Ethics: Tell the Host and Lower My Commission?

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Discussion Overview

This thread explores the ethical considerations surrounding the practice of adjusting host orders to help them reach higher sales levels, potentially impacting the consultant's commission. Participants share their personal experiences and thoughts on whether to disclose such adjustments to hosts.

Discussion Character

  • Exploratory
  • Opinion-based
  • Anecdotal

Main Points Raised

  • One participant, identifying as a consultant, discusses adjusting a host's personal order to a guest order to help her reach a higher sales level, weighing the benefits against the loss of commission.
  • Another participant suggests that transparency with the host is important, noting that it demonstrates concern for the host's interests.
  • One consultant shares their experience of following their director's guidance to adjust orders, questioning the ethics of the practice.
  • Several users mention that they often discuss options with hosts to help them maximize their benefits, emphasizing the importance of customer satisfaction.
  • One participant expresses uncertainty about the ethical implications of their actions, reflecting on the complexities of their relationship with the host.
  • Another participant notes that they do not view the situation as an ethical problem, suggesting that the focus should be on the host's happiness.
  • One participant recounts a specific instance where they encouraged a host to place a small order to unlock additional benefits, prioritizing the host's satisfaction over their own commission.
  • Another participant reflects on their emotional state and personal challenges while considering the situation, indicating that external factors may influence their decision-making.

Areas of Agreement / Disagreement

Views differ among participants regarding the ethical implications of adjusting orders and whether to disclose such actions to hosts. No clear consensus emerges on the best approach.

Contextual Notes

Participants share varied experiences and perspectives, highlighting the personal nature of their interactions with hosts and the complexities involved in balancing business practices with customer relationships.

Who May Find This Useful

This discussion may be of interest to consultants navigating similar ethical dilemmas in their interactions with hosts and considering the impact of their decisions on both their commissions and customer satisfaction.

JAE
Messages
4,739
I have a question for you? I was trying to get my host a better deal, so on P3 I took some of her personal order out and turned it into a guest order. It brought her show total to $400 level instead of $300 level. It would save her $12.35, and it would lower my commissionable sales by about $14. I'd only be losing $3 of actual commission, maybe a little more if I get more sales in May. (Not likely.)

Do I tell my host or just let it go? I haven't brought it up to her at all, yet. What would you do?
 
I'd tell her.First, she'll see that it's a separate order when it arrives. If you don't tell her, it may look odd to her.Second, you've gone out of your way to help her out. Letting her know that is a smart business move. It shows that you are more concerned with her than with yourself. (BTW, there's no need to mention that it lowers your commission. To mention that would seem self-serving.)
 
My director had me do that in order to get a catty show up to the totals it needed. I had two instances where the hosts were the only people that ordered anything..not sure if it's legal, or right or moral, but I followed what my director told me to do.

HTH
 
I let my hosts do that all the time when they are that close and on lower shows. I explain it and give them the option. Some do it, some don't. I figure if they pick what is best for them, I have happier customers in the end. Usually ended up happening anyway when they booked off themselves for a future date so they already KNEW they could place a guest order too.
 
I'd talk to her about it and let her decide what she wants to do.
 
If it helps, I truly don't see this as an ethics problem. However when in doubt call Dr. Laura!
 
Just had this happen with a show. The host was $11 away from $400....I told her to go ahead and spend the $11 as a guest, because by doing so, she would be able to get the extra $25 in free product, and also, she had 2 big ticket items she wanted (family skillet, and SS bowl set), and then she would have 2 half price items. I didn't figure out how much commission I lost, but I know she was happy!
 
I always talk to my host about adding to their show to get to the next level. Sometimes it's even like $20-30 order to get more for free and half priced. They are usually willing to do so especially since it saves them money.

Don't worry so much about yourself, it's the connection with your customer to tell them how much you helped them to save. My stepmom wanted the cookware and because her show had $90 for free it was the same price to help her get it on the free and discounted or to get it at half off. I would have made more commission had I told her to get something else at half off but she was able to save more money and get more products that way.
 
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  • #9
Gosh, I didn't think I was worrying about myself, but maybe I'm sounding selfish.

