Are All Our Costs Increasing at Once???

[chefjwr]

There are so many price increases coming at once---website, catalogs, postage, door prizes and now Conferece for next year? Anything else? How much does all this increase the cost of doing business for this next year? Can someone do the math?

 

[Kathytnt]

Maybe we will get a higher commision rate to be announced - LOL! I am so silly

 

[pampchefrhondab]

I was thinking the same thing Julie!

 

[janetupnorth]

Maybe we will get a higher commision rate to be announced - LOL! I am so silly

Hey, LIVE YOUR DREAMS! They asked in the Dream Room what your Dream was - why can't it be higher commission???

 

[ljeffries]

I was kind of freaked about the website, but if you break it down, it is such a cheap monthly charge. Catalogs are still less than 50 cents each. Our commission is good, and our host incentives are incredible. I figure less than $100-$150 a year in added cost.

 

[janetupnorth]

There are so many price increases coming at once---website, catalogs, postage, door prizes and now Conferece for next year? Anything else? How much does all this increase the cost of doing business for this next year? Can someone do the math?

I would but too many variables for each person - I have a headache thinking about it!

 

[chefann]

Unfortunately, most of the increases are probably beyond HO's control. Everything costs more, everyplace.

 

[chefjwr]

"Our commission is good"? I would appreciate a slightly higher commission. It would be nice to have an increase and it would help with recruiting. I really put in a lot of hours and I am not sure the commission rate compensates me well. Maybe I will become more efficient as I go along.

 

[BethCooks4U]

They could have raised the shipping cost for our customers again but chose not to. I am sure that they keep costs down as much and as long as they can.

 

[chefjwr]

Yes, a shipping cost increase would be a tragedy for us.

 

[The_Kitchen_Guy]

Unfortunately, most of the increases are probably beyond HO's control. Everything costs more, everyplace.

Wait'll you go to buy a dozen ears of corn.

 

[KellyTheChef]

When you compare PC with other DS companies....

Our commission is good- they may LOOK like they get paid more, but most have to pay for host benefits, get their commission adjusted on returns, etc. It boils down to we have a nice commission structure that gets EVEN BETTER as a Director or above! (My director always notes on our monthly newsletter what her pay would have been at a consultant level and what her actual commission is...it's almost DOUBLE usually!)

Our paperwork is VERY reasonable in cost! I forget what the numbers are, but they actually mentioned some other DS companies at conference and what their catalogs cost...ours were cheaper!

We don't have to pay a yearly fee to accept credit cards! (and you know folks spend more on a cc so this helps our average sale go up!)

We don't keep inventory!

We get a TEN PERCENT increase in pay once we hit $15,000 in sales. Now, before anyone FREAKS out at me.....I know it's not 10% extra commission...it's an extra 2% commission. But, when thinking about it in comparison to "normal" jobs we make a minimum of 20% to start off with and then move up to a minimum of 22%. 10% of 20 is 2....therefore....10% raise. Most folks don't work on commission, so they understand the 10% figure better and it is more of comparing apples to apples at that point. I really hope I haven't confused you all! We have had this conversation on here about this before and sometimes it really doesn't make sense at first.

Anyhow, I know it stinks that these price changes are all coming down at the same time, but honestly...with everything else going up, HO is going to HAVE to pass some of that onto us!

JMHO

 

[BethCooks4U]

When you compare PC with other DS companies....

Our commission is good- they may LOOK like they get paid more, but most have to pay for host benefits, get their commission adjusted on returns, etc. It boils down to we have a nice commission structure that gets EVEN BETTER as a Director or above! (My director always notes on our monthly newsletter what her pay would have been at a consultant level and what her actual commission is...it's almost DOUBLE usually!)

Our paperwork is VERY reasonable in cost! I forget what the numbers are, but they actually mentioned some other DS companies at conference and what their catalogs cost...ours were cheaper!

We don't have to pay a yearly fee to accept credit cards! (and you know folks spend more on a cc so this helps our average sale go up!)

We don't keep inventory!

We get a TEN PERCENT increase in pay once we hit $15,000 in sales. Now, before anyone FREAKS out at me.....I know it's not 10% extra commission...it's an extra 2% commission. But, when thinking about it in comparison to "normal" jobs we make a minimum of 20% to start off with and then move up to a minimum of 22%. 10% of 20 is 2....therefore....10% raise. Most folks don't work on commission, so they understand the 10% figure better and it is more of comparing apples to apples at that point. I really hope I haven't confused you all! We have had this conversation on here about this before and sometimes it really doesn't make sense at first.

