale from the Consultant to the consumer. Encouraging a Consultant to order all of her products in her own name encourages her to plan for her business success!
Besides the legal problems here are some of the reasons I personally don't ask people for trades...
- I am an "INDEPENDENT" Beauty Consultant. :) Not the "dependent" of another Consultant. I made the decision about whether to have things on hand or not. It is my responsibility.
- Consultants tend to be very "Go Give" so when they are asked to trade product they will usually say "OK" whether they want to or not. But it isn't really fair to the one being asked. She has either worked hard or borrowed money to purchase her inventory. She may be paying interest on that product or sales aid. When she buys product and supplies it is based on what she needs for her customers. Invariably, if she trades it with someone to help them out, one of her customers will turn around and order that very product and she doesn't have it. Most of us cannot afford to stock items for our clients and yours. - I cringe at what customers must think when we say we will have to get it from another Consultant for them, or when they get a product that has another Consultant's label on it or worse yet layers of labels, or when guests and new Consultants see all these little bags being passed around at meetings. It would sort of be like going out to Stuart Anderson's and ordering T-bone and the waiter says "we are out, but I'll run down the street and see if Outback has any." - You never know how another Consultant has stored her products.... in her trunk during 100 degree or 20 below weather? Also how old is it; how long has she had it? We had a customer call the Company and complain that she found a hair in her Extra Emollient Night Cream. When it was traced back to the source it was found that the Consultant had received it in a trade from someone who mixed up her "returns" with her inventory. I want to give my customers product that I have gotten directly from the Company and I know how I have stored it! - I have heard horror stories of Consultants who loaned products and items, and didn't get them back. Then what do you do? I don't want to be put in the position of chasing down Consultants and the things I've loaned them.
- With the Earned Discount Privilege it is very easy to order products when you need them! As long as you are an ACTIVE Consultant, and your status isA1, A2, or A3, you can place any size order and get a 50% Discount!! When you have a PROPAY accountand you are ACTIVE you can even use the Customer Delilvery Service and have the productsshipped directly to her foronly$5 (for orders less than $100, $8.75 for over $100)!! By selling only $150 a month = $37.50 a week, you will be able to place a $450 Retail / $225 Wholesale / 50% Discount order every three months, and you will be making $200 profit. By timing this order at the beginning of the new order forms, when you need even one product you will be able to order it at a 50% Discount thanks to your Earned Discount Privilege!!! Of course if you want to make more money, then you'll want to sell more than $150 a month!!! How about $150 a week???!!! Or think BIGGER... how about $150 a day????!!!!!! - Trading is a huge waste of time and energy... not to mention the cost of postage and gas! Consultants who trade product spend hours calling other Consultants and shuffling product around town driving here and there and through the mail. Plus, just the paperwork of keeping track of who owes you what and what you have traded is a mess. When I don't have something that a Customers orders, I explain that I will be placing an order soon and will get it to her as quickly as possible. I give her whatever products she orders that I do have on hand. I fill her bag with samples, candy, a coupon that entitles her to 50% off any product she has never purchased before, and a note thanking her for her patience. My customers love it when I run out of something! :o) Then I order the remainder of the products with the Customer Delilvery Serviceand have them shipped directly to her!! It is quick and easy, and keeps my customer happy!! Now the thing that may have confused you is the requests that you see me pass along on the email list. I'm sorry if I confused you by doing this. I only send out requests for products that you can no longer purchase from the Company. I even feel kind of funny about doing that because of the MK policy, but I don't know of any other way to service that customer, and get her the product she wants if we can no longerorder it for her. I can't be actively involved in trades for current product that can be ordered.SeveralNational &Executive Senior Directors have advised me about this, too. It is hard for me to say  "no", but I'm sure you realize that with 100 plus unit members, plus all the other Consultants I know, I get lots of requests for trades and I have to turn them down.If you have any questions or want to talk to me about this, please, give me a call. Here's to your success! Lynn Lynn A. Gleason, Independent Sales Director, Mary Kay Cosmetics Call/Text (651) 538-0538 FAX 651-204-2245 www.unitnet.com/LGleason
Visit my web site for tips, to see what's new, and to shop online... www.marykay.com/LGleason
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