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I don't have either the current annual Stampin'Up! catalog or the holiday one that has yet to go live, but I've been watching the threads discussing these things and it occurred to me to wonder if the "party plan" type of selling is on its way out? I get that it is significantly more wonderful to touch all of the products and play with them and everything looks better in person than in photos, but...
While other companies that either have their own online store and/or that wholesale to those who do are keeping their prices low (or, at least, reasonable), SU! and other similar companies (A Muse, The Angel Company, Fun Stamper's Journey, Close to My Heart) seem to struggle to keep prices in control, keep rewards programs going, or even to stay in business.
Stampin'Up! was my first introduction to stamping as anything but a specialized stationery store item, and I was loyal to them and also to Close to My Heart for quite a few years. Everything evolves, though, and I'm wondering if this sales model is anywhere close to running its course.
There are loyalists, of course, who care more about supporting a company they love than the pricing, and that's fine. This is just a general observation/question. And don't get me started on the Chinese knockoffs... Thoughts?
My observation is that those demos who have transitioned to doing business online have thrived. They utilize Facebook, YouTube, blogs, and Instagram to keep customers engaged. They develop a relationship with their customers using technology and create a fun experience for them. I believe many of those buying from direct sales companies/demos are doing so not just for the product, but for the relationship and experience.
I have been a SU! demo for 6 years, but I am my only customer. I have not attempted to sell to anyone. I like being a part of a team - we have challenges and meetings and we celebrate each other's accomplishments. I attended one SU! demo event and had a fabulous time. I also like how being a demo helps me manage my craft dollars (I buy from just one company, I buy only the sales minimum, etc.).
I do think home parties have been dying, though. I was invited to a Partylite one a few weeks ago and that was the first invitation I'd gotten in at least 10 years (I do not burn candles so I did not go). I loved going to Pampered Chef parties!
I have wondered the same thing. I asked a few coworkers and they shared that they don’t like going to those parties for the most part because they don’t want to feel obligated to buy anything. It’s not only about money, it’s about having too much stuff.
I wonder if the feedback is different in other communities where people get together a lot or where handmade crafts are a bigger deal.
I feel like the growth of online shopping has been key in the decline of home sales. Years ago there were all kinds of parties, Tupperware, jewelry, make up, linens... I haven’t paid much attention to the lack, if you will, of invitations. I usually don’t go to those things! But now that you brought it up, you are right. There is so much available at one’s fingertips online. StampinUp is 30years old and would have started prior to the internet. Also back in the day, people were more rural and less apt to travel to shop in the bigger stores. So if a salesman came to you, that was a highlight. I faintly remember as a kid the Watkins man coming to our place.
I wonder if CEO’s have these discussions in their offices; I bet they do. You have to adapt to stay current. I know for example StampinUp is expensive, once they put stuff on the clearance rack, it’s finally affordable.
I still shop old school for most things. I don’t order online and I usually host a workshop or 2 every year so I can get new product as my reward. I do like to see, try and experience new things before I purchase. But I think I am in the minority.
In our community, there are still the odd Home based businesses, in my staff room at work there is usually a catalogue of some kind laying around seeking an order or 2. ThirtyOne bags, Epicure, Scentsy, Stella and Dot... but it seems like most people don’t bother to host an evening, they just have a catalogue party and skip the work. I think busy lives also have a lot to do with it. Just simpler to relax with your laptop and order from home with your feet up in fuzzy slippers.
Interesting topic. It made me remember all kinds of home parties I used to go to and have heard of for years.
Thanks for joining the discussion, ladies. I think part of my musings included the thought that prices had to be higher to sustain a business that had demos, had to have incentives, produce catalogs (and ship them) and things of that nature. I know that the offerings for Sale-a-bration or having parties have been reduced quite a bit from what they used to be, and papers and dies have gone up quite a bit, for example. I can see both the pros and cons of direct-selling, but continue to wonder how sustainable it will be...
i agree. One of the things to consider in our industry is the availability of so much info online, too. I can watch hundreds of videos on YouTube and get so many takes on how to do each thing. A demo provides valuable help but they have a lot of competition in that sense.
I think the in-home party/workshop idea is on the way out but people will still get together at classes and projects, either at a hostess's house or the demos house. When I did classes years ago, there were still many stamp and scrap stores around so I had to make mine very affordable and fun. Now, with few, if any, stores to go to for stuff, classes and trying new products demos who do classes and clubs seem to be doing OK.
Mary Beth
Thanks for joining the discussion, ladies. I think part of my musings included the thought that prices had to be higher to sustain a business that had demos, had to have incentives, produce catalogs (and ship them) and things of that nature. I know that the offerings for Sale-a-bration or having parties have been reduced quite a bit from what they used to be, and papers and dies have gone up quite a bit, for example. I can see both the pros and cons of direct-selling, but continue to wonder how sustainable it will be...
