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Author Topic: Mary Kay Inc Sues Former Consultant  (Read 1644 times)
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RealisticPink
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« Reply #30 on: May 17, 2008, 05:33:53 PM »


"The sad thing is, at that rate, they are probably not making a profit"



They claim they are selling about $2 million of product a year.  I'd say they have it pretty well figured out if that is true.

But the product has got to be old and expired in a lot of cases.  And when that IS the case, many times active consultants are asked to honor the guarantee.  When we direct the person to corporate, we are criticized.
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« Reply #30 on: May 17, 2008, 05:33:53 PM »

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surrenderthepink
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« Reply #31 on: May 17, 2008, 05:43:32 PM »


"The sad thing is, at that rate, they are probably not making a profit"



They claim they are selling about $2 million of product a year.  I'd say they have it pretty well figured out if that is true.

But the product has got to be old and expired in a lot of cases.  And when that IS the case, many times active consultants are asked to honor the guarantee.  When we direct the person to corporate, we are criticized.


Good for them if they are selling $2 million in product. Then I guess they can afford a lawyer.

As for the old product, from what I understand you cannot take back old product and replace it anymore. The company will not replace it. If someone wants to return product to you that they didn't purchase from you then they must contact the MKC to get a replacement or not.
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upyourcadillac
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« Reply #32 on: May 17, 2008, 05:47:34 PM »

Quote
They claim they are selling about $2 million of product a year.

And their expenses are...?

We don't know, do we? But that level of sales would take a boat load of time. That's for sure.

I noticed that they said they purchase product at 50% of wholesale.

Let's take an eye color as an example. I think prices on eye color that they have for sale was $6.00 retail, thus $3.00 wholesale if I'm not mistaken.

That would mean TOP paid $1.50 for that eye color.

They're selling individual eye colors for $3.25 to $4.00. Their profit margin isn't much more than if they were MK consultants.

I'm not sure what my point is. I guess I am thinking back to my liquidator days and I know that I purchased products for way less than they are. Even then, the time and supplies to do it didn't make it worthwhile in the end.


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RealisticPink
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« Reply #33 on: May 17, 2008, 07:47:09 PM »

Mary Kay corporate will always honor the guarantee, despite what you may hear from others.  That said, they may require us to call them to provide details if we submit something on line and it has a 10-year old day code on it or something.  But their guarantee is what it says.

As consultants, though, we are not required to refund or replace product that was not purchased from us.  We are encouraged (but not required) to point the customer to the 800-MARYKAY number for assistance.  Depending on the circumstances, I will honor the guarantee, but I take it on an individual basis and have both honored it and sent some to corporate.

As to the TOP situation, I would imagine that once their store was set up on eBay and their website was set up, maintenance would be fairly easy.  They are buying product that is already entered into their system, so listing it would not be that big a deal.  Going through it to stock it, filling their orders and shipping, etc. would be time consuming, but it IS their full-time job and it is in their home, I think, so they would be expected to do all of those things.  Shipping "and handling" is paid by the customer so the postage and supply cost is close to a wash. 

Even though they are making a great deal of money, this lawsuit will be very expensive to defend.  It is in federal court in a Texas jurisdiction and they live pretty far from there.  Hiring local counsel in Texas from Illinois (isn't it Illinois?  I can't remember now) won't be cheap.  And I am familiar with MK's attorneys (the firm, not the individuals) and they are VERY good.  I doubt it will ever make it to trial, but I am excited about watching the progress.  Should make for an interesting ride!
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surrenderthepink
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« Reply #34 on: May 17, 2008, 08:22:29 PM »

Mary Kay corporate will always honor the guarantee, despite what you may hear from others.  That said, they may require us to call them to provide details if we submit something on line and it has a 10-year old day code on it or something.  But their guarantee is what it says.

As consultants, though, we are not required to refund or replace product that was not purchased from us.  We are encouraged (but not required) to point the customer to the 800-MARYKAY number for assistance.  Depending on the circumstances, I will honor the guarantee, but I take it on an individual basis and have both honored it and sent some to corporate.


