Sunday, July 29, 2012

My Starter Kit is Here!


I received my Paparazzi Starter Kit today. I was like a rabbit bunny, hopping to the door at the sound of any truck. It didn't make matters better that my husband said UPS usually comes around 2-3 and they came at 3:45, making 2 hours of my life completely wasted on waiting. So maybe I'm a little too excited. But I am proud of myself for doing something. Anyhow, here is a very poorly lit picture of my 100 pieces of jewelry displayed for my upcoming launch party in 2 days!



Fun right? Nevertheless, I wanted to post a breakdown of what I got in my box because I struggled finding out what was really in there before I signed up. I am going to save my opinions until the end, but as I said from the beginning I promise I will be honest. Here is the breakdown of what comes in the Paparazzi Small Starter Kit with Hair Accessories (at least for the moment)...

My Starter Kit:

Accessories: 

  • 50 Necklaces: 7 Black, 5 Silver, 6 White, 5 Brown, 6 Pink, 5 Purple, 6 Blue, 5 Green, 5 Red
  • 10 Rings: An assortment of silver flowers, pretty handmade looking pieces, and 3 very kiddie looking rings
  • 5 Bracelets: 1 Multi-colored shell, 1 pearl and metal, 1 almost chain link, 1 chunky beads, and 1 simple green bracelet. 
  • 5 Earring: 1 crystal chandeliers, 1 black diamond shaped, 1 metal flowers, 1 very large brass flowers, 1 strange industrial looking earrings. 
  • 15 Hair Clips: Great assortment of color, style, size, and material. 
  • 15 Headbands: Another great assortment of color, style, size, and material.

Business Materials:

  • Master Repair Kit: Great and necessary. I used the pliers a few times on my necklaces right out of the box, and if you are traveling with your jewelry this would certainly come in handy.
  • 50 Sales Bags: I would highly recommend them with or without a kit.
  • Paparazzi Book: I've read it thoroughly and though I am glad to have it. Lots of good information, regulations, and ideas. I think you can get away without it, but you may learn some things the hard way that could have been avoided with this book. 
  • 25 Display Hooks: If you plan on using peg board these will come in handy but there are so many cheap alternatives to the hooks (like paper clips).
  • 25 Pack of Receipts: I don't think I will ever use many. I think this is more of a personal preference though and you may want them.
  • 25 Party Invitations: Cute and useful, though I could as easily print some out...
  • Compensation Plan Brochure: I find this pretty unnecessary since I could just print out the PDF on the site, but I also know I will use it in soliciting people to join. 
  • New Consultant Application: I find this almost totally unnecessary but maybe someone somewhere will use it...

Overall: 

OK truth time... I believe that the kit is good for many people, however I don't think that it will work for everyone. For me, I think I would sell more if I had hand picked the inventory. I 100% believe spending at least $300 on inventory to begin with is the way to go no matter what. But for the North East this collection missed the market a bit I think. The proportion of other jewelry to the necklaces was off for me and my friends and family (my first customers). I'm sure in other areas it would sell differently but I was overall a little disappointed with their kit choices for necklaces since 4 very similar styles were duplicated in 5 colors, limiting the diversity. I truly think, again in other areas, that these might be their best sellers... but they are not really the North East style which is unfortunate because Paparazzi really does carry a lot of styles that are. With a little more variety and cutting back on the necklaces to make room for an extra bracelet and earring kit this box would be perfect. And this box could be completely perfect for you. But since my goal is to get people started off on the best foot possible I had to be honest.

Like I said, I do however think that this kit would be good for some. If you are worried, here is an alternative plan and what I would have done (but again, don't go out and do this thinking I know what I'm doing... I'm new too).

Sign up cost: $40
7 Necklace Kits: $96.25
3 Hair Clip Kits: $41.25
3 Headband Kits: $41.25
2 Bracelet Kits: $27.25
2 Ring Kits: $27.50
2 Earring Kits: $27.50
100 Bags: $4.00
Master Repair Kit: $5.95
Paparazzi Business Book: $12.95

Total Product: 95 Pieces plus 4 hostess rewards
Total: $324.15
Tax: $33.25
Shipping: $10.00
Total: $367.40

Difference from buying the starter kit: $22.40 more 
(or cut out the book and borrow one from your sponsor, I have one!)

It's up to you, and I would talk to your sponsor honestly before signing up, it's their job to set you out right. I don't think that this kit will stop my sales, but I do think I would get a lot more if my collection was hand picked in my case. And with that Paparazzi suicide I will bid you good night!

Wednesday, July 25, 2012

Waiting for the Box!

In my waiting for my small Paparazzi starter kit I thought I would write about what Paparazzi start up really costs. In my searchings I never found it. Tax? Shipping? Other costs? Basically, what do I need to prepare for. Since I'm new I am not the expert. A year from now I will know all of the ins and outs and this post may be quite different. But here is what my research has taught me along with my first buying experience with the company...

The Kit:
Frst off, actual cost. What I did was get the small starter kit. I think for me it will work perfectly. I don't have a lot of capital but I want to start it of at least a little "right" and put some commitment into it. So considering you get the small kit or buy at least $300 worth of inventory and supplies, your totally cost will be:

  • Cost of the kit: $300
  • Taxes on $500 worth of product: $35 for my 7% sales tax
  • Shipping: $10 flat shipping costs for any purchase under $500 (over is free) 

Tangent: A lot of women charge $5.50 an item. That would cover your sales tax and shipping, but remember you'll have to cover the extra sales tax to your state for the extra charge. Say for me, I could charge $5.14 an item to recover shipping and the sales tax would be $0.36 making the total cost with tax $5.50. But now every item I sell I will have to cover the extra $0.14 for sales tax to the state to be in the right. Or, I could charge $5.35 and we scott free, or $5.00 and eat the tax cost. Your choice. 

