Mary Kay Small Business Struggling in Tough Economy

I am an Independent Beauty Consultant for major cosmetics economy, Mary Kay, and have been selling cosmetics and skincare since January 2005. Making the commitment to be a small business owner out of my home at 20 years of age, just over 4 years ago, was a tough decision. Although the financial commitment is minimal to begin my type of business, getting my name out to the general public was and continues to be a tough road.

Over the past 4 years, I have built a steady customer base that re-orders through my company, and I continue to get steady referrals. I have the option to step back from the business when my time demands lie elsewhere, and can pick up the pace when time allows. In attempting to increase my business over the past 6 months, I find that most of my customers are purchasing only the regular items, and nothing additional.

While age fighting skin care is primary to my business sales, as well as brand new cosmetics options, most of my customers have been purchasing only basic necessities such as cleanser, moisturizer and foundation. Extras such as special exfoliates, deep moisturizing, and cosmetics containers go on the back burner for customers these days.

My average order size has diminished from $50-$75 to $25-50 over the past two years. With the general economic decline, my customers are also waiting until they are completely out, or within a week of needing a product, before paying to replace their stock. These decreases in sales have greatly affected my business strategies. I now try and contact customers within a week of placing an order to minimize my shipping costs for myself, and my customers.

Discovering new leads for business has also become more tough in this struggling economy. By placing facial boxes in local businesses, where potential customers can enter to win a free makeover or gift certificate, my business has increased slightly. Most people are excited to win something free, but only take advantage of the free services I offer, rather than making an additional purchase of the products. It is good for them, but bad for me as a business woman.

In general, this declining economy has forced customers to abandon such splurges as age fighting skin care and cosmetics. These are some of the first items that customers cut from their monthly budget, opting to spend their money on daily necessities such as groceries, utilities, mortgages and auto payments.

As a small business owner working from my home to generate leads, it has become increasingly difficult to find customers willing to try my products, even for free. Most people are afraid of committing to a free facial for fear of feeling obligated to make a purchase.

Customers these days are keeping their wallets closed to anything except absolute necessities. Despite occasional splurges for holidays, birthdays and anniversaries, the cosmetics industry has greatly slowed over the past two years and I foresee a continuing decline over the next few years until something drastic changes.