Mary Kay Money Pits

When you start at new franchise business like Mary Kay, money pits can be a problem. Selling Mary Kay cosmetics is a tough gig but if you are determined to take the "pink plunge" there are some things you should know about your new business. Many women have a level of success selling these products and to be one of them you have to mark smart decisions about your money.

Excitement is the hallmark of a successful "Mary Kay Lady" so it is easy to be excited about placing your first order and setting up your shop. However, you should know a few things before you place that first order. Here is a list of Mary Kay money pits that you should avoid if you want to stay out of the red.

Who's Profiting?

Your recruiter will make a profit on your order. Depending on her rank, your recruiter and her upline directors will earn a certain percentage on your entire Section 1 order. Section 1 products are not sales helpers like catalogs. Section 1 items are strictly wholesale products. An unscrupulous recruiter may encourage you to order more than you need to get a larger check for herself.

Free Products

Mary Kay Cosmetics offers free products to first time order takers. This first order is considered your "inventory order" and the company rewards you for placing large orders. The smallest "inventory order" available is $600. Unfortunately, there is such a large selection of products to choose from it is impossible to predict which items your customers will order.

Star Consultant

Every Mary Kay quarter, the company offers gifts to women who order certain amounts of product. Women who achieved these Star Consultant amounts earn prizes are often given public recognition. When you first join the company, you will likely be encouraged to become a Star Consultant. Be aware that the smallest Star Consultant order is $1800 plus tax. Most of the prizes you see can be purchased independently somewhere else without purchasing thousands of dollars worth of product that you may not sell.

Section 2

Besides the large line of cosmetics you can order at wholesale, there are some eye catching sales aids you can purchase. These Section 2 items like purchase incentive prizes, ribbons, pins, catalogs, order forms, and samples are all nice to have but a real money pit. Avoid ordering Section 2 items and resist the pressure you may feel to have the latest sample case or beauty coat. None of these items other than catalogs are necessary for making a sale.

Be aware of Mary Kay money pits when starting your Mary Kay business.