Director Entering Discount Codes: What Do Consultants Do?

[flemings99]

Curious how you enter these. I've always used the ck mark and put them in as half off. Have heard of other consultants who don't mark them 1/2 off.

 

[pckelly]

do you mean that they have the host pay the 50% amount, but then they put it as a discounted item so that they get paid AND get points?? I've heard of it. Frankly, it's too much screwy math for me to mess with. I believe it spread like wildfire through the group of 'PC Super Stars' who aren't around any longer. Tom Marsten, Jana Washatka, Amy Cherkas....

 

[cincychef]

I have heard of paying the difference as well as offering unlimited half price items for $1,000 shows. I have never done it, but if you do the math a top seller would break even or make more doing it this way so I have considered it. With a $1,000 show the hosts discount is 30% So just to make the math easy say she wanted $100 item for half price. If you ring it in under her discount then it would be charging you $70. The host would have payed you $50 for the item and my commission rate is usually 30% or higher so you would make $21 back so you are actually making "more" this way, plus you would earn trip points as well.

 

[chefkathy]

I think it borders on unethical. I personally don't want to mess with it. My goal is to run my business as simply & honestly as possible.

 

[pckelly]

I think it borders on unethical. I personally don't want to mess with it. My goal is to run my business as simply & honestly as possible.

See the names I listed above for the unethical part....there is a reason they are all gone. One of them even earned TPC in all 5 catagories and then was gone the next year.

 

[cincychef]

I don't think it's unethical because nothing requires hosts to use the half price items and we can offer any specials we want like unlimited half price items, I actually like that idea. I do agree that it wouldn't be simple to track and I want my business to be simple! Also I want to be duplicatable and you have to have some overhead to be able to offer this and I don't want my consultants to think they have to have extra money in the bank because this would most likely cost them money.

 

[chefkathy]

I think it borders on unethical because the intent of doing this is to earn more trip points.

 

[pamperedlinda]

I think it borders on unethical because the intent of doing this is to earn more trip points.

I don't understand why we don't get trip points on host specials and half-price items anyhow. Afterall, we worked with the host to make sure she got those rewards. And, many times, we gave them an order or two to boost their level. That being said, I have done this when the 'math' worked out and when I could afford it. It will be more difficult to do once the new system rolls out though.

 

[PCJenni]

watch out girls.. I know 2 people who were audited for other things and they were questioned about how come some of their hosts were not taking the half priced items, how come they never sent in catalog shows (putting everything in as cooking shows)...be careful

 

[flemings99]

watch out girls.. I know 2 people who were audited for other things and they were questioned about how come some of their hosts were not taking the half priced items, how come they never sent in catalog shows (putting everything in as cooking shows)...be careful

I have host often who don't take 1/2 off items and others who don't take the 60% special, but usually they don't spend much over the free amount either. They aren't obligated to take the 1/2 off, but could see where that could be a red flag. I think it is a nice selling point that you can host a show and not pay anything, just get the free stuff. I've offered this before to those who don't have the $ and tell them I'll even bring the ingredients.

 

[cincychef]

watch out girls.. I know 2 people who were audited for other things and they were questioned about how come some of their hosts were not taking the half priced items, how come they never sent in catalog shows (putting everything in as cooking shows)...be careful

Can you really get in trouble for that? I have people not take them too, but not all the time! I wouldn't do it myself except maybe as a promotion for a mystery host show, but still....

 

[finley1991]

I have heard of several audits from HO and they are scary. For me, it's not worth it.

 

[cincychef]

I wouldn't want an audit either!! I guess the thing is I run my business pretty above board and don't try to think of a way to get around the rules so it just comes as a surprise to me when it happens. The trips really aren't that hard to earn (not trying to make anyone upset) and I can't imagine that it would really be worth it to change half price #s for the extra points. I think it might be a nice "perk" to give away extra half price items as a bonus sometimes (and I have never done it!) But then I guess that would raise any red flags anyway if you did it once or twice a year!

