Mary Kay - direct selling method
Friends, in today's post we will talk about the business at Mary Kay, about what are its development trends and what we should expect from cooperation with the Company. I must say right away that the material will be useful to everyone - both to Consultants and those who are just thinking of becoming registered with the Company. I especially recommend reading the article to Consultants who have recently come to Mary Kay and who are only getting acquainted with the features of running this business.
At the beginning of the post, we will talk about how things are with the direct selling industry in the world. This will be a kind of introductory part, a general overview. Next, we’ll analyze specific figures that are directly related to Mary Kay’s business.
I want to note that when writing the first part of the article, I had to rely on the data presented in the study of the direct selling industry in the Russian Federation, in which Gene took part. Director of the All-Russian Association of Marketing Research Companies (AMI) A. Izhorsky and President of the Association T. Shokareva, Ph.D. N., and ... Executive Director of Mary Kay CJSC :).
Direct Selling Industry in the World.
First, let’s determine what is direct sales.
Direct sales today is a dynamic and rapidly developing way of marketing goods and services to the end consumer directly, bypassing trade organizations.
How is the product sold using the direct sales method?
Goods can be sold at group presentations (the so-called group sales) or through one-on-one sales.
In the first method, the distributor demonstrates the products to a specific group of guests invited by the hostess of the house (in our case, the Hostess of the cosmetic class) in whose house the demonstration is held.
A part of direct sales sellers often demonstrate their goods in a cozy, comfortable atmosphere with potential home buyers and at the time that is most convenient for the client.
What groups of goods are sold using the direct selling method?
- personal goods (cosmetics, perfumes, skin care products, jewelry, clothes and shoes),
- household and / or family goods (laundry detergents, home care products, decorative accessories, household utensils, household appliances),
- health products (products for weight loss, vitamins, gymnastic equipment),
- educational and leisure products (books, video and audio tapes, computer software, toys, games),
- various services
Now some statistics that will help give a more accurate idea of the direct selling method in the world:
- 99.9% of independent sellers are individual entrepreneurs,
- For 80% of independent sellers, direct sales are secondary employment (less than 30 hours per week),
- 75% of sales were carried out directly through personal contact with consumers,
- 70% of sales took place at home with consumers,
- 55.7% of independent sellers are women, 25.9% are men, 18.4% are groups or couples.
In 2002 (according to the World Federation of Direct Selling Associations), total retail sales by 47 million independent sellers amounted to $ 85 billion.
For example, the United States accounts for $ 28 billion, the share of Japan - $ 24 billion.
And here is the list of world "monsters" - direct sales companies:
Name of the company Year of foundation Income in 2008 (USD)
Avon Products, Inc. 1886 10.9 billion
Amway Corporation 1959 8.2 billion
Vorwerk & Co. KG 1883 3.15 billion
Herbalife Ltd. 1980 2.4 billion
Mary Kay Inc. 1963 2.4 billion
Primerica Financial Services Inc. 1977 2.3 billion
Tupperware Brands Corp. 1951 2.21 billion
Forever Living Products Intl. Inc. 1978 2.1 billion
Oriflame Cosmetics 1967 1.68 billion
Natura Cosmeticos SA 1969 1.52 billion
Nu Skin Enterprises Inc. 1984 1.23 billion
Mary Cay Central Office. Dallas. USA
As you can see, our company has a very solid position in the global market. Well, of course, we are unlikely to keep up with the list leader, especially in terms of product quality :).
Well, dear friends, it’s time to move from general to particular, namely to specific figures and facts related to the Mary Kay business, and therefore to each of us.
To begin with, I propose statistics that I would head like this: “Social portrait of Mary Kay, an independent beauty consultant in the early 2000s.”
Marital status of Mary Kay Beauty Consultants:
71% - married / live in a civil marriage
17.7% - single / never married
11.3% - divorced / widow
Mary Kay Beauty Consultants Age:
25.3% - 25-30 years
21% - 41-50 years
20% - 35-40 years old
14.6% - 31-34 years
11.5% - 19-24 years old
5% - 51-55 years old
2.6% - 56-65 years old
Education of Mary Kay Beauty Consultants:
75.3% - higher
9.4% - incomplete higher education
12.2% - secondary special
1.5% - average
0.8% - academic degree (Ph.D. or D.Sc.)
0.8% - professional degree (for example, MBA, etc.)
Now, after we have drawn for ourselves a social portrait of the Beauty Consultant (I wonder if you found a reflection of yourself in this portrait?) We turn to the Mary Kay business theme.
(Abbreviations: NK - Independent Consultant, LBG - Leader of the Business Group)
Question: “Are you satisfied with the business at Mary Kay?”
