A vent- increased costs for me.

Kat_D replied:

*hugs* I don't have any advice, but I can imagine your frustration!

- Kat

Janine replied:

Hi Arm Candy,

I have in the past been with a company that restructured which happened with change of ownership. Commissions dropped alot with that change - from Up to 40% down to 20% to 25%.

It took me ages to make the decission to not continue but that was the choice I made.

On 20% commission I would be making next to nothing while incurring catalogues, postage fees that were not covered by customers fees etc... I loved the products and still do but there comes a time that you need to look at how much money you will make after your expenses and if you are in the red or making very little then you need to have a think about continuing with the company or not.

Unless you are solely buying for yourself, at the end of the day you do need to be making money and if not then you need to decide what your next step is with that company.

Cheers

Janine

ArmCandy replied:

Janine, thanks.  That is what I am struggling with.  The only way for us to get any sales is only from guests coming to a party and buying.  (we have no online store, no catalogs etc..)  so with 20% commission and average parties being 300-400 bucks...  plus paying for credit cards and the business cards... and my time and lugging all of the stuff around and gas etc...  I'm finding it's not worth it.  I put in full time hours working hard- and i'm not getting much in return.  I can see and have the tools to have amazing parties and 'recruits'... but where I am now and the way things are going- those things aren't going to be able to happen where i am.  I'm feeling like I'm just always going to be "stuck" working my ass off- for a couple hundred dollars a week.  I know I could be making much more somewhere else.  But I do know my heart is totally in with the products we sell etc.. there just isn't another company out there offering these products here.....

but that's a whole different story too =)  If you're thinking along the lines of "if you see an opportunity to to something better....."  But anyways.....

I do know- the girls who do it with me, who only do a few shows a month for extra income- aren't going to stick around having to pay all these extra fees and costs for the commission we are earning-  they won't make any money. 

FM-Fragrances-Australia-World replied:

Hi Hon,

I do feel for you, at this time FM Australia does not pass on these charges - however when i pay my bills by C/C, they always say you will incure a 1% or 2% C/C charge, or whatever they are charged.

Although I feel for you - to me this is normal practice, and this is the way companies are going. I am not sure why it does not bother me, but it dosen't.

Seeing that i have had to pay the surcharge for sometime on my bills, it's part of my every day expenses, and I consider it the norm.

It won't be long before a lot of small businesses pass this charge forward.

maybe add the charge to your delivery fee to the customer or something.

When I have to pay it with FM, I will pass it on, why should I wear the burden of cost - or it gets built into pricing one or the other.

Question: Which other companies atm do this in PP land?

Rich xoxoxoxoxoxoxoxoxo

www.join.fmforlife.com

Sponsor Number

12006520

marina replied:

The only thing i can suggest is if you love your company and dont want to go, maybe let the hostess know and the customers  prior to your show " I take cash only"    

Having said that though, we have found that when we offered eftopos/ credit card  facilities show sales increased.

Maybe think about getting your own terminal that you take with you to your shows.. for me this is way cheaper then going through our headoffice...

but it is a cost that someone has to pay ( credit card fees) and ultimately it is the party planner. 

I do not pass this cost onto my customer at all and I never will.

At the end of the day you have to be happy doing your pp, and if you let this affect you it will show in the bookings and your sales as negative energy...

You have to be 100% happy with your company.

You say there is no room for you to have consultants under you,.

That is a big question to ask yourself.. Do you want to recruit and make the bonus cheques or are you happy to continue in just sales...

Think about it over the next couple of days, write down the negatives and positives, compare other party plan companies and see how you go.

change is hard as they say and change is scary.

maybe what you can do is have a break for a while, try out a party plan of your choice and see how you go.

Almost like a trial.

Then you can make a firm  decision.

warmest wishes.

marina

icetoice replied:

gee 20% is not much at all that must be very frustrating.

There are a lot of different party plans that make a lot more % then 20 % not sure what they have where you live but maybe a change is worth looking into .

regards Craig.

Ladywytch replied:

20% is standard some give more and some less.  Most companies work on a tiered structure and you are able to earn higher commissions with higher sales or responsibilities.

As far as the credit card issue is concerned I think hostesses need to be made aware of this so maybe they ensure cash - work out a bonus for them if they have every guest pay at the party in cash (if your company doesn't already). 

It is however a great opportunity to hone your skills at increasing sales.

Handbags - right - I never buy a handbag without a matching purse - yeah I know I am slightly excentric but...

Increase your party average and the credit card thing will absorb and remember it can and should be included as a tax deduction.

The business cards are another issue.  However I had a similar problem with a company I worked for and worked with the art design people to come up with something unique for me that they approved of and got to have my printers do the work.  Talk to them - if they are unapproachable maybe it is time to look around for another outlet.

I am sorry you are going through this but one of the joys of working for someone is following their rules and as they made the company they make the rules.

Blessings and I hope the frustration levels decrease,

M

ArmCandy replied:

Thanks all for the responses!

With the credit card - I understand with most companies you pay a fee for every card you process- ..  Ok let me explain.. when XYZ company joins up with a credit card processing company- the credit card processing company says, "Ok, XYZ company, we are going to charge you $XXXX.XX amount a month for our servives- and then everytime your consultants process a card it will cost X% of the transaction"  So XYZ Company signs up- and pays the $XXX.XX fee everymonth- but then says to their consultants that they need to cover the 1% charge for each processed card.  THAT IS FINE- I'm ok with that----  but my company is saying, "we're giving you the name of this place- you have to be able to process credit cards- so set up your own merchant account with them, pay the monthly fees AND pay for each card you process"

On a much more positive note though:
Before I started with my PP- I had a vision, but knew it wasn't the time to implement it.  Then I started with my PP and I've learned and learned and learned SOOOO Much and have worked so hard!  (I seriously work 40 some hours a week doing things to grow my business and educate myself etc..)  I've been praying etc... and I know, I have all the tools I need, and now is the time for me to implement it...  that is exciting and scary!  When things get more set- believe me you all will know about it~!!

Yetanotherexmember replied:

We will look forward to hearing about your up and coming journey.