Are All Our Costs Increasing at Once???

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Discussion Overview

The thread discusses recent price increases affecting various aspects of doing business as Pampered Chef consultants, including websites, catalogs, postage, and conference costs. Participants share their thoughts on how these changes impact their overall expenses and commission structures.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant expresses concern about multiple price increases occurring simultaneously and questions the overall impact on business costs.
  • Another participant humorously suggests that higher commission rates might be announced to offset the increases.
  • Several users mention that while the website costs may seem high, they are manageable when broken down monthly.
  • One participant identifies as a consultant and shares that they believe the commission structure is favorable compared to other direct selling companies.
  • Another participant notes that despite the increases, the company has chosen not to raise shipping costs for customers, which they appreciate.
  • Some participants express that the commission rates are good but would welcome increases to better reflect their efforts.
  • One participant highlights that the costs of paperwork and catalogs are reasonable compared to other companies.
  • Another participant shares their experience of managing costs effectively by purchasing catalogs in bulk.

Areas of Agreement / Disagreement

Views differ on the impact of the price increases, with some participants expressing concern while others feel that the overall commission structure remains favorable. No clear consensus emerges regarding the necessity or implications of the price changes.

Contextual Notes

Participants share personal experiences and perspectives on the financial aspects of being a consultant, focusing on the balance between costs and commission structures.

Who May Find This Useful

Consultants looking to understand the financial implications of recent price changes and those interested in comparing commission structures with other direct selling companies may find this discussion relevant.

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!
 
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!!
 
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 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
 
pamperedgirl3 said:
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)
 
heather9892 said:
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"?
 
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.
 
pamperedgirl3 said:
......
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.
 
ChefBeckyD said:
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. :)
 
Becky - she's from Canada. They two dollar coins - 'twoonies'. There are also one dollar coins, if i haven't forgotten already called loonies.
 
Uh-oh.... I have a useless fact in my brain. Big surprise there.... LOL!!
 
crystalscookingnow said:
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!
 
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.
 
Teresa Lynn said:
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.
 
  • Thread starter
  • #45
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.
 
raebates said:
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 ...
 
It's funny, I can't even remember what this thread started as...oh yeah costs! :D 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.
 
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.
 
Leslie,
Doesn't that feel good???
 
I am trying to come out of the desperation phase I have been in for awhile now. Baby steps I guess.
 
krzymomof4 said:
I am trying to come out of the desperation phase I have been in for awhile now. Baby steps I guess.

I'm with you! I have been in that phase too but am going to stop. I agree that our host program is great, but if I'm offering extra incentives, then I'm not really projecting that, am I???? I need to believe in the program for others to really want it!!
 
The only time I have offered incentives is from drawings from fairs such as a Free show to the winner. I have to say though if I am really needing bookings I will have more than one "winner". Other than that I seldom offer more and when I have no one has booked.
 
ChefBeckyD said:
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!

My point too! I only put in 3 catalogs (no, the host usually doesn't need more), 5 OOF, the folder (usually $.07-$.10), guest list sheet, show planner (free), cover letter & opp. brochure. So it is cheaper to hand them out than to mail them. Plus I've only had one show I can think of that cancelled completely after I handed out the folder that I never got back. All the others usually just postponed their shows if anything.
 
the other part of offering too much, when you are trying to recruit they think they have to do all this too.

I had a recent host during the show keep telling guests the guest who spent the most would get the dozen red roses on her coffee table.
Every guest that came got a gift, the first person to arrive got a gift, the people who brought a friend got a gift, the person who booked got a gift. while I was taking orders she would announce who had spent the most
It was very annoying to me, embarrassing to her guests and made my giveaways seem cheap. She wanted to sell, I told her upfront if she wanted bookings and to make $$ she couldn't do the roses etc. She was miffed and
told me I was demanding. Whatever!!

I just explained how our program worked and that bookings were the lifeline of our business & if people were expecting all the extras it might be hard for her to do PC.
 
finley1991 said:
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!

Yikes! Which company is that? My mom just signed with a jewelry company and it's pretty expensive, so I wonder if that's it.
 
Premier is $1500 plus they have to pay like $300 each year to remain a consultant.
 
BethCooks4U said:
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.
That is so me too Beth, making cc card payments, several weekender trips for me and DH or just myself and a family trip to Disneyland this year and misc. things then showing not a whole lot of income after taxes:rolleyes:
 

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