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!