FAQs: Hosting Incentives, Discounts, and Shipping Policies

[rowan0907]

You guys have been so helpful, I have a few more questions..

Do you make commission on a host/hostess sale?

Are we allowed to offer a 10% discounts for guests?? (No, I'm not planning on giving that to all the guests, I just have an idea for an incentive..)

One last thing, shipping is a flat $3.25 for everyone, correct? And the items get shipped directly to the host/hostess?

Thanks again!!

 

[chefloriray]

Hi,
You make commission on their percentage off but not their Free or 1/2 price selections.

You can offer any percentage off you would like. It is your business, you just have to eat the discount. You can always tack it on at the end from the hosts discount so you are not out anything, plus you would make commission.

Yes $3.25 S&H for everyone...unless it is direct shipped to the guest. In September it is changing to $3.50.

HTH
Lori

 

[pamperedbecky]

You can offer whatever incentives you'd like in the form of discounts. When you enter the payment information for the guests, enter one payment for whatever discount you're giving as "consultant gift" then it's a business expense. Enter the next payment as however the guest is paying.

Yes, the $3.25 is a flat rate for shipping for everyone who's order is shipped to the host. If they want it shipped directly to them, they pay a little more in S&H. Be aware that the shipping rate is increasing to $3.50 and I think it's as of September 1st.

We get commission on certain parts of the host order. YOu can review the specifics in "Recipe for Success." Whatever they order at the 15-30% discount is commissionable. Obviously free products aren't commissionable. Half price items that the host choses aren't commissionable either. Don't ask me why. This is a point of contention for many consultants.

Hope that helped!

 

[pamperedbecky]

oops, once again we were responding at the same time!

 

[dawn424383]

We do not make commission on the hostess free products (obviously ) or the half price items. We do make commission on the balance they pay after their discount is applied on any additional products. And yes, we may offer discounts to guests as an incentive to help boost sales. We must "eat" that cost, though, so just make sure the incentive you are offering is worth it to you. This is your business to run as you wish, so you can make as much or as little profit as you choose. If it helps to boost sales or gain loyal costumers, it's always worth a little extra "out-of-pocket" expense, in my opinion. Also, on the payment info screen of PP, be sure to enter any of these extra expenses as "consultant gift". They are tax deductable! And to answer your last question, shipping is a flat rate of $3.25 if they are having the order shipped with the rest of the show (to the hostess). ***Please note, that on Sept. 1st, shipping does increase to $3.50*** If they wish to have it sent directly to them, shipping is higher. (Refer to the back of an order form for direct shipping charges).
I hope this is helpful.

 

[rowan0907]

One more question...My sister is trying to figure out what to buy me for my birthday... Is it possible to buy a gift certificate from me FOR me??

 

[cheesehead]

I understand that a half-off item is non-commissionable, but does it count in your total sales towards earning your SS1 goal?

 

[noradawn]

No, it seems like all promotions are always "commissionable sales."

 

[BethCooks4U]

I understand that a half-off item is non-commissionable, but does it count in your total sales towards earning your SS1 goal?

No it doesn't. Only "commissionalble sales". But look at it this way: The host wants those deals and so she'll help get the show sales up to get them!

 

[cheesehead]

No it doesn't. Only "commissionalble sales". But look at it this way: The host wants those deals and so she'll help get the show sales up to get them!

Thanks for clearing that up. It will all be clearer once I have my first show done!

One more question though...can the host use there free product $ earned towards the 1/2 off item? To explain what I am asking...if Suzie Host has a $600 show - she earns $115 in free product, 2 1/2 off items, and 25% off. Suzie decides she wants the cookware set half-off at $220...can she apply the $115 to the $220 and just owe the $105 difference??

 

[pamperedbecky]

No, a host will have to pay for the remaining amount of a 1/2 price item. That's a good question to ask because it comes up a lot. The percentage off will apply for the remaining total just of what she doesn't get for free. I hope that makes sense!

 

[Chef Kearns]

Suzie's out of luckNo, the 1/2 selections are only half price. They are tabulated separately. The free product value only pays for those items she receives free it does not cover her host special or 1/2 price. They are all figured separately.

 

[kcjodih]

No, she can't. She CAN however, use the free product towards the cookware and then the discount 25% etc would kick in for the balance. E.g. $220 cookware - $115 = $105. then $105 - 25% ($26.25) = $78.75 PLUS she still has her 2 half price items.

Clear as mud?

Jodi

 

[kcjodih]

LOL....looks like we were all replying at once!

Jodi

 

[pamperedbecky]

What a helpful bunch! Everyone is so willing to share information..that's great!

 

[cheesehead]

No, she can't. She CAN however, use the free product towards the cookware and then the discount 25% etc would kick in for the balance. E.g. $220 cookware - $115 = $105. then $105 - 25% ($26.25) = $78.75 PLUS she still has her 2 half price items.

Clear as mud?

Jodi

Let me just make sure I understand using "Suzie" again...

Suzie buys a cookware set that is $285 and uses her 25% discount = 213.00. She can then take her $115 from that ($213 - $115) and just owe $98? And that would count towards my sales??

 

[pamperedbecky]

It's actually the other way around, first she's apply the $115 that she gets FREE. Then it's $285-$115=$170. Take 25% ($42.50) off of $170. That equals $127.50. Still a great deal AND that's commissionable!

 

[DebbieSM]

I'm not sure I understand Jodi's example. You cannot get 25% off an item and then apply the free product value. The free product value is off the original price of the item. When you enter in the items into PP, before you get the discount, it takes off the free products and the half price items. Someone please correct me if I am wrong.

Debbie

 

[DebbieSM]

OK I now understand Jodi and Becky's examples. You are using all free product value on the cookware set. Becky you are just too quick with that typing. Your response came up while I was typing.

Thanks,
Debbie

 

[cheesehead]

Thanks so much for all of the help! I completely understand now!! I appreciate how fast all the answers come! Thanks again.

 

[Lisa S]

Thanks for clearing that up. It will all be clearer once I have my first show done!

One more question though...can the host use there free product $ earned towards the 1/2 off item? To explain what I am asking...if Suzie Host has a $600 show - she earns $115 in free product, 2 1/2 off items, and 25% off. Suzie decides she wants the cookware set half-off at $220...can she apply the $115 to the $220 and just owe the $105 difference??

No. The host can choose anything in the catalog to use their free $ on (in this case the $115) EXCEPT the half-price combos. So if she wants the cookware set, she can either pay 1/2 price at $220 or deduct the $115 from the full price. Obviously in this case she would want the half-price.

Hope that makes sense.