Should I Include Freebies in Customer Orders for Better Financial Benefit?

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Discussion Overview

This thread explores the financial implications of including freebies in customer orders for Pampered Chef consultants. Participants share their experiences and thoughts on how to manage consultant gifts and maximize commissions while hosting parties.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant, discusses giving away free products during a party and considers whether to enter these as consultant gifts to benefit financially.
  • Another participant suggests that deducting supply order items may be more beneficial than adding freebies to individual orders, as it could save money in the long run.
  • Several users mention the limitations of ordering certain products on supply orders, which could complicate the process of distributing freebies.
  • One participant shares their decision to include rubs in guest orders while planning to restock on their next supply order, reflecting on the financial aspects of their choices.
  • Another participant calculates the potential commission loss when giving away products and suggests using the host order to maximize benefits.
  • Several participants express gratitude for the support and clarity provided by others in the discussion, emphasizing the collaborative nature of the community.

Areas of Agreement / Disagreement

Views differ on the best approach to managing freebies and consultant gifts, with no clear consensus emerging on the most financially beneficial method.

Contextual Notes

The discussion takes place within the context of a specific party event, where participants reflect on their experiences and the financial implications of their choices regarding consultant gifts.

Who May Find This Useful

Consultants looking for insights on managing freebies and maximizing their financial benefits during parties may find this discussion relevant.

babywings76
Gold Member
Messages
7,266
I hosted a party and gave all attendees a free SB. I also gave them a free rub if they purchased $40 or more. I'm entering the amounts into P3 as a consultant gift. I gave them new issues of the SB that I purchased on a supply order. Am I better off just leaving it at that or should I enter in a SB into their orders and put it down as a consultant gift? This way I'm restocking my inventory and also getting it to count towards my commission? I know it's just the $1 SB, but every little bit adds up, and the same thing could be said with giving away rubs. I could just have given away things I bought on a supply order.

Which way is financial more beneficial?
 
You can already deduct the supply order items. I would just do that but anything you have to buy otherwise I'd put on the host order to save you some cash out of pocket. Just make sure she understands who they're for and why you did it that way.

If you want to you certainly could put it on each person's order but I think in the long run that's costing you more than you get back.
 
Also, can't you only order one of each rub on supply order? If so, then you may have trouble doing it that way...
 
  • Thread starter
  • #4
Thanks Beth. :)I'm going to go ahead and put the rubs on each of their orders. (I don't have that many rubs on hand anyway. I was thinking about if I were to do this another time, which way is better.) I'll take the SB's off. I'll restock by ordering on my next supply order. Leslie, you're right--As soon as I posted that I realized that there is some sort of limit, so that probably isn't the best way to do things either.
 
With a $40 order, your commission is at least $8. Ordering with each guests orders, you
re giving away half your commission, plus the cost of the SB's. I'd order all the SBs and rubs through the host order. You'll get the host discount and commission, thus making it about 60 cents a piece for the SB and a little over 2.50 for each rub. Create an excel file for the host on who gets which rub and that each guest gets an SB.
 
  • Thread starter
  • #6
Oh shoot. I wish I hadn't submitted the show! You're right, I could've saved some money if I had put the rubs on the host's order. Darn...:(
 
Jolie_Paradoxe said:
With a $40 order, your commission is at least $8. Ordering with each guests orders, you
re giving away half your commission, plus the cost of the SB's. I'd order all the SBs and rubs through the host order. You'll get the host discount and commission, thus making it about 60 cents a piece for the SB and a little over 2.50 for each rub. Create an excel file for the host on who gets which rub and that each guest gets an SB.

You said that so much clearer than I had!

Hosts don't mind either especially when they realize that some friends buy more than they might have without your additional incentive.
 
  • Thread starter
  • #8
I reread what you wrote Beth and I feel so dumb that I didn't understand what you meant fully. You did explain it right, but for some reason I just didn't make the connection to put the rubs on the host order. Well, I did somewhat, but maybe it was because at the time I was the host, so I was thinking I wasn't going to be earning the commission and then later when I changed who the host was I forgot about what you suggested. Oh yesterday was such a crazy day and I had a million distractions going on.This was such an interesting show situation for me. It was my Fall Kick Off & Customer Appreciation party. I ended up closing it at $622.61. At 22% commission, I'll get $136.98. It ended up being $25.07 in consultant gifts (all the free rubs). I will just reorder SB's on my next supply order.This is also the show where I gave away one of my 1/2 price items to my mom's co-worker who wants the knife block set. I also gave the DCB that I was allowed to get, but didn't need for myself or could afford to just hang on to for the future, to another friend of mine. This friend wants to do a catalog show and get another DCB because she wants to get one for her mom as a Christmas present. So I figured it would be nice to help her out. To accomplish this, I went ahead and put the knife girl and this other friend in as host and co-host and am having the show shipped to me. Hopefully everything works out well and I've made some people happy by being generous. I normally don't do the extra free item thing, but I did for this since it was a "Customer Appreciation" party. My mom's co-worker will also now have a 10% to spend on the show her other co-worker wants to do to get the cookware--and I put that co-workers name in as a booking for the knife lady. And my friend that wants to do a catalog show, I also put her down as booking off herself. So, they both will be happy that they have that extra 10% off and the booking benefit.Phew! I survived the logistics of entering it all in. Now to make sure to follow up with the other guests and make sure they have the show number on their receipts should they have a problem further down the road, but I'll take care of the 1st 30 days.
 