The hostess rewards from SU! have definitely decreased but the Sale-A-Bration offerings have increased. It used to be a choice from 4-6 stamp sets with every $50 order; now there are at least 12 things to choose from and they range from paper packs to stamps to ribbon to embossing folders, still with a $50 order. This year, they offered dies with a $100 order (that was new and made me wonder if SU! was slowly transitioning to a higher order amount to obtain SAB goodies).
As a purely hobby demo and numbers geek, I figured out how to maximize my demo discounts and hostess rewards so that I never pay for my basics like adhesive and envelopes. I have not paid for those items in over 5 years. So from my perspective, I find what I am doing with SU! to be sustainable.
But to your point of the business model as a whole being sustainable......I admit I have wondered it myself. Looking at how fast the online demos have reached sales milestones, I wonder if the direct marketing sales are becoming concentrated in a relatively few number of demos. I think, however, that there is room for all kinds of business models. The shares of the pie might change, but remaining flexible, adaptable, and responsive to what customers along with a strong work ethic is key.
I live in the heart of the MLM jungle and am here to tell you, they aren't going anywhere. Living where I live, I have become hyper sensitive to this way of selling products and, admittedly, quite jaded. They bank on people's need to feel like they are part of a family and there will always be people who have that need. It is almost cult like, the loyalty is incredible. People are willing to pay more for less as long as they surround themselves with others who are doing the same thing. People also LOVE free stuff and with this type of marketing, there is ALWAYS free stuff!! If your order totals $80 and you know that you will get a free gift at the $100 mark, you are probably going to buy something else. Even if the free item is something that is not worth the $20 more you are spending and might not ever use. Once that "incentive" loses its profitability, it will change. By raising the threshold for the free gift, or lowering the quality of the gift itself. My prediction? It might change, but it will always be around.
__________________ "For the strength of the Pack is the Wolf, and the strength of the Wolf is the Pack" ~Rudyard Kipling my gallery
MLM's are an awful way to push product that prey on the socially and financially vulnerable. They're predatory and only truly benefit those who are at the top of the pyramid or born salespeople. That's why I won't buy Stampin' Up stuff first-hand, only stuff I find at charity thrift shops.
I wish MLM's would all go away but I doubt that'll happen any time soon.
Interesting topic! I have definitely noticed the lack of "Home parties" in the last 10-15 years but I had attributed it to my age. 30-40 years ago, I was invited to AT LEAST three parties a month. I have a lot of overpriced stuff!
I will not forget a coworker years ago saying to a "party hostess" when she invited her "why do I have to bring my checkbook every time you invite me to your house?" I thought that said it all. Home parties prey on people attending (and buying!) under the guise of friendship and the fear that no one will attend if they have their own home party.
Why do they even call these "Parties"? I don't know anyone who ever had fun at one.
Disclaimer: several years ago I said almost this same thing and was soundly chastised by a SU demo here who told me I was negative and she loved home parties. So who knows, really?
Disclaimer: several years ago I said almost this same thing and was soundly chastised by a SU demo here who told me I was negative and she loved home parties. So who knows, really?
It's part of formula. If you aren't successful it's because 'you aren't positive enough' and 'anyone that doesn't support you isn't worth your time'. Ruins families, financially and emotionally. I know there are a few Aunts we no longer visit or speak to because every invite or visit turned into a captive audience sales pitch, for one of their MLM's or their kids overpriced chocolates / candies / what-have-you-fundraisers.
By no means am I adverse to supporting school programs but the companies they bring in to make kids peddle chocolate are as bad as MLM's. Most of the money doesn't end up benefiting the school at all. Would rather do the good old fashioned bake sales, at least then you know all the profits actually help the kids, and the treats are usually tastier!
The MLM sales model is definitely morphing but I feel like it's still going strong. There are several MLM companies that have been started in just the last few years that are growing so MLM' s definitely aren't dead or even dying. They're just different. There is alot more focus on online parties because people like the stuff but they don't want to have to take 2 or more hours out of a day to attend a demo.
I don't feel MLM's prey on anybody. We are all adults and can make our own choices. I've never felt obligated to buy something when I've been invited to a "party".
In my experience selling for multiple different MLM companies over the years an MLM business is only as successful as the time you put into it. But it's a work smarter, not harder situation. When we were Amway distributors we were netting (6 months in) $1000 a month (just from sales not from downline) after expenses. We did this for about 3 years and then we transferred to a new command, then less then 2 years later we transferred again and between that and other life stuff we just weren't able to work the business in a way that it would be profitable for us so over the next year and a half our income slowly dwindled and we finally said enough and quit. By the time we did quit we had several downline and two of them had started to surpass us in sales while we were still earning that $1k month. So the notion that downline can never surpass their upline is a bunch of malarkey.