I have to differ with you as the company has recently changed their policy on returns. I received an email from my ex director, who still keeps me on her mailing list that spells this out. The company does not want consultants to take back product from customers that did not purchase it from them. If a customer wants to return something to you she did not purchase from you the want you to refer her to call corporate. The reason for this change is because they do not want to have to replace product that comes from a site like TOP that might be old.
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whatwasIthinking
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« Reply #35 on: May 17, 2008, 08:32:05 PM »

True STP, but I thought that that was always a rule and that people can only return product to MKC if they have a receipt. I thought that was on the sales slip. At least that was what I always told my customers and to keep their receipts!
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Trixie
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« Reply #36 on: May 17, 2008, 09:09:18 PM »

Even if MK loses this suit, they've tied up TOP financially and TOP probably won't recover from that.
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« Reply #37 on: May 17, 2008, 09:11:37 PM »

Surrendering I have not received any information about that.  They encourage us to send these people to corporate, but if I meet someone at a class that has product (not old or expired) that is wrong for her, sold by another consultant, I will take it back and apply the cost to her order.  The company has always honored this type of transaction for me and I have done a couple in the recent past.  There are circumstances where I would not do it myself, and would send them to corporate.  It just depends.  If someone can show they purchased old or expired product from a consultant recently, I am sure the company would honor the guarantee and then probably counsel the consultant.

WWIT, you are right about the receipts as well.  I guess if someone kept a receipt for years and then wanted to swap the company would have to do it.  Fortunately, these types of things are not common and I can't imagine how someone would feel asking for a refund for something they had had for a few years, but I guess it could happen.

Trixie, you may a great point.  But I honestly don't think MK will lose.  I don't think it will go to trial, I believe it will be settled out of court with the Webers probably having to make many changes if not having to stop business completely.  I think you are right that it will take a great deal to recover from that and all the expense.
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« Reply #38 on: May 17, 2008, 09:20:38 PM »

I am fairly certain that the MK Satisfaction Guarantee does not exclude 'old' or 'expired' products, but honors exchanges and returns on them as well.

I met many a customer when I was a consultant that had purchased something MK and only used it once or twice because they were dissatisfied.  They no longer had a consultant (go figure...) so I honored the guarantee and let them 'trade' it in for something they did want.  Only once did MKC 'flag' my return because of an old code, but all I had to do was call and tell the lady over the phone what had happened, and she unflagged the return order and it got processed normally.

I am sure MKC never considered something like eBay... but hypothetically someone could purchase something from TOP or eBay for less than its worth, return it via a consultant and get the retail value in $ back, or more probably get a more valuable product.

I think THIS is another reason why MK wants to get rid of TOP and eBay liquidators... but I don't think they can get rid of eBay liquidators.  They may have a case against TOP, however.
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surrenderthepink
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« Reply #39 on: May 18, 2008, 01:57:18 AM »

I am just sharing the information given to me by my ex director in a very recent e mail. It was only a  couple of weeks ago which led me to believe that they just changed it. One of the directors had a return red flagged and when she called was told the company does not want consultants to take back any product from someone who is not their customer. They are changing things because of the eBay selling, etc.

Yes, I always took returns also even if the customer was not mine. I never asked for a receipt because it didn't seem necessary as it is easy to identify MK products. In the past I never had a problem. The last time I sent back an item that was from someone who was not my customer and was older they red flagged it. They did eventually replace it anyway but they are saying now they want consultants to refer the customer to call corporate instead. The rules are changing according to the email which was sent to me by my ex director and was sent to her by an Executive Sr Director. I am going to look for it and re read it just to be clear and will report back if it is anything different.
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upyourcadillac
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« Reply #40 on: May 18, 2008, 08:40:22 AM »

surrender, please post the email here if you find it.

Anyone who has access to InTouch can post the returns info here as well.
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Tam
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« Reply #41 on: May 18, 2008, 10:21:54 AM »

Surrenderthepink - I got a similiar e-mail, but have deleted it.  Something along the lines, only do returns for YOUR customers, refer all others to MKC.
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Trixie
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« Reply #42 on: May 18, 2008, 06:57:50 PM »

Yes, all consultants were informed by the D & SD that MK doesn't want anyone to take back products that they didn't sell themselves, and to refer anyone else to call MKC themselves to find out how to return or exchange the product.
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surrenderthepink
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« Reply #43 on: May 19, 2008, 03:06:28 PM »

Thanks Trixie and Tam. I was beginning to think I read it wrong!  :ty:
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