 

[CoidgigBese]

My guess is that the issue during the audits is that the hosts went well over their free product and the consultant did not select any half-price items. It's perfectly AOK for a host to just use the free product, or free product with some or all half-price options used without getting into the discount. I think the red flag for HO is seeing all this free and discounted with no half-price selected. I think I may have heard something about putting the least expensive things on the host order as half-price to avoid the flags while still charging them half-price on the most expensive.

I offer unlimited half-price for $1,000 hosts. It's a great motivator. Once I use the 4 half-price options on the 4 most expensive items, it rarely costs me more than $5-7. You just take 20% off their balance from the excess over free product. That's commissionable so as explained above it doesn't even cost me that much even. If they're paying half-price for 4 items, they usually don't want to spend much more out of pocket. And they had that $215+ in free product already.

I glanced once at the math of not using the half-price selections and it just didn't make sense to me. Too much work and no profit.

I wonder how all of these little extras that we offer will work under the new web. I guess Consultant Gift will still be a category. I just hope I can still put the balance for checks and cash on my personal credit card and not have to use the debit card. I put in an order in my name with no products but a charge for the consultant amount owed. I've been earning some nice cash back on that.

Thank goodness this thread is Behind the Apron. I love this category so much!!! :candyheart:

 

[flemings99]

I was told by an upper level that if you were to get caught using a cc on a guest order instead of the debit you would get in trouble. It was a topic that came up at a mtg. I hate that we no longer have the cc option.

 

[chefkathy]

Can you really get in trouble for that? I have people not take them too, but not all the time! I wouldn't do it myself except maybe as a promotion for a mystery host show, but still....

Yes, I was speaking to another consultant today on a different matter and she said that she has seen PC take the trip away from someone for other unethical behavior that helped them earn it.

 

[finley1991]

Yes, I was speaking to another consultant today on a different matter and she said that she has seen PC take the trip away from someone for other unethical behavior that helped them earn it.

I heard a similar story. Just proves that bad apples spoil the bunch for those working honestly. Too bad too... They wouldn't have to crack down if they weren't being taken advantage of.

 

[pckelly]

watch out girls.. I know 2 people who were audited for other things and they were questioned about how come some of their hosts were not taking the half priced items, how come they never sent in catalog shows (putting everything in as cooking shows)...be careful

Yep....me too! See above - that is why at least 1 of those mentioned is no longer with PC.

 

[Sheila]

I think that would be a grey area too. I've never done it and have no intentions of trying it. But then again, I've been taught to never do anything that you wouldn't want to explain in a court of law. It's a pretty good rule and keeps me out of trouble. LOL

 

[ChefBeckyD]

Yep....me too! See above - that is why at least 1 of those mentioned is no longer with PC.

HA! One of those mentioned taught a workshop I took at Nat'l. Conf. one year. In the workshop, she was advocating doing some things that were clearly dishonest. It was so blatant, that people started calling her on it right in the workshop, and many of us just got up and walked out.
I wonder if that was the catalyst for an audit? hmmmmm...

 

[baychef]

Great thread and discussion...Chantelle, my interest peeked as well but like others, it seems a bit shady and like a lot of work (just my luck, I would figure it out incorrectly and lose money!!)

Sometimes I have wondered why some of the top performers have left the company and had become a bit bitter before they left but knowing that they were doing things like this puts a little more of the puzzle together. It is too bad because their basic skills were so good and they had so much to offer to everyone. But gray area methods...not good.

 

[finley1991]

Sometimes I have wondered why some of the top performers have left the company and had become a bit bitter before they left

Greed. And they got caught.

