Ordering From Samples or Shopping Directly on the Day

By Belinda Stinson

I've met two really interesting women this year who have both been in the party plan, direct selling industry for 20 years each. Both have managed teams of consultants, setup and successfully run large party plan organisations and both say that you if want to be really making decent money from party plan you need to be independent, carry the stock yourself and have good profit margins.

I may have learned bit by bit but these two women have the industry experience that makes all the difference. I've found it really encouraging talking with them, especially as they are so generous with talking about their lessons learned.

As I sell directly from my kit I was quite relieved and happy to find out that is exactly what they recommend.

By selling directly at the party I only have the one cost of going to the hostess address. If I had to go twice to the hostess address then I would be halving my profit margin. I do accept some custom orders and I post them out. So no double tracking is involved.

I prefer selling out of my kit because customers enjoy and prefer instant gratification and they shop more. This is why it is more profitable because customers get to take more home.

I don't mind carrying the inventory of stock to sell directly from my kit because I have healthy profit margins. I know some party plan businesses put a hefty margin on their goods, believing people don't mind paying lots when there's peer pressure involved but I don't understand that logical and I don't want that reputation for my business.

I think a healthy and sensible profit margin lets me build a successful, ongoing business as my customers feel that I have very good prices for the quality of my designs. I'm able to do this because of the price I buy my components and stock at and that is the key to success.

The key is to find your suppliers of quality products at good wholesale prices and keep them.

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