How do your customers feel about your Commission?

CKCath replied:

As a consumer i want to know i am getting value for money. I know that every store makes money on every item they sell, but within reason surely.

I don't want to pay $100 for item X knowing that the consultant paid $50 and the company they bought it from made money too. I want to know my items true value! Is item X really only worth $25?

I would have a hard time justifying selling something myself with such a huge mark up. I would feel I was ripping my customers off selling something that was only worth half (or less) what it cost them!

Please note this is just my personal opinion, I know that owners of companies make money as do the consultants and so they should.

Zammy replied:

Wow, I can see this post will probably really upset some people.
No one wants to be thought of as ripping their customers off!

Don't forget guys, that mark-up happens in ALL industries.
For instance, farmers certainly didn't receive the $15+ per kilo that bananas were going for not so long ago, they still received the pittance they would have gotten if the bananas were at their regular price.
Service stations buy their coke at the same prices as supermarkets and are able to put a considerable markup on them.

Just because the manufacturer only sells product x for $25 doesn't mean that's all it's worth.

I'm not attacking any one here and for the record, I'm perfectly happy with the 20% commission I earn.
I just think that inflammatory posts like this aren't in any way beneficial and not really in the  sharing and caring spirit of this website.
xxxxx
Merry christmas everyone
Shannon

DEBBIEANN replied:

hi,hi,hi Ladies, ... following the same line as Zammy here.... Every business has mark-ups to cover commisions, bonus cheques, half price launch packs for consultants, free packs for managers/consultants, trips, jewellry and so much more, whatever the pp co offers its employees- its a markup.............its not about the commision ladies ..unless they are interested in your job!!!!. customers will pay whatever the cost if they are in desire of owning that product b/c of quality etc.

get back on track!, we sell quality and we offer the gift of earning the commision we recieve, whatever that may be, to our newest and oldest friends........................cheers Ladies.....Lets party!

downunder replied:

I find this a really strange question. I am with one of the higher commissions companies and I don't have any problems with the % at all. My products are very competitively priced with store bought lines since we are direct marketing and cutting out a lot of middleman costs.

Do you have a problem when you hear Supermodel X has been paid $millions to promote a line....not to mention the costs of all those glossy magazine & TV ads?

Also that commission had to cover phone, fuel and general running costs so it's not like it is all profit. Sometimes that is the difference between the higher/lower rates (benefits).

Julie

EnvyEssentials replied:

Ummm....Wow!!! I really did not mean to stir up the hornets nest. There is a perfectly logical reason for me to ask this question that has absolutely no malice in it at all.

As a company owner I have been able to source some quality products direct from the manufacturers as opposed to a wholesaler - for some substantial savings. Now, in recognising that our consultants (and our customers) are the most important people in our business we are looking at increasing their commission. Currently our consultants earn a higher % than we do and thats the way I would like to keep it. My reason for asking was that I did not want to increase their commission if it was going to be to the detriment of their business or my business.

There is no point in earning a higher commission if you sell less and your PP company sells less overall then your costs per unit go up and you are in real trouble.

Sorry to offend anyone.

Nice to see that you are all passionate though!

Cheers

Matt

sanctuary replied:

something else I would like to add - remember we are providing a valued service to people to shop at home with their friends - we have to be paid for our time the same as a business with a shop front has the overheads of a shop and staff - our shop is our parties and we should be compensated for that - I dont think our customers expect that we can give them a personal viewing of our products in their home purely for the love of it.

chocolateaddict replied:

I would have to say I totally agree with  Ck~Cath. Only because of past experience.

I bought some earrings from one PP company and they cost me a fair amount of money. They are cheap products. I cannot wear them as they hurt my ears, (can wear them for a short time then my ears get sore for a few days) another friend had the earrings she bought break after only one or two wears.  (they were replaced with a bracelet she didn't want and the rep tried to convincer her to host a party.) 

Knowing that the rep took a commission made me think/realise that I could have gotten the same quality (or better) at a market or even kmart for much less price.

I am happy with the commision I make, I am not going to retire anytime soon on the money I make but I love the product I sell and so do most people! lol

If the product is good quality I wouldn't begrudge the commission but having been sold cheap junk I have been once bitten, twice shy.

downunder replied:

Having confidence in the products you sell is everything!
I too would be extremely disappointed if I was soled Junk through a pp/
Actually, I was a customer of LR and it was because I loved their products, that I joined - even though I had never intended to join any pp.

Julie

marie811 replied:

I am not a pp consultant yet, As a customer of party plan. If I like the service & the product, I BUY. Todays customers will come back because of products & personal service. WE ARE NOT SILLY,  If the product & service is bad I may buy 1time only.You wont get my money again [or my friends] As a customer I dont care what you make. I care about value for the money I spend with you and the service I get.

Marie

scrappy replied:

I think its pretty safe to say that if a customer thinks that an item is over priced they wont buy it, and no matter what your commission, if the item is priced right, it will sell.
Party Plan is just another way of selling a product, it makes the product no cheaper in most cases. It just marketed and sold differently.
I can say that a certain product sold at a retail chain for $45.99 is bought by that particular company for $2 but they buy in quantity of over 80,000 per order. This product still sells amazingly at the full retail price, and no one complains? its just business.
The only time my customers worry about the % made is when they themselves are considering joining the business.
If you can buy your products cheaper than before, then you have done well, but upping commissions or dropping retails is not a good choice. It is always wise to stick to your original business plan if it works, and making money is how a business survives. If you have huge profits, channel them into something worthwhile rather than changing the original plan.