 

[cookingwithlove]

I do remember hearing training on the unlimited 1/2 priced items when it was big a few years ago. I was struggling and not making a bunch of money and the thought of laying out extra money before I got paid was daunting. I don't offer the unlimited 1/2 priced items even when they reach $1000. I am all about being reproducible. If the $1000 host wants to sign up, she is going to feel like she need to spend money to make money. I try to work with what we have. Our host program is awesome. To not lose money, you would have to be at over 30% commission. If you are at 30% commission you are paying 1% for the host's 1/2 priced products after you deduct what you make. Not a lot, but it starts to add up.

 

[Sheila]

I've never done extra or unlimited 50% off items, but I don't get Wendy's 1%, I'm only coming up with 1/2% over cost.Using the DCB as an example on a $1,000 show. It's catalog price is $85. You are offering it to the host at $42.50. When you put it in P3, it's going to be marked down 30% ($59.50) meaning you'd have to pay the other 20% ($17.00) out of pocket to only charge the host 50% ($42.50). So according to P3, the commisionable sales on the DCB would be $59.50 X 30% commission = $17.85. If I'm paying $17 to make $17.85, that's 1/2% profit.I tried it with a bogus $100 item too. P3 price would be $70. Charging host $50. $20 out of pocket. 30% Commission on $70 is $21.00. Spending $20 to make $21 is still 1/2% profit.I wouldn't do it just to earn more trip points. I totally agree that it's a grey area. I also don't ever see myself doing it as a regular incentive for hosts. Now that I've actually sat and done the math I ***MIGHT*** consider it some day on a Mystery Host show to offer extra incentives to the 10 hosts ... but I'd have to put a cap on it for each of them. I couldn't afford for them to buy cookware or knife sets or anything. And if I ever did decide to try it, it certainly wouldn't be a regular thing. More like a once in a blue moon thing.

 

[flemings99]

Sheila, great examples..only thing to factor in is sales tax. I really don't think after the sales tax you'd end up with any extra. For your DCB example you'd be out tax on $17.

Way too complicated in my book.

 

[BethCooks4U]

I have found that most hosts with $1000 shows have enough of a time picking out their 4 half price items and $215 free and by the time they are done with that they either ran out of $$ in their budget or they ran out of wish list. In fact often enough they don't even use all 4 half off choices.I did offer unlimited half off items on a couple of shows and most people who took advantage of it got a couple of spices, things like that. I did have one host who did her Christmas shopping and got a lot. That was the last host I offered it to. I actually lost money because of the tax. Now I point out the amazing host benefits the PC offers and don't offer anything extra. I will occasionally give my host a gift at the show but it's random. At my January shows I gave them their choice of an item up to $12 because my birthday was the 12th (party had to be $300) and I also gave each guest attending the shows a seasons best. They loved it. In February I am offering unglazed stoneware and metal bakeware at 20% off and a free Margarita mix with $60 order. They are loving that special too.

 

[cincychef]

I agree with everyone! I wouldn't have a problem about offering it once in a blue moon as an incentive, but I have never done it, and the biggest reason I haven't is because it does require money up front which I don't have!!! I do offer incentives to fill certain dates or reach certain sales levels and I think that extra half price items would fall into the same category for me because to do it just for extra trip points is way too complicated. I try to make sure that my incentives don't cost me extra out of pocket. ( I like to earn lots of free product to use ) I think this is a great discussion.

 

[CoidgigBese]

As an example, I just submitted a $1,000 show. Host paid for 4 half-price items: Apple Peeler/Corer/Slicer, Tool Turn-About, Basic Nylon Tool Set and Micro Chip Maker. She went over her $215 in free product by $24.50. Subtract her 30% discount ($7.35) and I did $4.90 as consultant gift. Sure, she picked relatively low-priced items. She did her DCB at 60% off.

If they do a knife block set and/or cookware and/or DCB, they really don't have a lot of cash leftover that they want to put out.

I used to pay for the ingredients for my $1,000 hosts since I do the shopping. This is costing me less. Plus, I feel it's a nice gift to hosts who reach that level, and hosts feel I've been incredibly generous.