Anyhow, I know it stinks that these price changes are all coming down at the same time, but honestly...with everything else going up, HO is going to HAVE to pass some of that onto us!

JMHO

Thanks! That's a great way to look at it! I hadn't thought of it that way!

 

[KellyTheChef]

Thanks! That's a great way to look at it! I hadn't thought of it that way!

Since most people aren't used to making commission, it makes more sense to "talk their language" when discussing our "raise" at $15,000. Most people recently (around here anyway) are getting anywhere from 3%-8% as a normal raise. So, that goes over big!

BTW, those of you who know me, know that I am not telling folks this as a way to TRICK them...only to compare apples to apples.

 

[dannyzmom]

Very good explanation Kelly!
Look around us - postage rates...up, gas rates...up, electric rates...up. Of course PC has no choice but to raise the prices on things...their own costs are rising as well.

 

[Jilleysue]

Ms. Positive Carolyn...I just love you. YOU ARE ABSOLUTELY RIGHT! PC IS THE BEST!!

 

[Teresa Lynn]

We have a fabulous commission rate.... if you want a bigger paycheck add a catalog show.
When I started years ago our shipping was $2.00 to see it only be $4.00 13 years later is great.

I think the prices on our paperwork is reasonable too. My catalogs are my best "business card"

I don't want to "earn" more if it means I must deliver the products or pay a portion of the freebies or discounts my hosts receive. In June I had 82 customers at my shows, that would have cost a fortune in deliveries.

Our HOSTS don't incur a shipping cost regardless of their show total.... Ever had a Longaberger party??

We don't have a "renewal" fee either to remain a consultant.

Thank you Doris!!

 

[dannyzmom]

We have a fabulous commission rate.... if you want a bigger paycheck add a catalog show.
When I started years ago our shipping was $2.00 to see it only be $4.00 13 years later is great.

I think the prices on our paperwork is reasonable too. My catalogs are my best "business card"

I don't want to "earn" more if it means I must deliver the products or pay a portion of the freebies or discounts my hosts receive. In June I had 82 customers at my shows, that would have cost a fortune in deliveries.

Our HOSTS don't incur a shipping cost regardless of their show total.... Ever had a Longaberger party??

We don't have a "renewal" fee either to remain a consultant.

Thank you Doris!!

AMEN SISTAH!!!!!

 

[chef_kimmo]

Very nice way of putting it. I take advantage of paying for my website for the year because that makes it cheaper, buy catalogs by the 100 because it is cheaper (and besides I challenge myself to use them all up before the end of the season.)

Looking at it from the perspective of only a $2.00 increase in 13 years is a pretty good thing. I think our shipping rate is NOT that high in comparison to some companies charging per item. Or what about passing all the costs on to their consultants.

Well, I really don't have much else to say because Kelly, Teresa Lynn and all the others have said it so well. Thank you Doris and HO for trying to keep our costs down. ....

Of course, don't get me wrong - - I would always love to earn more money so I guess I will step up to the plate to get it until I make Director!

 

[Paula R. Lewis]

Another "perk" of our company, compared to at least one other direct selling company....when we do promote to a higher level, we have to sell less in order to earn trips. I know of at least one other company that requires you to sell MORE!! (Makes no sense to me, but it sure makes PC look better!!)


Blessings,
Paula

 

[Cookingwithmichelle]

a good comparisionI just hosted a Premier Designs show. I earned $330 in free jewelry on a $400show. That's huge! BUT- I had to pay tax on my free items and pay $4.00 in shipping. The guests only had to pay $2.50 in shipping. I couldn't believe how much I ended up spending on my "free" jewelry. So the consultant and I sat down and figured out the actual commision after the hostess benefits she had to pay. She made about $20 more in commission than I would have on a $400 show, but she arrived at my house at 5:15 PM for a 7:00 show and didn't leave until close to 10:00. I'm never at a host's house that long. Her set up and take down time was WAY longer. I thought that was interesting. Also she tells everyone that you make 10% on your downline. They leave out the fact that it is 10% of their commission, not sales!

 

[heather9892]

i totally agree on pc's costs
i have done many different ds business' and i have to say this is one of the best!

paperwork cost is cheap
home interiors was my latest past life and their catalogues change quarterly cost a fortune $18 for 15 no bulk buying and you also have to buy monthly catalogues with new products

our shipping is great!!!! think if you took a stone to the post office to have it shipped how much would it cost? i recently hosted an undercoverwear party and they charge $7 shipping for lingerie! and you have to pay taxes and shipping on free stuff, my "free" cost me over $30

it would be nice if our commission was higher but you know exactly what your making and there is no surprises Home Interiors was 45% but it was difficult to sell and that figure kept holding me back from signing with pc until someone said to me 45% of 0=0, i made more my first month with pc then i had the previous year with HI

just my 2 cents
sorry for the long post

 

[heat123]

I just love to hear comparision of other companies!