That's a shame it's submitted Amanda. I figured you'd missed Beth's meaning so I restated it. =)

Beth, you always rephrase my thoughts in a clearer manner and thought to do the same.
 
Congrats Amanda! Looks like you had a successful Appreciation event!
 
Jolie_Paradoxe said:
Congrats Amanda! Looks like you had a successful Appreciation event!

Yes! You were quite successful! Remember that your out of pocket cost was even less than you calculated because while your "consultant gift" was $25.07, you do also get commission on those purchases. I would definitely have done the co-host thing you ended up doing with giving away those two particular items.

You know, that's what we're here for - to help each other out. Something I think is clear is clear as mud but restated by someone else makes sense. Sometime I do the clearing up and sometimes someone else clears up mine. All works out to everyone's benefit!

I love that we all work together to help each other in this business without feeling like we're competing.
 
  • Thread starter
  • #12
BethCooks4U said:
Yes! You were quite successful! Remember that your out of pocket cost was even less than you calculated because while your "consultant gift" was $25.07, you do also get commission on those purchases. I would definitely have done the co-host thing you ended up doing with giving away those two particular items.

You know, that's what we're here for - to help each other out. Something I think is clear is clear as mud but restated by someone else makes sense. Sometime I do the clearing up and sometimes someone else clears up mine. All works out to everyone's benefit!

I love that we all work together to help each other in this business without feeling like we're competing.

Thanks you guys! :)

I just am so grateful to everyone here and all your willingness to listen and help. I have learned so much and just hope that through what I learn I can help others, too. I love that we can call each other friends as well. :)
 
babywings76 said:
Thanks you guys! :)

I just am so grateful to everyone here and all your willingness to listen and help. I have learned so much and just hope that through what I learn I can help others, too. I love that we can call each other friends as well. :)

So agree! And you have already posted many helpful things! Don't sell yourself short.


...I used to be hurt when someone else would post exactly what I thought I had already said and THEY got the credit for the info but then I realized that maybe I knew what I was trying to say but I might not be as clear as I thought or that my post might have been missed when that person was looking through the thread. It's not about who says it, it's about the information getting shared! I love my CS friends! :sing:
 
BethCooks4U said:
You know, that's what we're here for - to help each other out. Something I think is clear is clear as mud but restated by someone else makes sense. Sometime I do the clearing up and sometimes someone else clears up mine. All works out to everyone's benefit!

I love that we all work together to help each other in this business without feeling like we're competing.

Yup...it's one of the reasons I keep coming back. I love the spirit of generosity, family and the time everyone takes to help someone out.

Competition, having to be right and unkindness is a contradiction to helpfulness and negates the intent of being helpful. :rolleyes: ;)

I always try to be helpful, but sometimes type to quickly to pay attn if it's clear or if I skipped a step in my explanation! lol Which is why it's good to have others as backup. he he
 
Okay, you guys, this is a greaaaaat thread! Partly because, as a newbie, I get to see how to think and work this all through. Great idea to give the rubs as a gift, to put them on the host's order, and so forth.
thanks so much, all of you
 

Frequently Asked Questions

Should I include freebies in customer orders to increase sales?

Including freebies can encourage customers to place larger orders or try new products. However, it's essential to ensure that the cost of the freebies does not outweigh the potential increase in sales. Consider offering low-cost items or samples that align with your product offerings to maximize the financial benefit.

What types of freebies are most effective for Pampered Chef customers?

Effective freebies for Pampered Chef customers often include small kitchen tools, recipe cards, or samples of new products. These items can enhance the cooking experience and encourage customers to purchase related products in the future.

How do freebies impact my profit margins?

Freebies can impact profit margins if not managed carefully. It's crucial to calculate the cost of the freebies and ensure they are factored into your overall pricing strategy. Offering freebies can lead to increased sales volume, which may offset the initial cost and improve overall profitability.

Can freebies help with customer retention?

Yes, freebies can significantly enhance customer retention. When customers receive unexpected gifts or samples, they often feel appreciated and valued, which can lead to repeat business. Building a positive relationship through thoughtful freebies can foster loyalty and encourage referrals.

Should I promote freebies in my marketing efforts?

Promoting freebies can be an effective marketing strategy. Highlighting the availability of freebies in your promotions can attract new customers and incentivize existing ones to make larger purchases. Ensure that your marketing materials clearly communicate the value of the freebies to maximize their impact.

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