12% - fully satisfied
30% - very satisfied
48% - satisfied
10% - not very satisfied
50% - fully satisfied
35% - very satisfied
16% - satisfied
Question: “What do you think about the prospect of developing business at Mary Kay?”
I am sure that my business will develop
66% - NK
91% - LBG
I think my business will remain at the same level of development
32% - NK
8% - LBG
I think my business will deteriorate / cease to exist
2% - NK
0% - LBG
As can be seen from the statistics, women who have achieved the status of a Leader of a Business Group are more optimistic and more confident than ordinary Consultants. In this case, the Consultants have something to strive for, and the first failures are not a reason to quit. We recall the folk wisdom: "The first pancake is lumpy."
Therefore, dear Consultants of Mary Kay, I want to wish you to remember your difficulties at the beginning of your career only with a smile ...
Eh, it swept me over the lyrics, but, after all, the article is not finished yet. Therefore, for you - another interesting “portion” of statistics:
100% of Consultants are confident in the quality of the products they sell.
93% of consultants are satisfied with flexible working hours
84% of Consultants consider it important for themselves and their family to have additional unlimited potential income
80% of Consultants are satisfied with the ability to easily sell products
87% of Consultants consider recognition from the Company important for the development of their business
Here, as they say, comments are unnecessary, the numbers speak for themselves.
And now I propose again to turn to the method of direct sales, but with reference to Russia, and find out whether people willingly purchase products through distributors? How familiar are our fellow citizens with this method, do they trust the consultants and the quality of the goods offered?
In general, the data for Russia is as follows: 80% of Russians have heard about this method of sales. Representatives of the young and middle generation, mostly with higher education and having normal material income, are more savvy in this matter.
It is clear that urban residents (86%) know more about direct sales than rural residents (76%).
So, the respondents were asked the question: “Do you know what the direct selling method is?”
The result is the following:
76% of men and 84% of women know about this method. The age breakdown looks like this:
Among people aged 18-29 years old, 95% of those surveyed know about direct sales, aged 30-49 years old - 85%, aged 50-59 years old - 78%, among people over 60 years old - 58%
And here are some very interesting data on the awareness of Russians, depending on the region of the Russian Federation.
Central region - 80% of its residents are aware of the direct selling method.
The southern region - 85%, the Ural - 85%, the Siberian - 89%, the Far East - 88%, then the North-West region - 76% follows, and finally, the Volga region - 71% completely lags the list, to which refers to my native Nizhny Novgorod :(.
Belonging to the sex, it turns out, also affects the purchasing power of our citizens: women more often than men purchase goods from distributors (71% versus 20%). In general, those who purchase this or that product through distributors are most often people with an average level of family income, whose average cost of one purchase is 1,500 rubles. (86%).
For 31% of consumers, the purchase price ranges from 500 to 1,500 rubles. 29% make a one-time purchase in the amount of 300-500 rubles., 26% of consumers - at a cost of less than 300 rubles.
Purchase from 1500 to 3000 rubles. 6% are ready to make, goods, the value of which is more than 3,000 rubles, are purchased by 2% of buyers.
Among the positive aspects of the direct sales method, Russians note: delivery to a convenient place and time (30% of respondents), time savings / opportunity to order products through the catalog (29%), lower prices and the possibility of discounts (24% of respondents).
Of the other positive aspects, respondents noted that they are attracted to the direct selling method:
13% - more product information / distributor consultation
12% - individual approach
11% - the opportunity to try the goods before purchase
11% - wide range
7% - high quality products
4% - meet new people / chat
A fairly large group of respondents (18%) do not see any positive aspects in the direct selling method.
Now let's see what people in direct sales do NOT like:
37% - sellers' importunity, imposing unnecessary goods
22% - no guarantee of product quality
20% - you need to wait for the order, sometimes there is no necessary product
17% - distrust of sellers and product quality
However, by and large, 66% of Russians are positive about distributors, 60% are positive about products offered by representatives.
So, I hope that the statistics I have provided will help you to take a more objective look at the direct selling method and, as a result, will help you better navigate your business with Mary Kay.
And I traditionally wish you success! See you.
The material used is articles published in the official publication of the Mary Kay Company - the Applause magazine for October 2009, June, July-August 2010.
By tradition, dessert photo: presentation of Mary Kay products. USA
Extra earnings with Mary Kay
When we have the main work, the sale of cosmetics to friends or casual acquaintances at the recommended price, and becomes the additional income that we expect. But you must admit that not every girl will want to buy cosmetics at the recommended prices, when this can be done 40% cheaper. So it turns out that the main customers who buy cosmetics at the recommended price are men.
Promote among men an interest in the men's collection, leave your business cards, give gifts to superiors, offer probes.