 

[raebates]

Yes, paying more is a pain in the patootie. Break it down, though.

My personal website will be $8/month. I know companies that charge over $50/month.

Our catalogs will be $0.45 each (for 100). They are good for six months at a time, and we get 25 free at the start of the season.

I don't have the door prize prices right in front of me, but I'm sure they're still a great deal. Plus, unlike some companies, you can choose which (if any) to give away.


Everything around me is going up in price. Frankly, I think PC does a pretty good job of keeping price increases to a minimum.

 

[ljeffries]

it would be nice if our commission was higher but you know exactly what your making and there is no surprises Home Interiors was 45% but it was difficult to sell and that figure kept holding me back from signing with pc until someone said to me 45% of 0=0, i made more my first month with pc then i had the previous year with HI

Great story! I have a friend who sells a beauti line. Have been trying to recruit her for a while - but their commission rate is much higher. I am so going to use this on her, because her sales are so low there. PLUS they do have to carry some inventory. Her 'kit' to do specialty shows was upward of $400.

 

[heather9892]

Great story! I have a friend who sells a beauti line. Have been trying to recruit her for a while - but their commission rate is much higher. I am so going to use this on her, because her sales are so low there. PLUS they do have to carry some inventory. Her 'kit' to do specialty shows was upward of $400.

lamar
i forgot to mention that we also had to pay our hostess benefits out of that 45%

tell you friend just to try it for the 4 parties thats all i did in my first month and 2 were $200 catalogues parties, yet sold close to $2500

good luck

 

[krzymomof4]

Maybe it is the pessimist in me, but I am really going to have to reconfigure how I run my business because of all the price increases. Don't get me wrong, PC is an AWESOME company and I love my job. I just don't make much money at it. I always took the old addage "It takes money to make money", so about 70% of my commission has went back into my business. I send out invites for hosts, offer extra incentives, and offer free shows to throw them over the edge if they are wavering about hosting. I am going to have to make a plan of action. I really want to make this business work. I have been at it for 3 years and on paper it looks like a hobby to get me out of the house, not a source of income. Sorry for the long post. Please don't slam me, I am just putting my thoughts out there.

 

[chefann]

I send out invites for hosts, offer extra incentives, and offer free shows to throw them over the edge if they are wavering about hosting.

I'm in the same boat. What I'm making a conscious effort to do is not offer additional incentives to hosts unless I really need the bookings, and then I'm going to put a condition on it. Like, "free show ingredients if your show hits $400" or "free bamboo spoons when you purchase a SET of cookware." In the past I've offered free ingredients or other free products, and not only did I encounter hosts who were not invested in their shows (and therefore didn't have good ones), but people start expecting those little add-ons all the time. Our host program is so fantastic that we really don't need to add anything to it.

 

[BethCooks4U]

On paper my business doesn't make much money either (I "made" less than $1000 last year after deductions of expenses) but I pay my car payment every month, bought a new computer, paid for several weekend trips away and vacation, of course, all business expenses, and other things.

Keep track of everything and you will probably see that you actually are contributing with your PC income.

 

[pamperedgirl3]

On paper my business doesn't make much money either (I "made" less than $1000 last year after deductions of expenses) but I pay my car payment every month, bought a new computer, paid for several weekend trips away and vacation, of course, all business expenses, and other things.

Keep track of everything and you will probably see that you actually are contributing with your PC income.

It is hard with tax write-offs to see how much you really make! I technically "lost" money last year with PC. But I also was able to feed my family based on some of those tax write-offs when I try out new recipes!

 

[finley1991]

PC offers an AMAZING host program!!!! DON'T OFFER INCENTIVES!!!! If the free product and host special isn't enough, they most likely won't book anyway. Offering incentives shows desperation. We work hard for our $$$$ so keep it!!!! Plus, once you start offering incentives, it's hard to stop because your customers expect it. Work with what PC offers. You will see the $$ come in.

And there is no requirement to mail the invitations. Consultants do this to cut down on their cancellations. Since I started sending the invites 3 years ago, I've had 2 shows cancel. But I knew they were cancelled at least 2 weeks prior because I didn't have a guest list. I wasn't stressing the day of the show "wondering" if it was going to happen. As a side note, hosts don't even get a host packet from me until I get their guest list. What's the point? No guest list... no show... no need for host packet. Plus, when they book, I want their focus to be ONLY on their guest list. Once that's done, we plan a great party for her.

