INVENTORY

The benefits of having inventory are:

1. SAVES you TIME to have on the spot delivery.

2. KEEPS YOUR CUSTOMERS EXCITED about looking & feeling their BEST!

3. SAVES you MONEY. The company?s delivery service is wonderful when you?re out of town & your customer needs products before you can get their order to them. If you are using this service primarily count up what that has cost you for the past 5 months or look at what it cost you for last year. Yes, it?s a business expense, but you are paying for that service as it?s eating up YOUR profits. That expense isn?t part of your inventory replacement cost ? it?s taken out of your profit margin. If you are thinking that other home based companies charge a shipping fee so I?ll just pass it on to my customer they won?t mind. Personally when I have thought about ordering an item from Pampered Chef I find it so distasteful & unprofessional to pay shipping that I?ve instead ordered something similar from Amazon where they don?t charge shipping or have gone to Walmart. Just because other home-based businesses do it doesn?t make it right in my eyes. That hurts our community because I want to support local businesses ? home-based & locally-owned businesses. Having on the spot delivery is one of the strongest features that Mary Kay built into our marketing plan. Think & plan smart!

4. builds & strengthens RELATIONSHIPS!! CUSTOMER SERVICE is the biggest reason to have an inventory as having on the spot delivery is good strong business sense. How long will you continue to shop at your grocery store, Macy?s or any retail establishment if you go to purchase items that you use everyday (remember our products are consumable) & the store tells you that they will order your items & you can pick them up in a week or two or that your items will be shipped to you (at your cost) & you?ll receive it in 3 ? 10 days. One of the greatest features of our ?try before you buy? is that your customers are able to try products, be pampered & LEARN information about products before they buy them; but when they then have to wait 3 ? 10 days before receiving products they?ve forgotten many of those helpful tips you very skillfully shared with them at their party or class. They loose their enthusiasm for the products & their benefits.

Another part of customer service is the face-to-face or one-on-one personal contact you have when you deliver to them or they come to your home to pick up products. We are in the relationship business. The other day I was reading an article by Warren Buffet where he emphasized the importance of not only taking care of our customers, but the importance of ?delighting? them ? making them feel special & that you?re going out of your way to give them top shelf service. We do that by providing on the spot delivery ? just one of the ways that sets us apart from other home-based businesses. Mary Kay taught us that each person is wearing a sign saying ?make me feel important!? Additional ways I show them they are special is to:

**wrap their order in colorful tissue paper & use a pretty seal to hold it together (both Dollar Store purchases) or I make my own with a stamp.

**include a nice piece of dark chocolate or sugar free treat for diabetics

**plus their gift with purchase

**personalize their package by adding additional product information (print-out from Product Knowledge)

**show new or additional products so they are informed about our product line. Offering a sample of a product such as a different lipstick shade for them to try.

For example, for the past couple of years with each reorder I give a sample of the After-Sun Replenishing Gel (using small clear plastic round craft containers ? 8 to 10 in a bundle (depending on the size you want) purchased at the Dollar Store). I use my label maker to identify what is in the container plus I give them a fact sheet which you can find on Marsha?s unitnet site. I do this from May ? Aug); I was & continue to be amazed by my reorder business with this 1 product.

**tie the MK bag together with a couple of contrasting color strips of organza or netting. I want my customers to feel this is a present they are giving themselves.

My customers love that they can call or email me& receive same day or next day service ?they don?t wait. I don?t care if they say it?s not a rush ? deep down I know they want their items now or they wouldn?t have made contact. They usually have been meaning to call as they are scraping the bottom of their containers, but just haven?t gotten to it. Why do you go to the grocery store ? because you need items today or at least for the week.

Yes, I do have out of town customers that I mail packages to, but I?m able to mail same or next day depending on when I receive their order. I follow the same prodigal (except during the hot months the chocolate is not included, but I include a stamped self-addressed envelope for their payment. I absorb the postage cost. See additional article about using Priority Mail Regional Rate boxes.

Other building relationship ideas are to immediately send ?Congratulations? notes to gals when they book their appt. or date with me. ?Thank you? notes to hostesses right after their party or date. Using the PCP program & sending customer ?thank you? notes for their business! I?m layering my service & personal touch! The notes aren?t fancy (use a post card), but that personal touch is appreciated! When was the last time you purchased something from a business & they sent you a thank you for your business?

INVENTORY:

If you are thinking I don?t have the money to invest in having an inventory on my shelves then these ideas are 2 options:

1. Hold 2-3 parties weekly for a month or as long as it takes to build your account until you have a full inventory. That means you do NOT take any ANY profit, not for gas for your car or supplies that you pick up at the Dollar Store, or coffee @ Starbucks. During that time you will use the entire income of each party, appt. or reorder to order the MK products you need plus to build your inventory. Once you have 4,800 wholesale (not retail) on your shelves you may go to the 60%/40% distribution of your sales. The first 50% is for product replacement, then 10% for sales aides (section 2 or items you purchase through other venders), website & PCP & the remaining 40% is your profit to pay family bills, save for a family outing or trip plus save some for Career Conference & Seminar or other MK events. When you?re stocking your shelves think about what your customers order the most of & have those items available. If you sell a lot of skin care, a particular mascara, primers, oil-free eye make-up remover keep those items well stocked. When a certain popular item is discontinued that I know my customers will miss I stock up (examples: Sheer Bliss Cream Blush & Lip Primer) & boy am I glad I did.

Honestly, it?s hard to be excited about a product if I don?t have it to show & sell & that?s especially true when it?s Limited Edition items. When new items come out, order just a couple of each right away -- one for demo & another one or two to sell. Immediately book your Preview Parties so customers can ?test market? the new items ? you need their feedback to see if these will be ?hot? items to order more of or not. That way you?ll have time & the money to order more if you want to before the Limited Edition items are gone. That sense of urgency is a good motivator for me plus it keeps my ?service? & our products front & center in my customer?s eyes. Customers like to be in the know & even if a certain product doesn?t wet their whistle it may be give them an idea for a gift for someone else.

2. take out a business loan. If you want to be making money like a business ? then you need to treat it like a business. Would you return to a grocery store if you go in to buy milk, eggs, bread, etc or JC Penney?s to buy your child some clothes & they tell you they?ll have it for you in a week or two? Our business is no different. I would suggest taking out a loan for 6,000. A full inventory is 4,800 (wholesale). I suggest an initial order of 3,600 plus tax & a few sales aids. You?ll have a reserve to order additional items to fill in holes of product you need. Once you have paid off your loan & maintained your full inventory then you can begin the 60%/40% distribution of your sales. The first 50% is for product replacement, then 10% for sales aides (section 2 or items you purchase through other venders), your website & PCP & the remaining 40% is your profit to pay family bills, save for a family outing or trip plus save some for Career Conference & Seminar or other MK events