In MK, Profit Versus Cash Flow (it's not profit!), Plus, Inventory Woes

[chite]

I meant to come back here and continue my information about Mary Kay and how it manages to ruin so many people. Then I got busy with my actual job that earns me actual money, so my writing went by the wayside for a while. I actually wrote this one for Pink Truth last week, so apologies if it references anything strictly from PT or appears to be

Comments

[mizmoose]

I thought it was "negative Nancy" :-P

I think it's horrible that they've pretty much built a business on two things: Preying on people's basic insecurities of their own looks, and the fact that most people do not understand basic economics, and have the energy and brains to sit down, as you did, and realize that it's a money-losing deal.

And at the risk of getting well-toasted, I'm reminded of another company that, while it doesn't have the MLM factor, also preys on people's insecurities, and regularly changes the way they do things so that members have to spend hundreds, if not thousands of dollars, to buy new versions of things: Weight Watchers.

Finally, any 'friend' you lose over this wasn't a real friend. Real friends stick by you even when they think you're doing wrong. Which YOU ARE NOT. :)

[chite]

Don't get me started on Weight Watchers. I just quit out of disgust with the newest changes. After two big rounds through WW, I am pretty sure I know what makes me lose weight and what makes me gain weight. I've pretty much switched to "eat food, not to much, mostly plants."

My hope is that the more I post, the more people will at some point see something that they connect with, and they can realize that MK could be ruining their finances and relationships.

Today I had someone confess to me that she is $12k in debt from Mary Kay and she was not even a director. My post convinced her to leave, and she can start rebuilding her life.

[mizmoose]

I'm glad to hear that your speaking up helped someone else.

Sometimes, when I speak up about things, I feel like I am talking to the walls. Or maybe the spider in the bathroom.

[chite]

When you're trying to break through the Very Dense Pink Fog, it feels like you're talking to the walls.

[n_decisive]

I think it's great that you're speaking out on this. There are many company models out there that do this to their representatives, including PartyLite and most other home-sale companies.

To date, I've not known you to be negative, nor spiteful. I think that anyone who isn't still in a place where they're not able to see what you're speaking of will still appreciate the spirit what you're writing.

[chite]

It's very true about the other MLMs (whether they call themselves MLM or network marketing or dual marketing, they are all multi-levels).

I have had many people tell me that their company is different because there is no inventory. Again, the business model is flawed. If it is truly a sales company, then you would think that promotions would be based on *sales* and not on recruiting.

Excellent points all!

[ext_363787]

Well put. All!

~ Dazzling Diva Dana (Pinktruth.com)

Re: Excellent points all!

[chite]

Thanks Dana! Feel free to share it!

[millysdaughter]

I have tried selling Tupperware and Avon and Real Estate and antiques and the craft show circut and daycare and writing -- all on the dreaded Schedule C. Not actually in that order, however. I made a profit selling daycare and a smaller one writing for the paper. I had fun with the paper and the antiques and the craft shows. I still have random assorted "inventory" of everything but Real Estate -- the one kind of inventory I would be MORE than happy to own!
Of course, the most money I ever made in my life was slinging drinks in the bar...and there, all of the tax headaches belonged to the boss!

[chite]

It's funny that over on Pink Truth there are a lot of people why say, "there is no shame in getting a real job that pays money! Go work for someone and pay off your debt!!"

[millysdaughter]

And now I find myself in a job that has tiny amounts of cash pay but large amounts of "feeling like I dd something worthwhile today" pay. Sometimes...it really isn't just the money -- I know full well that I could easily make triple (or higher) my current pay by slinging booze, but that particular line of employment has nothing else to reccommend it -- but I will always know that if I ever **had** to "bring in $$$ RightNow!(tm)" -- it will always be available. Even if they bring back prohibition...booze will not go away.

[sircaliban]

I'm thinking that's part of the 'business' strategy of Mary Kay. They want you to carry inventory of the 'current' items.. but they keep changing what is current, causing you to re-invest in your 'store'. despite the fact that you have old stock that you haven't sold.

I'm sure that there are people that will tell you that it's not a manipulation by the company, that they are just trying to stay current with the current trends. But from an outsider's point of view, they are 'creating' a market for themselves by encouraging you to buy.

[chite]

Think of it this way: the consultant is the only purchaser they care about.