One last thing in comparing other DS companies... I have a friend who sells a jewelry line... her minimum sales EACH MONTH to stay active is $1500. YIKES!

 

[Teresa Lynn]

My director has always told us ( only in the past few years have we offered any monthly specials to our hosts or guests) "I wouldn't book with a consultant who has to offer incentives when PC is SO GENEROUS with the host program. That gives off the I"M DESPERATE vibes!!!"

I have been sending my invites for nearly 7 years & see a big difference in show attendance and sales.
I do not provide the food for shows When I make my host coaching call I tell her what I want exactly & why I need this over this & they purchase the right ingrediants. I want to make my job look easy!!

 

[pamperedgirl3]

I don't offer incentives anymore either. I did when I first started, but realized that I got more bookings, etc., when I didn't! I do send out the invites for the host (I like knowing that they were sent, how many, when they were sent, etc.) & I buy the groceries but the host reimburses me. I do offer free food if the host has $200 in outside orders before the show or two bookings before the show.

Question for those of you who don't give out the host packet until you get the guest list. Does that mean you mail the host packets every time? I would rather give them out at the show because I save the $4-5 to mail them.

 

[heather9892]

i have yet to mail my invites with pc but i honestly believe this is the best way, to try and cover the costs i will be offering a "twoonie draw" it will cost a twoonie and unless everyone in attendance participates it cant be done
it will be for any discontinued product like i got in the surprise boxes at conference
worth a try

 

[ChefBeckyD]

I don't offer incentives anymore either. I did when I first started, but realized that I got more bookings, etc., when I didn't! I do send out the invites for the host (I like knowing that they were sent, how many, when they were sent, etc.) & I buy the groceries but the host reimburses me. I do offer free food if the host has $200 in outside orders before the show or two bookings before the show.

Question for those of you who don't give out the host packet until you get the guest list. Does that mean you mail the host packets every time? I would rather give them out at the show because I save the $4-5 to mail them.

I too have discovered that my bookings are the same - no matter if I offer an extra incentive or not. I used to provide the food - but now only provide the ingredients that are more obscure or would be something the host would have to buy a whole bottle of for 1 tablespoon for the recipe. (like the sesame oil being talked about right now)

And I agree about giving out host packets at shows - it's cheaper for me in the long run to hand out the packet at the show than to mail it later at $4.05 a pop! (Plus - mailing them is more work on my part - and I can go over the host packet with them face to face)

 

[ChefBeckyD]

i have yet to mail my invites with pc but i honestly believe this is the best way, to try and cover the costs i will be offering a "twoonie draw" it will cost a twoonie and unless everyone in attendance participates it cant be done
it will be for any discontinued product like i got in the surprise boxes at conference
worth a try

What's a "twoonie"?

 

[Teresa Lynn]

I stopped giving a host packet at my shows when I started mailing invites.

I either deliver it to the host or mail it. priority mailers are free and I keep the correct postage on hand. Since our shipping is so quick sometimes I give it to the host to include with the guest order.

I do this for a couple of reasons.

1. The next day I can call potential host and confirm the date and make sure she is serious about hosting and wasn't caught up in the moment and will actually keep the packet I give her.

2. I know her intentions she's had time to make her guest list Does she have 40 friends to ask or will she be sending the invitations.

3. I can fill out the show planner etc in the packet (& make the OOF, and guest/host special I need) I have saved lots of copies this way. I never knew before a show which month will be booked and I had many copies wasted.

 

[crystalscookingnow]

......
Question for those of you who don't give out the host packet until you get the guest list. Does that mean you mail the host packets every time? I would rather give them out at the show because I save the $4-5 to mail them.

If the show doesn't happen, though, you're not really saving the $4-5. You've got catalogs, order forms (of some sort), a show planner, possibly a folder (I use one, some don't), a guest list form, potentially more depending if you put any fliers. You've also got the cost of whatever ink you use & labels or stamping for your catalogs.

Just another way to look at the "cost" of mailing after you receive the guest list vs. handing out the packet at booking.

 

[chefann]

What's a "twoonie"?

It's a Canadian $2 coin. Pronounced "toonie". The $1 coin has a loon on it, and is known as a "Loonie."

This has been another useless fact from the brain of Ann.

 

[crystalscookingnow]

Becky - she's from Canada. They two dollar coins - 'twoonies'. There are also one dollar coins, if i haven't forgotten already called loonies.

