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Selling Mary Kay Pros and Cons
Unless otherwise stated, dollar amounts are in United States Currency, which has not been adjusted for inflation; Manufacturing plants[ edit ] The primary manufacturing plant is in Dallas, Texas. A second plant was opened in Hangzhou , China , to manufacture and package products for that market. The Swiss plant closed in Cars[ edit ] In , Mary Kay Ash purchased the first pink Cadillac from a Dallas dealership, where it was repainted on site to match the "Mountain Laurel Blush" in a compact Ash carried. The Cadillac served as a mobile advertisement for the business. The following year, Ash rewarded the company's top five salespeople with similarly painted Coupe de Ville cars. GM has painted over , custom cars for Mary Kay. The specific shade has varied over the years from bubble-gum to near-white pearlescent effects. GM had an exclusive agreement to sell cars of the specific shade only through Mary Kay. The cars are offered to distributors as two-year leases, and distributors who choose to buy the cars are only allowed to resell them to authorized dealers. After the lease expires, the cars are repainted before being resold. If those qualifications are not met, then the distributor has to pay for a portion of the lease of the car for that month. There is no tracking by the company of actual sales. Earnings for salespeople[ edit ] There are two ways for consultants to earn money in Mary Kay: These bonuses come straight from Mary Kay corporate and not from said consultants team or units pockets. It does not include income from retail sales nor does it include income from the Mary Kay tools business. In February Mary Kay Canada claimed the following incomes for its salesforce: This figure does not take into account product returns, eBay, auctions, sales at a discount, and purchases by "personal use consultants" which would lower this figure. It also excludes individuals who are in the company for more than one year but do not earn a commission check. Court cases[ edit ] Woolf v. Mary Kay Cosmetics[ edit ] The court case Woolf v. Mary Kay Cosmetics was originally decided in favor of the plaintiff , Claudine Woolf. In doing so it marked the first time  that workplace rights could be applied to independent contractors who worked from their home. This decision was stayed and then reversed after an appeal. The Supreme Court denied certiorari on 31 May Woolf contended that her firing was illegal, because of her medical condition — she was suffering from cancer. The company claims that Touch of Pink interferes with its business by offering to purchase inventory from discontinued consultants, and that Touch of Pink's use of the Mary Kay trademark in reference to Mary Kay products it sells is deceiving. Animal testing[ edit ] In , the company announced a moratorium on animal testing of its products, after pressure from animal rights groups. They were among the first in their industry to do so and to sign the PETA pledge. In , when the company expanded into China, the Chinese government required Mary Kay to comply with Chinese law that requires animal testing on all health and beauty products. The Chinese government carries out this testing, not Mary Kay.
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