I've been an SU demo for almost 10 years and my sales have been all over the map. When I'm consistent about working it, my sales increase, when I get lazy they decrease. That being said, I haven't done a workshop in over 6 years because workshops just aren't profitable for me. Classes are though so that's what I focus on. I've been working it more consistently lately and I'm seeing an increase in income. A small increase at this point but an increase nonetheless.
So yes, the model is changing but I think there will continue to be moderately to very successful individuals in the MLM business for quite some time to come, and now that I'm dedicated to building my business I plan on being one of them ;)
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From my experience SU has never been a home party type experience. I've been going to SU classes for 12 years but never to a "home party".
In essence the demo is the hostess as they gain the sales benefits. My demos charge for the cost of the class and None of them require a minimum purchase or to join a club
( yes, I attend more than one demo's classes-that's how much I love them)!
I've gained so much from these classes! Friendship, fun, relaxation, lots and lots of knowledge, laughter, a creative outlet, etc. There's no way I have this kind of fun sitting at my computer ordering online or watching a you-tube video, or stamping alone!
I suppose I'm missing the point as it's mainly that the MLM model is overpriced and on its wat out. Yep, home parties have gone the wayside. life is about change! SU seems to be going strong tho!
__________________ All I want is the chance to prove money won't make me happy!
I stopped going to MLM parties years ago because I bought even though I really didn't want anything. I'm a SU demo and I never did one party as I preferred classes. People felt comfortable that they knew I would have my catalogs out but I never pushed them to buy.
My sister sells oils and almost everything she does is through her FB page. She has had success with having classes. Based on what I'm seeing with her group the business is growing which leads me to believe it's about what is new or trending in the market. The big difference is that a person will use up their oils and need more whereas with stamping, we have products that are useful for years so if it wasn't for wanting something new we don't really have to replace things that often.
I don't feel MLM's prey on anybody. We are all adults and can make our own choices. I've never felt obligated to buy something when I've been invited to a "party".
Well, I agree they don't "prey"...but honestly if I accept an invitation to go to a party that a friend is hosting, I do feel obligated to buy something. The model kind of implicitly depends on that -- that the social network of the hostess will want to support her or use peer pressure to buy something. (YMMV, of course).
Lots of interesting input - thank you all! I can see that I'm not the only one who has mixed thoughts about all of this, so there's that... It would appear (from this conversation, at least) that there are plenty of people on ALL sides of the issue, and it also appears that it largely comes down to individual experience and/or preference, which is true about most things, actually. I love SCS - such a diverse group and views to match!
I think the home party business probably peaked about fifteen years ago, and it's been a slow decline ever since. Take, for example, Longaberger, which is now out of business. The companies that can maintain a thriving online business are continuing to do well, and the consultants that market this way seem to do just fine.
I did the SU demo thing for many years. And then, I branched away from SU, sold off nearly everything, and started buying as a "free agent", if you will. Honestly, I saved myself so much money in the process.
Here's the thing: I still like Stampin' Up, and I think their catalogs and offerings have been really nice in recent years. If money were no object, I'd probably buy a lot from them. But holy smokes! I saw a stamp set/die bundle in a recent catalog that I liked, but it cost over $75, and that's before figuring in shipping and handling and tax. Outrageous! Who can afford that?
I agree, classes are better than parties. I did enjoy the SU classes I attended a few years back, but I did feel guilty that I wasn't placing orders to help the demonstrator.
Okay.........what does MLM stand for? Thanks.........
Multi-Level Marketing.
Basically any business that operates primarily through 'agents' - individuals who are paid on commission rather than employees. They sell outside of the regular retail environment - and here's the key part - recruit others to do the same, creating a pyramid of salespeople. Those recruiters earn a percentage of their recruit's sales. There's almost always a 'buy-in' where you have to purchase product to become 'your own business owner'. They often exploit the sense of social obligation towards people we know to drive sales.
Product/service quality varies, from 'complete scam' to 'nice but overpriced'.
I agree, classes are better than parties. I did enjoy the SU classes I attended a few years back, but I did feel guilty that I wasn't placing orders to help the demonstrator.
Actually, if properly priced, classes can be more profitable than orders. When I was a business demo 10 years ago I made a higher margin on my classes and events than I did orders.
As I was planning my SU order yesterday, this thread came to mind. I did have a few thoughts, for what they're worth...
I think that a business like SU can keep going, even though prices are higher, IF they can keep their catalogs fresh and upbeat, and in tune with trends. I've had classes, and been to classes with my upline, and if I like what is being made you can't keep me away. I've been in hostess clubs and I think they work well as long as the demo can meet the styles wanted by her group and keep adding customers.
I am with those who say that it isn't something that a demo can sit back and do no work. You have to keep up with your business. I can't believe the number of demos who have hit the million dollars in sales just this year. They have been consistent in making their business work.
However, I think it would be difficult for a new MLM company to make it over the long run because everyone is starting from scratch.
Not a knock, just an observation...