 

[crystalscookingnow]

Uh-oh.... I have a useless fact in my brain. Big surprise there.... LOL!!

 

[ChefBeckyD]

If the show doesn't happen, though, you're not really saving the $4-5. You've got catalogs, order forms (of some sort), a show planner, possibly a folder (I use one, some don't), a guest list form, potentially more depending if you put any fliers. You've also got the cost of whatever ink you use & labels or stamping for your catalogs.

Just another way to look at the "cost" of mailing after you receive the guest list vs. handing out the packet at booking.

Yeah - but I have a whole lot less into my host folder!
2 Catalogs ($.90)
5 OOF
5 postcard invites
Folder ($.10 usually from Back to School sales)
Guest List sheet
Show Planner (free or minimal cost)
Cover Letter
50 Guests Flyer
Opportunity Brochure

Probably $2.00 total - and not many of them cancel.......if I mailed all of them, I would have the cost of the Host Folder PLUS the cost of mailing!

 

[Teresa Lynn]

Becky,
Just curious do you end up having to send them more catalogs?
I give mine 10 OOF (I use the 5-15- 5 rule) so I want them to have the 10 OOF.
I include 6-8 catalogs so they can gather many orders.

 

[ChefBeckyD]

Becky,
Just curious do you end up having to send them more catalogs?
I give mine 10 OOF (I use the 5-15- 5 rule) so I want them to have the 10 OOF.
I include 6-8 catalogs so they can gather many orders.

No - I don't usually send more - They keep the one they have from the show they are attending - I tell them that is their copy. I encourage them to have people view the catalog online @ my website - especially those who are a distance away. I tell them this will help them out - by not having to chase down catalogs or remember who had it last. I show them the OOF, and tell them to be sure and make copies as needed - and then I will also email a copy of the OOF to them if they need to print more.
At the end of the evening at their show - when we are reviewing orders - I always ask if they need more catalogs/oof's and give them more then if needed. It seems to work - I also coach for the 5-15-5 rule, and most of my hosts get $200 or more in outside orders.

 

[chefjwr]

I do give my hostess packs out at the party. I have not had any cancellations. I always include the "A Successful Party Has:" Flyer that encourages the 5-8, 15, 5-8 strategy.

 

[MomToEli]

Yes, paying more is a pain in the patootie. Break it down, though.

My personal website will be $8/month. I know companies that charge over $50/month.

Our catalogs will be $0.45 each (for 100). They are good for six months at a time, and we get 25 free at the start of the season.

I don't have the door prize prices right in front of me, but I'm sure they're still a great deal. Plus, unlike some companies, you can choose which (if any) to give away.


Everything around me is going up in price. Frankly, I think PC does a pretty good job of keeping price increases to a minimum.

I so agree with everything you are saying. I know they had to increase the supply items all at once because of printing issues (the order forms). The website price won't effect me until I renew (MAN do I wish I'd gone ahead and signed up for 1 yr instead of 6 months!), and conference - I appreciate knowing a year ahead of time - they could have waited until next Spring to tell us. So, while it feels like a lot to swallow at once, we aren't really having to all at once. We just know ahead of time ...

 

[Jules711]

It's funny, I can't even remember what this thread started as...oh yeah costs! Lots of topics in that area and all great info! I have a friend who just started Home & Gardens and they have NO s/h. She is very proud of that. However, hello! It's just IN each product. I love that ours is flat. It doesn't seem great to the person spending $10, but to the person spending $70, it's REALLY great!

As for catalogs, it's a bummer that they are going up 6 cents each, but I know some are about twice that!

I'm just glad that s/h is staying the same. People would rather pay more for products, than s/h. You pick products and know how much they are and then get an extra charge. Ick!

And how thankful am I that credit cards are free and I don't pay host benefits! I have a hobbyist friend in CM and she doesn't even know or tell people about the host specials b/c SHE has to buy them so they aren't as exciting to her.

Final note...I am guilty of overgiving to hosts. However, I heard on a tele-class that it actually cheapens the PC benefits. After all, they must not be very good if we are offering MORE. People don't really get how great the benefits are until they are picking out products. You can tell them over and over again and they still forget they get SO much. I always stress tax on what they pay and no s/h. I just recently had a host that does another DS and know that you pay s/h AND tax on everything.

 

[heather9892]

What's a "twoonie"?

thanks ann and crystal for answering

 

[krzymomof4]

My days of offering extras are now over. I usually only do that to push people into the dates I have left on my calendar. For example if I have the 27th open, I will offer a free mix n chop to a person that books that date.

 

[Teresa Lynn]

Leslie,
Doesn't that feel good???