Due to the overwhelming gratitude for our last article, we’re answering questions that rolled in about the new product changes & how to get them on your shelf without breaking the bank. Before we begin… Don’t forget about all the practical training videos you can access in our Training Center. This is perfect time to brush up on your skills on handling Discounts and Giveaways. There’s an awesome 5 minute video in The Training Center called “How to replace discounts & Freebies without losing your mind!” or CLICK HERE to view it.
Given all the questions around this season of change in Mary Kay, we created a special Webinar called “Smart Moves with New & Expired Products!” It’s on Wednesday, October 20th, 2010 at 6 PM PDT. We will SHOW you how to track and save for new products stocking LIVE! Click here to register!
It can be overwhelming when so many products change at once. If you are intentional about your business, intentional about your inventory and intentional about making a plan you can have it all… without breaking the bank! Share some of your own tips on our Facebook page for “Ascend Live” or on our Facebook Fan page “the Training Center by Ascend Live”. We can’t wait to hear YOUR ideas!
Q: Dear Ascend, how do I properly handle expired product?
A: First you’ll want to know that most Mary Kay® products are produced to have a minimum shelf life of 3 years from the date of manufacture. If the shelf life is less than 3 years then the expiration date of the product must be clearly indicated on the package. You can find a list of products with expiration dates and how the MK coding system works in Product Central under “product presentation & expiration” on InTouch. You will want to identify expired or unsellable product (e.g. if it isn’t in the Look Book, you may not be selling it). Expired product needs to be removed from your shelf and tossed; unsellable products may be donated and you may deduct it. It is way better to give it away for a deduction then to let it sit there collecting dust, in our humble opinion. Talk to your accountant for more specifics on handling unsold, expired product where your taxes are concerned.
Q: Dear Ascend, with all the new items and new packaging coming in, how do I decide which items to keep on hand and which to move? I have customers who LOVE these products and don’t want to disappoint them when they are no longer available.
A: You are a smart business woman. DON’T stock up on product that is “going out,” that is not a smart move! DO think of fun, creative ways to make your customers “want” what you have, yet dangle the carrot of what is yet to come. It really boils down to embracing change. No one really “likes” change but is a necessary part of life and your business. It is a smart business move to have current products on hand… Your customers will adapt to the new items offered once they are introduced to them and have a chance to try them. Eventually they will need to switch over to the newer offered items as your inventory of “previous items” shelf life will come to an end. You really don’t want to keep more on your shelf than you need to as it is a depreciating asset!
Q: Dear Ascend, I am so excited by the new packaging and new products coming out. I don’t want to miss out but I also don’t want to increase my credit card debt.
A: You don’t have to! Having inventory on hand is what makes a Mary Kay consultant stand out, BUT your clients know you keep the most ordered items on hand. It is OK to tell them… You know I’m out of that. I’m happy to order it for you and will get it to you ASAP. If it really bothers you, you can say, “I’ll have a special gift for you for waiting.” Then include a small sample for her to try as a gift.
Want another “real world” example? One of my girlfriends recently told me she went to her local salon to purchase her hair styling products. When she got there the shelf was empty. The salon owner told her they are on order and to stop in a few days later. So she did. Believe it or not people ARE used to waiting for things they love from time to time. It’s OK!
You also might want to keep this in mind when deciding to purchase on a credit card… The longer you keep a balance due to inventory purchases on your business credit card the less potential profit you have. Every month you pay the % interest on the product sitting on your shelf your profit is DECREASED by the % rate – until it ultimately means no profit can be made on the sale because the potential profits have been spent on interest.
Q: (this is a similar one!) Dear Ascend, I intend to order the new items slowly and build my inventory over time…What if my customers order more than I have?
A: Again, if the item is new you can say something like, “Wow that item is flying off my shelf, I have some on order and will be sure to reserve one for you when it comes in.” OR “I am waiting on my shipment including that item to come in. I’ll have it for you by next week”.
Q: Dear Ascend, How can Ascend Live help me keep track of the funds I need for these changes.
A: Ascend Live is a money management program that gives you a windshield to plan ahead for future expenses. This type of planning is one of the greatest benefits of having Ascend Live. You can simply create a custom envelope called something like “Savings for new inventory” or “out with the old!” or even “liquidation sale”. You can then set the funds aside in this envelope so you are not tempted to use it for other expenses.
Don’t forget to join us on Wednesday for the upcoming webinar “Smart Moves with New & Expired Products!” where we’ll go over how to track and save for stocking new products LIVE! Click Here to register!