1. You are off beam saying that the cars cost Mary Kay Inc. nothing. They have to be paid for like a company car offered by a legitimate company. What you mean is presumably that MK Inc hopes that the extra amount of income it will receive as a result of offering the car will exceed the cost to itself of the car scheme. Maybe they do, maybe they don’t. We don’t know whether this scheme boosts or harms MK Inc’s bottom line, but we do know is that the way the car scheme is sold to prospects is manipulative and crass.

   • You’re wrong, Phillip. The way the car program is set up, the company receives revenue several months in advance of paying anything for the car. And this revenue is essentially inflated…. done for the purpose of getting the car… in an amount well above what the car costs. The company ha set the program up in a way that the company will never lose. They always win because the level of wholesale orders that the recruiters have to push far exceeds any cost of the car.

   • Philip … MK Inc hopes that the extra amount of income it will receive as a result of offering the car will exceed the cost to itself of the car scheme

     Hopes? Hell no. Mary Kay has the program set so that they are at zero risk to their bottom line. Here’s how.

     1 – Mary Kay is getting “fleet rates” on leasing those cars from the manufacturer, so they are spending less per car on leases than a single-car lease would.

     They don’t have a lot full of them waiting for someone to qualify, they order them as needed and the luck woman picks it up at a local dealer.

     2 – As Tracy said, there are a few months of required high production to “qualify” for the car program. And if your team doesn’t order enough, oh well, they still have all that money from the attempt.

     3 – After qualifying, if the car’s driver and her downline don’t order enough product, the car’s driver has to pay a “co-pay”, which is deducted from her commissions or billed to her if her commissions aren’t high enough. By a stunning coincidence, the maximum co-pay is higher than a consumer lease on that kind of car from a normal leasing company (we’ve done the calculations).

     So when you add up the first three factors: worst case is that MK makes enough from the car-driving unit to cover the cost of the lease and the processing.

     Best case is that a unit tries several times to qualify and fails, because MK gets all that extra ordering and doesn’t have to hand over a car.

     4 – Mary Kay brags about picking up 85% of the insurance payment. The catch is that the cars MUST be insured through their company, and the cost of the insurance is really high. The IBC’s 15% is often higher than the cost of adding another car to the IBC’s existing insurance policy.

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2. I did m k about 10 years ago and found that being a director was hard word n trying to recruit was not fun so I left mk glad I was not stuck w rooms full of mk products bought my own Cadillac thanks mk but no thanks

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