I have spent a lot of time going back and forth with this host, not in a bad way, but it's taken a lot of time. She's rarely home when I call, I'm not here when she calls, she doesn't answer e-mail very often, and she lives an hour and a half away. So, bringing this up will also just complicate things. I was wondering if, ethically, I should tell her that she could save the money because now I know she can. I didn't have to figure it out, but I did. It's not like she couldn't figure it out if she really thought about it, though she probably wouldn't.

It may or may not be her fault that only 4 people showed up to her show even though she invited 40 people. So my commission is already being eaten into by gas money for 200 miles and postage for 40 stamps. I didn't get any bookings, either. She is spending $80+ on product outside of her 1/2 price item and April host special. I figured that she's spending the money anyway, so I'd just take a few minutes to see if it would save her money to order $42 ish at full price. It turned out that she would save the $12.

Earlier when I started this thread I wasn't in a bad mood. Now I come back here in a bad mood and read this while in a bad mood. I will tell you why. I just gave my son and his buddy $20 to go to the Tulip Time carnival. They both had a coupon for $3 off so I told them I wanted the $6 change. I gave ds my watch and said to be "here" at 3 pm. I was going to the park to the arts and craft show. Tons of traffic. Cars everywhere, so parking was a few blocks away. I finally get a spot, and my phone rings. My son is calling me from a police officer's phone to tell me he can't find the $20 I just gave him. So now, I am fuming mad and a bit touchy about my money and my time.

Anyway, thanks for your help. Still not sure what I'm going to do.
 
Ugh JAE! I hope he finds the money!!!!
 
JAE said:
Gosh, I didn't think I was worrying about myself, but maybe I'm sounding selfish.

I have spent a lot of time going back and forth with this host, not in a bad way, but it's taken a lot of time. She's rarely home when I call, I'm not here when she calls, she doesn't answer e-mail very often, and she lives an hour and a half away. So, bringing this up will also just complicate things. I was wondering if, ethically, I should tell her that she could save the money because now I know she can. I didn't have to figure it out, but I did. It's not like she couldn't figure it out if she really thought about it, though she probably wouldn't.

It may or may not be her fault that only 4 people showed up to her show even though she invited 40 people. So my commission is already being eaten into by gas money for 200 miles and postage for 40 stamps. I didn't get any bookings, either. She is spending $80+ on product outside of her 1/2 price item and April host special. I figured that she's spending the money anyway, so I'd just take a few minutes to see if it would save her money to order $42 ish at full price. It turned out that she would save the $12.

Earlier when I started this thread I wasn't in a bad mood. Now I come back here in a bad mood and read this while in a bad mood. I will tell you why. I just gave my son and his buddy $20 to go to the Tulip Time carnival. They both had a coupon for $3 off so I told them I wanted the $6 change. I gave ds my watch and said to be "here" at 3 pm. I was going to the park to the arts and craft show. Tons of traffic. Cars everywhere, so parking was a few blocks away. I finally get a spot, and my phone rings. My son is calling me from a police officer's phone to tell me he can't find the $20 I just gave him. So now, I am fuming mad and a bit touchy about my money and my time.

Anyway, thanks for your help. Still not sure what I'm going to do.
Please don't take my thread the wrong way!!!!!!!!!!!!!! I wasn't meaning that you were trying to be selfish, if it was meaning adding a $40 order to the show, I probably wouldn't have thought of it either. It's up to you, the host will be happy with what ever she gets.

I hope your son finds his money!
 
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  • #12
wadesgirl said:
Please don't take my thread the wrong way!!!!!!!!!!!!!! I wasn't meaning that you were trying to be selfish, if it was meaning adding a $40 order to the show, I probably wouldn't have thought of it either. It's up to you, the host will be happy with what ever she gets.

I hope your son finds his money!

I'm pretty sure MY money blue down the street when ds got out of the car. I'm guessing he set it in his lap to put the watch on his wrist. Hopefully, someone finds it who really needed it. Maybe they can decide to do something fun that they weren't going to be able to afford during this crazy festival. Me, on the other hand, I have to figure out how to get over this and not over-punish ds. Children are a blessing from the Lord. Children are a blessing from the Lord. Children are a blessing from the Lord. I love my son. I love my son.....
 
Jae, I often told my son that I would survive his adolescence. He might not, but I would. He often told me that "adolescent" sounds like a bad word. I told him it is.The good news is that he survived. He has also matured. I've been told that grandchildren are God's way of rewarding you for not killing your teenagers. I'm looking forward to checking out that theory someday.
 
