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| FAQ: When filling in my Weekly Accomplishment Sheets do I list my sales before or after discount? | FAQ: Am I Active? |
| "I.E. Sold miracle set for $102.00 but gave 50% off...would you put $51.00 in sales and leave product given away box empty. OR $102.00 in sales and $51.00 product given away." You can do your Accomplishment sheets either way, but I teach and prefer to do them like your second example (listing sales before discount, in other words the sales listed are the value of the product that left my shelf not the money I collected for it) because it makes it so much easier to figure my actual profit and business expenses accurately. I use Boulevard Software and it gives you the option to set up your business either way. Here is the method I use and my reasoning... When you take product from your shelf, whether it is for personal use, a sale, or as a gift I enter the amount of sales as the Retail Value of the product that left my shelf in the Sales Column and I record the discount I gave in the column marked Product Given Away (Section 1). Let's use the example of a $400 week.... So at the end of the week I can take 50% of my total sales (product value) and put it in my ordering account ($200) Plus the tax collected and put it in my ordering account ($26) 5% of my total sales and put it in my Sales Aids account ($20) 5% of my total sales and put it in my Preferred Customer (Advertising) Account ($20) Then I figure my actual business income by taking The Sales ($400) and subtract the Product Given Away ($20) [this can be Section 1 product I gave as a gift , the amount of discount I gave myself, or the amount of discount I gave a customer which in a sense is also product given away] Then subtracting the 50% I've set aside for inventory ($200), 5% for sales aids ($20), & 5% for pcp ($20) to arrive at the remainder which is my discretionary business income. [$400 - $20 - $200 - $20 - $20 = $140 Business Income] Sales Product Money Tax (Product Value) - Given Away - Collected - Collected - $400 $20 $380 $26 Inventory Sales Aids PCP Business 50% of Sales - 5% of Sales - 5% of Sales - Income $200 $20 $20 $140 To make it simpler (depends on your personality) you can do the 60/40 split... 60% to order, 40% income. But then you will need to subtract the Product Given Away from your 40%. $400 * 60% = $240 to order + sales tax collected $400 * 40% = $160 - $20 = $140 business income Either way, if you take the percentages based on the money you collected and not the product that left your shelf and you don't allow for product you give away as gifts, hostess credit, take off your shelf for personal use, and discounts then slowly you will eat away at your inventory, then over time you will have a huge hole in your inventory and be limited on the quality of customer service you can offer. To show you what I mean... Using this same example but using the amount after discount (money you collected) you would take... $380 (amount after discount) * 60% = $228 to order + sales tax collected $380 * 40% = $152 business income $240 (my first example) - $228 (this example) = $12 difference to order with $12 wholesale buys $24 retail product at a 50% discount. So your Inventory would be $24 short! That may not seem like much but... If all you did was give away $20 a week, like our examples (which isn't a lot if you are holding 1 to 3 classes a week. Think about your hostess credit!) and not replace it when you ordered, then over the course of a year you would be missing $1,200.00 in product from your shelf! (50 weeks * $24 shortage = $1,200.00) If that happens, you may find yourself back where you started, having to reinvest in Inventory again in order to continue your business. I have found it easier for me to be disciplined about replacing it in smaller amounts on a weekly or monthly basis every time I place an order. Mary Kay always said, "you can't sell from an empty wagon!" |
if i place my minimum $200 order at the beginning of each quarter and then smaller ones throughout, since the quarters start on the 15th of each month, i will always be "inactive" for the first 2 weeks of each third month? or the last 2 weeks of each quarter. assuming i don't place a $200 order after the first and just place smaller ones. i'ts calendar months not like 90 days? You can find the information on Consultant Activity in your Career Essentials Reference book on pg 16. I'll try to explain it here, and see if it answers your question... You are considered Active the month (calendar month... ie January, February, March... not 30 days) you place a $180 wholesale section-one order. (June 16th that will change to $200) And you are Active for the two calendar months following. Active or Inactive doesn't matter till the end of the month. In other words you may start a month as inactive, but if you place an order on the 16th (the beginning of the new quarter) You will be considered Active for the entire month. So according to what you wrote... If you placed a $180 w/s order 3/16 you would be Active for March (A1) April (A2) May (A3) June you would be "inactive" (I1) at the beginning of the month but as soon as you placed an order on 6/16 (for the new quarter) then you would be considered Active in June (A1). All of June. NOTHING changed really. Being inactive for those first "2 weeks" doesn't matter at all. You get recruiting commissions based on how you ended the month not how you started. And that's the only thing that is really effected by being inactive, until you get to I3 (5 months of not ordering). Then the mailing list thing happens. For all intents and purposes if you place a $200 order at the beginning of every quarter you will always be Active. Technically you aren't active for 2 weeks... but it doesn't mean anything practically. |
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