Ethics in Direct Selling
Anne Crews and Catherine Landman
Summary by Emilie Parylak
Consumers have become so fickle. Today, with access to the internet, combined with one-click buying available on the majority of retailing websites, consumers have instant access to any product or service their hearts could possibly desire. Catalog shopping is slowly becoming a thing of the past, as it is not a fast enough source for products to be purchased and arrive in our homes. Consumers want what they want when they want it, and as years pass, they are becoming accustomed to getting exactly that. Direct selling is a major part of this consumer paradise we have created. Why leave the house, drive to the store, wait in line and choose from a short list of products, when the store could come to you? This form of retailing is ideal for many people today. There is an extensive list of companies that will perform these services for their customers, and two of the best known of these are Mary Kay and The Pampered Chef. College students are coming of age and starting to invite these companies into their own homes, instead of sitting idly by while their parents socialize with their friends and peruse the catalogs and displays.
Starting a business is an extremely hard thing to do, but when new ideas are born and one can strike a new cord with consumers, do things for them that others can’t, they are given a heads up. In the early 1960’s, Mary Kay Ash did just that. She started the infamous Mary Kay not only for financial reasons, but to support women in the work force and to try to secure a career path for women of any age, race or social class. By borrowing a mere $20,000 from her son, she started an empire. Ann Crews came to speak on behalf of the company today, filling us all in on how the company works and its history. She is the vice president of relations for the company, and has a bachelor’s degree in the arts. The second speaker, known to us as Cathy, is the VP of Global Legal and Human Resources for The Pampered Chef. She is from Chicago and attended the prestigious Georgetown University and the University of Wisconsin. Doris Christopher started the Pampered Chef, another Direct Selling company, because of her love for cooking, and teaching others how to enjoy their kitchen space and the time they spend in it. She took out a $3000 loan against her husband’s insurance policy and started what was to be a booming business. There are over 70,000 sellers today working for The Pampered Chef; a company that can easily be called a “billion dollar business.” If a Pampered Chef party is organized, a representative comes to your house and not only displays the products for sale, but also shows you how to use many of them. Foods are prepared by the seller, the host (hostess), and the guests. The atmosphere is pleasant and social, making for a perfect evening with friends.
Mary Kay parties are quite similar, as far as the ambiance of the setting and demonstrations of products. At one of these get-togethers, guests are sat down in front of specifically chosen beauty care products, selected for each of their precise wants and needs. Games are played and prizes are won, often samples from the Mary Kay line, and women get a chance to be with their friends, and also learn about beauty care, as opposed to applying make-up to their faces that could be harmful in some ways. The sellers buy the products wholesale from the company and sell to their customers at a fair retail price. Sellers make money by selling products, making this a legitimate business strategy and far from a pyramid scheme, which it has been accused of being before. The company grosses over $28 million annually and offers a secure work place for women who wish to work full or part time, or just at their leisure. The start up kit to become a seller costs only $100, which is not much to lose if it is decided that the business just isn’t right for you. There are over 1 million independent sales consultants around the world, 73% of them being women, who make up a large percentage of the 47 million associates in direct selling worldwide. Ann Crews stated an obvious fact: the sales force is the blood of the company.
The DSA, or Direct Selling Association, was a constant topic throughout the seminar. Moral, core values and ethics like the ones that this association holds true are hard to come by. The DSA, like many consumer organizations, is there to make sure that their member companies are working hard to satisfy consumer needs as well as wants, in an ethical and appropriate manner. Warren Buffet was quoted as to saying “If you were to do something and you knew it would be on the front page of a newspaper the next day and all of your friends and family will see it, you would want to think long and hard before acting, knowing full well what the consequences will be.” One quote summarizes the mission of the DSA, and I believe that to be it. Any company, organization or association that tends to the needs of the masses, needs to have these kinds of values. Mary Kay, The Pampered Chef and many other cousin companies hold these same values, making us as consumers, happy to welcome them into our homes.