I will happily stay in the minority doing this.

 

[Sheila]

Sheila, great examples..only thing to factor in is sales tax. I really don't think after the sales tax you'd end up with any extra. For your DCB example you'd be out tax on $17.

Way too complicated in my book.

You are right! I've been doing PC in a tax free zone too long. I still have a hard time remembering to add sales tax! :veryfunny:

Sales tax here in TX is 8.25%, so that's $1.40 on the $17, making it $18.40 spent to get $17.85 in commission that's taxable. Yup, don't see myself doing that ever. LOL

 

[akaskydebil]

Funny - my first conference I went to I engaged in a conversation with one of the 'up theres' who was telling me about not using 1/2 priced items and unlimited 1/2 priced (but without checking the box...) Yep, 'he' too is no longer around.

 

[cookingwithlove]

I think I mess up on my math. If you take it on percentages. The host gets 30% off and you make 30% commission. Basically 30% off = 70% of the cost of the item. So on a $100 item (100 x .70) = cost of the item = $70. You earn 30% on the sale so $70 x .30 = $21. The host pays $50 for the half price and you put in $21. So you are actually $1 over or ahead by 1%. I had the right math, but reversed it.

Personally, if you have to think this hard to run your business, there is something a little shady.

 

[ChefBeckyD]

I think I mess up on my math. If you take it on percentages. The host gets 30% off and you make 30% commission. Basically 30% off = 70% of the cost of the item. So on a $100 item (100 x .70) = cost of the item = $70. You earn 30% on the sale so $70 x .30 = $21. The host pays $50 for the half price and you put in $21. So you are actually $1 over or ahead by 1%. I had the right math, but reversed it.

Personally, if you have to think this hard to run your business, there is something a little shady.

Exactly. I could never do this, because I really suck at math, and I want my job to be as easy as it can be. I do just what P3 tells me to do, and the math always comes out right!

 

[Nanisu]

and yet one of the top sellers of this company, a male, openly does exactly that and HO knows about it...

What I don''t like about the "unlimited 1/2 price with $1K shows" thing is that I don't like someone teaching my team to do it. I just don't think they need to be confused with the idea or have to think they have to tweak the host program to be successful with this company. I had a fellow director who did meetings with me who taught that and I quit doing meetings with her. It just seems creepy to me.

 

[baychef]

and yet one of the top sellers of this company, a male, openly does exactly that and HO knows about it...

Interesting and disappointing as well.

 

[Inomiamenda]

While the math is too tricky for me, I know several people who do it for the trip points. I struggle with whether it is truly unethical because hosts ARE still getting their half price items, and consultants are paying the difference, so no one is getting ripped off.
I think *I* would be more comfortable offering the unlimited half price items at a $1000 show. I would only be comfortable with it by being totally upfront- this is a special I am offering in such and such month. It's something I have considered, I just have to prepare for it up front.

 

[BethCooks4U]

While the math is too tricky for me, I know several people who do it for the trip points. I struggle with whether it is truly unethical because hosts ARE still getting their half price items, and consultants are paying the difference, so no one is getting ripped off.
I think *I* would be more comfortable offering the unlimited half price items at a $1000 show. I would only be comfortable with it by being totally upfront- this is a special I am offering in such and such month. It's something I have considered, I just have to prepare for it up front.

This is exactly what I did when I offered the unlimited half price. I made it clear it was a special promotion I was doing at that time and it was from me. This was offered as an extra bonus to the host. It's just like any other special that we run like when people do the DCB bundles, etc. I don't do it anymore because I want to emphasize the amazing benefits that PC offers and I want to be totally duplicatible. I also rarely offer any other specials for that reason.

I would not even consider changing the half price items earned on their host benefit though. I think that is cheating PC in that it does give extra points to the consultant that they didn't really earn but instead paid for by paying the difference in %. That is too grey for me and I can't afford it anyway.