JAE said:
I'm pretty sure MY money blue down the street when ds got out of the car. I'm guessing he set it in his lap to put the watch on his wrist. Hopefully, someone finds it who really needed it. Maybe they can decide to do something fun that they weren't going to be able to afford during this crazy festival. Me, on the other hand, I have to figure out how to get over this and not over-punish ds. Children are a blessing from the Lord. Children are a blessing from the Lord. Children are a blessing from the Lord. I love my son. I love my son.....
Yes, your money!

Love your son, he is one of God's greatest gifts to you! Things happen for a reason that we just never know. My sister told me once about seeing a homeless guy digging through the garbage cans at the gas station. The guy in the SUV next to her got out the cans from his car and gave them to the guy. My sister said that something in her told her to give the guy a little more. Even though she didn't have much money in her pocket at that time, she gave him the $20 she did have and went on her way. She stopped at the grocery store and said that some guy whipped into a spot in front of her requiring her to drive further down the row and park alot further from the door with three children to take into the store. As soon as she got out of her car, right there on the ground was $20. She said that felt that it had all happened for a reason and had given her a great feeling that day!

I know my story doesn't help in your situation but just remeber that there are alot bigger things out there to worry about!
 
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  • #15
raebates said:
I've been told that grandchildren are God's way of rewarding you for not killing your teenagers. I'm looking forward to checking out that theory someday.

That's a good one! This ds is sooo loveable but so aggravating. He gives me so much trouble, mostly not on purpose, yet he is truly a delightful child. (I don't really use that word "delightful" but it seems to fit.)
 
Too bad I had that show today - or I could have been there with you so you had someone to vent to in person!:o
 
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  • #17
ChefBeckyD said:
Too bad I had that show today - or I could have been there with you so you had someone to vent to in person!:o
Trust me when I say that you would not have wanted to listen to what I had to say after I hung up from him. Not only did he lose the $20, but Becky, you must know how bad the traffic is in Holland during Tulip Time. So I was fuming about how I had to drive back through all of that to get back to the carnival to pick them up, too.
 
JAE said:
Trust me when I say that you would not have wanted to listen to what I had to say after I hung up from him. Not only did he lose the $20, but Becky, you must know how bad the traffic is in Holland during Tulip Time. So I was fuming about how I had to drive back through all of that to get back to the carnival to pick them up, too.

I do know the traffic! We were at Menards in Holland last night (it's how we've been spending our Friday nights for the past month) because we didn't want to haul the trailer through that traffic at any other time this week!

Looks like the weather is going to be good for TT though. I'm still trying to figure out when we can make it over there for some fun!
 
As for your original question, I also do this quite a bit for my hosts although I usually give them the option to add an order under their spouses name or to tack it on to their mom or sisters order. The almost always bite. It is good Customer service.

If it was a long drive and sales were low I do not think I would eat the cost. I know it sucks but I would wait till you could talk to her again.
 

Frequently Asked Questions

What does it mean to "tell the host" in direct sales?

"Tell the host" refers to the practice of being transparent with the host about the commission structure and how it affects their earnings. In direct sales, hosts often receive rewards based on the sales generated during their party, and it's important for consultants to communicate how their commission might impact the host's benefits.

Is it ethical to lower my commission for the host's benefit?

Lowering your commission for the host's benefit can be seen as a generous act, but it’s essential to consider the long-term implications. While it may help the host earn more rewards in the short term, it could also undermine your own earnings and set a precedent that may not be sustainable in the future.

How should I communicate my commission structure to the host?

When discussing your commission structure with the host, be clear and honest. Explain how your commission is calculated and how it relates to the rewards they can earn. Providing this information upfront helps build trust and ensures that the host understands the financial aspects of the party.

What are the potential consequences of lowering my commission?

Lowering your commission can lead to reduced earnings for you as a consultant, which may affect your motivation and ability to sustain your business. Additionally, it may create unrealistic expectations for future parties, making it difficult to maintain a profitable business model.

How can I support my host without lowering my commission?

Instead of lowering your commission, consider offering additional support to your host through incentives, such as bonus products or exclusive offers for their guests. You can also provide them with marketing materials, tips for hosting a successful party, and encouragement to maximize their rewards without compromising your earnings.

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