1/2 as Much as They Want... Explain Please

[ChefMary412]

I have read a few times that some of you give the host 1/2 off as much as he/she wants when they reach $1000... can you explain how this does not cost you soo much? I keep thinking they would get 3 knife blocks, a few sets of cookware... and it would add up on the consultant end. It sounds like a cool idea though.

thanks!

 

[krahema]

I haven't offered this promotion, but have thought through it, after reading about it here. It sounds like the consultants that do offer it, typically offer it to hosts that reach at least $1,000 in sales. So, at that point, the host is receiving $215 in free product, 4 half-price items and everything else at 30% off. I'm guessing you would select their 4 highest-priced items as their half-price items (based on PC host rewards), and then anything else they order would already be at 30% off, so it would just be an additional 20% off that you would be offering them. So, for every $100 in product they choose (above & beyond their free & 4 half-price items), it would cost the consultant $20.

And, actually, after you factor in the commission you would earn on the $20 (since it counts towards your commissionable sales), it would really only cost you $16 or less (starting with just a 20% commission) per $100 in product.

Let's say you have a host that chooses an additional $1000 in product at 50% off (I'm thinking he/she would have to just about the entire catalog, but for arguements sake, let's assume). You would earn commission on $700 of the $1000 (they are already getting 30% off from PC). Let's assume a 25% commission, so you earn $175. You would pay $200 to get them the additional 20% off, so really, it is "costing" you $25. Sure, you "lose" the $175 commission, but I really don't find too many of my hosts purchasing at their discount - most just want their free, 1/2-price & host specials. So, I would look at it as a sale I wouldn't have otherwise made. And, now your commissionable sales for 1 show would be $1700, which could really help in a month like June during the sell-a-thon.

Maybe someone who has actually offered it in the past can just verify whether or not my thinking is correct. All of a sudden, it is seeming too good to be true - maybe I'm missing something?!?!

 

[Liquid Sky]

I have read a few times that some of you give the host 1/2 off as much as he/she wants when they reach $1000... can you explain how this does not cost you soo much? I keep thinking they would get 3 knife blocks, a few sets of cookware... and it would add up on the consultant end. It sounds like a cool idea though.

thanks!

At the $1000 level, the discount is 30%. The host pays 50% of the value but you put the products on as normal and it is marked 30% off. Then, after you figure the commission you'll make off of those products, it basically equals out (50% off). You don't make extra $$ off of it, and you don't lose either (when you factor in the commission) BUT it does count towards sales and points

 

[ChefMary412]

krahema
Thanks! I think that makes sense... and it sounds amazing! I think I will certainly offer it in June.. sounds great for SAT... since the host's extra discount (30%) in this case, would count towards commissionable sales. Sounds like it is a plan

 

[chefheidi2003]

I think I might offer it in June as well.

 

[mkcook]

How do you let the host know about this? Flyer? Email? or call? and how do you explain it? This is a great idea for June! I want to do it too - just need a little more coaching. Thanks!

 

[SueAdx]

I tell every host and remind them each time I am coaching them.

As a thank you to you.....WHEN (not if) your sales reach $1,000 I will give you 50% of the entire catalog. This is a great motivator for people especially if they are close.

 

[Melissa78]

Great idea however, just a reminder - you are paying up front before the commission comes through so make sure you're bank account is 'prepared' to foot the bill up front.

 

[MLinAZ]

I keep thinking they would get 3 knife blocks, a few sets of cookware... and it would add up on the consultant end. It sounds like a cool idea though.
QUOTE]

Those that do this could speak from experience but I would guess that most hosts wouldn't end up doing that because they still have to pay 50% too! So unless they have an extra $1000 sitting around to get multiple cookware sets and knife block sets, they probably wouldn't do that.

The other thing I've heard from consultants is that by the time hosts have selected $215 in free product and 4 50% items, there isn't always much else they want or can afford to get.

 

[millthayer]

I have done this alot in the past and most host's have never picked more than an additional 4-6 products..so its not a big deal. Only once did a host pick about 20 extra items, but they were all under $10., so it didnt even cost me more than $60 up front and she was so excited that I could do that and has been a repeat host from that! It is a very good motivator to get those $1000. shows.

 

[ChefMary412]

Those that do this could speak from experience but I would guess that most hosts wouldn't end up doing that because they still have to pay 50% too! So unless they have an extra $1000 sitting around to get multiple cookware sets and knife block sets, they probably wouldn't do that.

The other thing I've heard from consultants is that by the time hosts have selected $215 in free product and 4 50% items, there isn't always much else they want or can afford to get.

good point. I didn't really think of that.

 

[Grandmarita]

I've noticed, especially in this past year, that hostesses are opting for just the Free Products, and very little extra. It sounds like a risk free offer, that probably few will take you up on, in a way that would break the bank.