Michelles replied:

Well I have been reading the varying responses in which Matt's question has generated.  Well first of all isn't it great to see a male PP???  So come on ladies lets not scare him off!!!!  ha ha ha  So well done Matt in generating such a good discussion with such varying views - all valued points of view!!!!!!!

I never looked at the markup and commission in this way so it really is a different way of seeing things!!!!  I suppose I don't let on to customers how much commission I earn.  Maybe this is strange but I just wouldn't let on unless someone was interested in joining!!!!! 

But now I am thinking I need to start sprouting that I earn 50% commission for selling adult toys and lingerie all whilst playing "Pass the Parcel" and "Pin the Macho on the Man" -  and maybe some ladies may be interested in what I do!!!!!!! 

But seriously as others have voiced, it isn;t the markup that matters but rather the quality of the product.  And you need to be happy with what you are selling, believe in the product and the retail price of the products.

Stay Healthy and Well for 2008  -  Shel

ExMember148 replied:

I do notice you are relatively new here Michelles, but there have been quite a few males through the pp doors, not to forget wonderful Graham and Richard!!!  And the one and only Mr PP himself.  Male or female all members bring wealth, knowledge and a variety of opinions with them.    

 Quote:

Well I have been reading the varying responses in which Matt's question has generated.  Well first of all isn't it great to see a male PP???  So come on ladies lets not scare him off!!!!  ha ha ha  So well done Matt in generating such a good discussion with such varying views - all valued points of view!!!!!!!

I never looked at the markup and commission in this way so it really is a different way of seeing things!!!!  I suppose I don't let on to customers how much commission I earn.  Maybe this is strange but I just wouldn't let on unless someone was interested in joining!!!!! 

But now I am thinking I need to start sprouting that I earn 50% commission for selling adult toys and lingerie all whilst playing "Pass the Parcel" and "Pin the Macho on the Man" -  and maybe some ladies may be interested in what I do!!!!!!! 

But seriously as others have voiced, it isn;t the markup that matters but rather the quality of the product.  And you need to be happy with what you are selling, believe in the product and the retail price of the products.

Stay Healthy and Well for 2008  -  Shel

Michelles replied:

Glad to hear there have been a few males through the PP doors.  But where are they??  Yes I am new and reading through discussions here and there over the last few months have not seen many responses from the fellas.  But good to know there have been a few here and there!!!!

Cheers - Shel

sparklingvoodoo replied:

I personally as a customer or a consultant am slightly weary of companies that can offer all their consultants 50% comission. This is just my opinion, I do wonder if I can get the same for less somewhere else. Sure maybe as a team leader or something along those lines I can understand. It is no different to any normal business, you would ask questions if the sales assistant got 50% of their sales for the day.

Remember JMO

Cris replied:

Hi Guys

I have noticed that there seems to be a lot of discussion about commissions lately. People are motivated by different aspects of business; the product, the bonuses, the commission or even the friendships. It is an individual choice.

In society, people take on different forms of employment/roles for similar reasons; the love of a particular job, the renumeration it may bring. We have people in high paying jobs and people in non for profit organisations. We have stay at home mothers and we have working mothers, we have ladies who chose to do party plan and ladies who do not, we have ladies who love to be Hostesses and ladies who do not. Different things motivate different people.

Personally, I would not disclose my commission to a customer, as part of general conversation, this is similar to when I was in so called 'paid employment'. I did not consider it appropriate for an individual (other than family or friend) to enquire on my hourly rate. This was personal to me.

If this question was asked at a party, I would try to turn the conversation around to point out the Hostess benefits, which usually amount to be greater than a consultants commission. I know in the 2 party plan businessess I have been involved in, the Hostess benefits have always outweighed my Commission. I try to focus on this.

Alternatively, if a lady is curious about my renumeration, it may be because she is looking at adding a bow to her string, she may be a possible new recruit. Otherwise, if it is general sticky beaking, it is none of their business.

Cris

FM-Fragrances-Australia-World replied:

Maybe males (at least for me) only bother waisting breath when required!

As far as postings are concerned, I only bother when relivant.

Really if most of the people on PP are only in it for the fun, then I would assume, that those people are kidding themselves, as I am sure, and would love to be proven wrong, that in this day and age, waisting money is a good thing for fun... Bull... you did this because you thought you would make a dollar, and might have some fun out of it..

I always laugh when people say "It's the principal not the money" hahah lol It's the money!!!!

As for companies letting some consultants get up to 50%, good on you, however regardless of what percentage your getting, your parent company is probably making 250% on some china crap.

I fully support any owner who can reap great profits, and if people are silly enough to slog their guts out for 20%, good on you and more fool you.

I do not support in any way or form, a company that states you must purchase upteen hundred dollars worth of stock, to sell their goods and be a consultant, in fact any PP company should be grateful that people are prepared to work on commission only, and therfore should expect a high return, and remember most see party plan as a hobby, and this is what the companies prey on.

Again I have no problem with profit, and I have no problem with people paying high prices for goods that can be bought at a $2.00 for less, as you are all adults, and make the decision yourselves to be ripped off.

Yes I love Miessence (Organics) though I would have to be considered stupid if I did not entertain the thought (ON SKIN CARE) the parrent company is making a min of 350% mark up from land cost, for if they did not, there would be no company at all.

I only know of a select few who have somehow, built a regular income in being the consultant- be the company producing the product, then we are talking serious money.

Richard