Single men with age do not stop caring for women, they are even more worried about their appearance, and the anti-aging system of Mary Kay will be just in time to remove excess wrinkles from the face. But from whom they learn about such wonderful anti-aging system tools, if not from a consultant.
For additional income, in order to find a Mary Kay client, passive methods will help us - the Mary Kay emblem and logo on clothes, accessories and handbags. This method does not work often, but the fact that it helps to find a client or a new consultant is indisputable.
On vacation, at work or among acquaintances, everywhere, the Mary Kay emblem and logo are of interest to others, and a conversation on this topic will be useful, but just do not rush things and do not try to impose cosmetics until you are asked about it.
Mary Kay business
To create a business with Mary Kay cosmetics is already a more serious and responsible event, which will require not only investments, but also personal time and effort.
Among the mistakes of consultants who decided to make money on cosmetics, Mary Kay, was the imposition of their services. Excessive zeal to sell or “boil” cosmetics causes severe irritation and negativity to Mary Kay cosmetics. It will be useful to publicly accessible advertising methods that have long been known to all, and which are used by most entrepreneurs:
- advertising in the mailbox,
- posting announcements on the boards near the front door,
- distribution of advertising booklets near the metro,
- SMS mailing advertising on the phone,
- Creation of personal blogs and pages in the social. networks
- creating a personal consultant website,
- Internet advertising,
- Leave your business cards wherever you buy something, in stores or travel agencies,
- and of course, all those passive methods that we use to search for additional income.
Regarding advertising in the mailbox or ads on the boards near the front door. My husband and I, on such an advertisement, called repairmen for the refrigerator, ordered pizza at home, went to the opening of a new store, ordered a truck for transporting furniture. There isn’t much to remember now, but if you are accessing such advertising yourself, then why not take advantage of it yourself.
It makes no sense to sort out all advertising methods, because under different conditions they work in different ways, and only on personal experience it can be said what works and what doesn’t.
As they say, the most difficult thing is to start, but without starting it is impossible to say that it does not bring results. Create a Mary Kay business plan, taking into account advertising costs, and achieve the creation of a Mary Kay business group, this will be your first achievement in business with Mary Kay.
It should be noted that it is possible to develop a business with Mary Kay either in large cities, where a young generation of girls grow up every year, who will start using cosmetics, or in regions where the consultant Mary Kay has not yet set foot.
About Mary Kay’s online business
From personal experience I can say that the costs of creating a site and its advertising are not able to recoup the money invested in them. For me, the site of a consultant is more of a hobby or hobby that can bring emotional rewards and self-affirmation.
As already mentioned, the prices recommended by the company are not the most adequate, and few people are going to buy cosmetics at these prices, knowing that they can be bought cheaper. And the issue of concluding contracts with new consultants is even more complicated. Agree that there are few girls who trust their passport details to an outsider and unfamiliar consultant.
Basically, young consultants come to the site, they look for useful information that they could not find on the official site, because in addition to the slogans "About the free schedule" or "Everything is in your hands", it is very difficult to find the right one there. So you have to look for information on the Internet. The Mary Kay cosmetics website is not a way to grow a business with Mary Kay, and to a greater extent, it is a pleasant hobby.
A few wishes for success in business with Mary Kay
One of the main ways to attract new customers will always be your impeccable appearance. When employees at work will always see you as irresistible, and acquaintances will envy your appearance, then you will always have something to tell and offer, so that they can also look beautiful, like you.
Extensive product knowledge
Only a good knowledge of the products and a love of Mary Kay cosmetics will help in conducting master classes, namely in classrooms, presentations, and most of the orders take place. Some girls come to the choice of Mary Kay products and become consultants only after attending 3-5 presentations.
You should always have:
- Stylish business cards.
- A brochure or booklet with a general idea of Mary Xi cosmetics, leaflets or postcards with descriptions of popular categories, for the TimeWise Repair system its own leaflet, and for the Timewise system, its own.
- Accessory with Mary Kay logo, gloves, scarf or handbag.
Conducting workshops and presentations
Expand your circle of acquaintances by telling about yourself in an informal setting, invite you to home parties and your workshops. And always remember that you do not sell cosmetics, you care about the beauty, health and youth of the skin.
Availability of a mini warehouse
It is not worth the young consultant to put increased obligations for himself and to buy products in the hope of an early business development with Mary Kay. This must be done when you have regular customers, and until then use the help of the senior group. The eldest group, this is your best friend and mentor in this business. She is interested in this, and if she has a mini-warehouse, she can always borrow the cosmetics that she has in stock until your order is delivered.
When you have regular customers and have your own business group, then having a mini-warehouse will give good advantages. So you will have the opportunity to quickly serve customers, and this indicates the quality of service, increases trust and increases orders, and you will not experience a shortage of products, which always appears before the next price increase in the company.