Navigating Ethics in Direct Sales: A Discussion

[WendyAebi]

OK, I'm not even sure exactly what my question is going to turn out to be so please bear with me

I have a show with an outside order of $41. I do not have the jar opener. I am trying to decide if it is ethical of me to add $9 worth of whatever products I want to this order to get the jar opener. Since HO now has the perforated order cards, the host and the guest would both know so it's definitely not sneaky. I'm about to convince myself that it would NOT be ethical for me to pay just a little and get the bonus when the guest paid 80% of the required amount. Maybe I will add a jar opener for me and give her the free one.

Also, I have another question in this same vein. Since becoming a consultant, I've hosted several of my own events, so I have several past host numbers connected to my name. I did the events under my own name. Is it okay for me to add an order to a host's show, using my own name and my own PHD number? If I did that, I would be getting the 10% off that Pampered Chef says I'm entitled to as a past host, and I would be getting the
commission that PC says I'm entitled to as a consultant. Do you see what I'm asking? Situation A is okay as far as PC is concerned, and Situation B is okay as far as PC is concerned, but I can't figure out if PC is okay with A & B happening at the same time.

Then there's the question of adding to a host's order to get their discount. I know it's widely done and I've heard lots of directors say that it's the way to do it. Here's what creeps me out a little--and this is hard for me to put into words, so I hope nobody will be offended--*if* something does happen and it breaks, does it look make us look sleazy to our past host to call and say, "hey I need you to call *my company* for me and tell them that this broke because it's on your receipt." Or, I guess, we could call ourselves and say, "I'm Susie Pasthost and my product broke. Please send the replacement to my consultant."

Please give me your thoughts on what you think about all these scenarios, whether you think it's okay/not okay and why. (And thanks in advance for helping me sort through this!)

 

[BethCooks4U]

I have a show with an outside order of $41. I do not have the jar opener. I am trying to decide if it is ethical of me to add $9 worth of whatever products I want to this order to get the jar opener. Since HO now has the perforated order cards, the host and the guest would both know so it's definitely not sneaky. I'm about to convince myself that it would NOT be ethical for me to pay just a little and get the bonus when the guest paid 80% of the required amount. Maybe I will add a jar opener for me and give her the free one.

We are not supposed to do that but I know of consultants who will ask the guest if she wants to add to the order to get the free jar opener and if she says "no" they ask her if they can add to the order so the consultant can get the jar opener.

Also, I have another question in this same vein. Since becoming a consultant, I've hosted several of my own events, so I have several past host numbers connected to my name. I did the events under my own name. Is it okay for me to add an order to a host's show, using my own name and my own PHD number? If I did that, I would be getting the 10% off that Pampered Chef says I'm entitled to as a past host, and I would be getting the
commission that PC says I'm entitled to as a consultant. Do you see what I'm asking? Situation A is okay as far as PC is concerned, and Situation B is okay as far as PC is concerned, but I can't figure out if PC is okay with A & B happening at the same time.

We can not use that past host discount. If we stopped doing PC we could then use it but as consultants we can not get past host benefits. We can order anything we want for 20% off (new consultants discount) in a personal order.

Then there's the question of adding to a host's order to get their discount. I know it's widely done and I've heard lots of directors say that it's the way to do it. Here's what creeps me out a little--and this is hard for me to put into words, so I hope nobody will be offended--*if* something does happen and it breaks, does it look make us look sleazy to our past host to call and say, "hey I need you to call *my company* for me and tell them that this broke because it's on your receipt." Or, I guess, we could call ourselves and say, "I'm Susie Pasthost and my product broke. Please send the replacement to my consultant."

We are not supposed to add to a hosts order either but again I know of consultants who ask the host if it's okay to add to their order.

As far as returns or adjustments are concerned. I always do the call to PC for the host. I tell them what the problem is and they ask me if the order should ship to the host or somewhere else.

Don't lie. It's not worth it. This company is built on high values and if we don't live up to them we will tarnish PC's reputation.

One thing I DO do is if I am buying something as a gift for someone else (like my daughter-in-law or a good friend), I will order it in her name. It IS for her and that way she gets the receipt and I get the sales credit. That is not against the "rules".

 

[WendyAebi]

We can not use that past host discount. If we stopped doing PC we could then use it but as consultants we can not get past host benefits. We can order anything we want for 20% off (new consultants discount) in a personal order.

You are exactly right, Beth. I found this information in Recipe for Success after I posted. (It's a section toward the front of policies & procedures under Consultant-hosted Shows, if anyone else wants to read the exact language.) I like the way you think--I want to be known for my ethics as a consultant...I believe that when I'm honest in the tiniest details, people will be also believe me when I say, for example, that the Professional cookware is worth every penny of the $440 price tag.

 

[pamperedbecky]

One thing I DO do is if I am buying something as a gift for someone else (like my daughter-in-law or a good friend), I will order it in her name. It IS for her and that way she gets the receipt and I get the sales credit. That is not against the "rules".

I think this is the best solution when you know you want to order something for a friend or as a gift. Being able to give them a receipt (and suggesting to put it under their silverware tray) will save you and them the hassle if they need to track it down if something happens. If it's not in their name, it's difficult for you as the consultant to track the order down and print them up a new receipt if they lost theirs.

Just FYI-The trick to looking up a particular customer's past orders is easy in Pampered Partner. Under "Print" and then "Generate Reports", choose the "total items sold history report." Pick what dates you want to search, then enter their name in the contact section, then click "ok" at the bottom. It'll show a report of everything they've purchased, including the item number, the show number, the show date and the price. When someone told me about this trick LONG ago, I thought it was the neatest trick if you ever had to look up or print up a new receipt for someone. I just thought I'd share.

 

[Wildfire]

I completely understand your dilemma and I appreciate you reaching out for advice. In my opinion, it would not be ethical for you to add additional products to an outside order in order to qualify for a bonus item. The guest has already paid for their order and it would not be fair to them to add on additional items just for your own benefit. As you mentioned, the perforated order cards make it clear to both the host and guest what is being added to their order. It would be better to purchase the jar opener separately or offer to give the free one to the host as a gift.As for your second question, I do not see any issue with adding an order to a host's show using your own name and PHD number. As a consultant, you are entitled to the 10% discount and commission, and it is not against any company policy to do so. However, I would recommend being transparent with the host and letting them know that you are adding your own order to their show.Regarding adding to a host's order to receive their discount, I can understand your concern. However, it is a common practice in the direct sales industry and it is not considered unethical. As consultants, we are responsible for providing excellent customer service and ensuring our products are of high quality. If a product does happen to break, it is our responsibility to handle the replacement process for our customers, regardless of who the order was placed under.In summary, my advice would be to always prioritize the satisfaction of your customers and be transparent with them in all situations. It is important to maintain ethical standards in our business practices to build trust and credibility with our clients. I hope this helps and I wish you all the best in your business.Sincerely,