Total so far: $345

Marketing:
You'll also want to market yourself. Where I started was a $10 domain name and built my site through Google Sites, which helps my branding because it hosts my email as well and helps me organize all my documents online in one place for free. Next there are business cards. I went for the free ones from Vista Print which is a little less than $8 shipping. So total it up:


There are a lot of other materials you can purchase on the Paparazzi site too, when you're ready. For now I am waiting on profit to invest any more than that. Assuming you have a printer for printing some other materials you want to use at parties and shows, you should be good for starters. Make sure if you're on the JemPro team (sign under me and you will be) and join their facebook group. There are a ton of free printables there. For all intensive purposes, say you don't have a printer. $5 will go a long way at the local library.

Total is up to: $368

Displays:
Finally, you'll want to make displays to have your initial launch party and parties afterwards. These will get much bigger with events, but for starters, take it easy. I am blessed to randomly have access to a merch display that I plan on attaching my items with either paper clips or some other type of pink pretty clip, so my cost will be about $3. Assuming you aren't as fortunate in this department, here is a link to a peg board display created for under $15, so lets say yours is $20. If you have a handy husband or willing friend you can probably find scrap and materials for a lot cheaper. You can check out my Pinterest board for some different makeshift jewelry displays too. For headbands I plan on using a pretty pail I got at the dollar store for (you guessed it!) $1. And for rings I am filling a tray from my kitchen with black beans (it looks cuter than it sounds) and laying them out, another easy Dollar Store buy for $1 and another $2 for beans. So all in all you're looking at: 

  • Peg Board: $20
  • Headband Pail: $1
  • Ring Tray: $2
  • Paperclips: $2

You can go much crazier than $25. I eventually will for sure. There are bracelet stands at Walmart for $6 I'll want, a necklace display for showcasing a look, etc. I'm holding off for some profits. You may not want to wait. 

Total is now: $393

Launch Party:
So I think anyone will agree, the easiest way to start selling a product directly is to have an open house. I will write about my actual open house when it comes, but for now lets just talk money. First, it's super cheap. I plan on spending lest than $10, so for the purposes of an even total lets say $7. I plan on cutting up fruit ($4), making cookies ($2) and serving coffee ($1). Yours may be more, especially if you're not a baker, but really you don't have to do anything but lemon water and some biscuits. I also plan on borrowing from my grocery budget $30 for change at the party, but that I will pay back after so I wont count it in the total.

So, drum roll please...

Final Total: $400

I plan on selling 35 pieces, making almost $200 back before I order new inventory. I plan to invest all (aside from $10 I will put aside for income tax just incase) of that back into inventory which will get me 50 pieces and 2 kits of starlet shimmer with tax and shipping. After that I will have around 115 pieces. More importantly, after your first order you (of more than 25 pieces) you will be listed on the corporate website the month following, and stay there as long as you purchase 50PV (25 pieces) a month. You just keep recycling that income into your inventory until you feel you are at a comfortable place inventory wise. Then you can recoup your costs and let the money making begin! I can't complain about that!

Thursday, July 19, 2012

So It Begins...

Ok... I signed up. I go full throttle when it comes to things I am excited about, and I am so excited about Paparazzi. Since "About Me" covers my story a bit, I wanted to tell you why I picked THIS one, over so many. First, let me take you through the things I loved about this company. 

First off, the biggest thing because without it there would be no point... Paparazzi is actually cute! Sure, there are style's I wouldn't pick for myself, but there is no style that wouldn't look great on someone. There are pieces for any genre of woman I can think of. From tweens to seniors, I could sell SOMETHING to anyone! There are preppy hair pieces, urban chunky brass and leather, eclectic bright feathers, simple strands and clean lines, big chandelier earrings and cocktail rings, elegant show stoppers, perfect pairs for the office, and lot's that would transition day to night. And it seems every one of them is truly interesting. That sounds like a lifeless statement, but I think I would seriously notice every piece I've seen. I have lots in my jewelry box that wouldn't happen with.

The second most important thing to me is... Paparazzi is so affordable! As a stay at home mom with a husband working at a church, it is an understatement to say I rarely spend money on anything extra. Eating out is a once a month delicacy and going shopping means getting groceries in this house. How in the world am I going to ask my friends and family to spend $50-$100 at a party when I could spend only a quarter of that few and far between? Everything here is literally $5.50. Ok, not quite everything... The kids items are $1 flat a piece. A DOLLAR! You can literally go to a Paparazzi party, purchase something and come home satisfied with product in hand that day, accessorize with your new buy, and get complimented all for change I can probably scrounge up in my various cushions and jars of coins.

My third excitement... Paparazzi is as easy or as complex as you want it to be! You can sign up for $40, buy 7 collections (5 pieces each), sell the 35 items for $5 and recoup your cost right there. Or you can buy a kit (I went back and forth but after speaking with consultants I am SO glad I did) and make $200 on the smallest one. Or if you own your own business like a boutique, salon, clothing store, consignment shop, etc. you can sell large quantities under your business and make a huge profit. You can set up whatever kind of system works for you as long as you don't low blow your competition with prices under $5. The company has set you up with open horizons instead of putting all of these rules and structure around you. You are required to buy 100 pieces within a years time. If you buy the smallest kit, you're already done for the year "quota" wise (plus the $40 sign up fee is waved). I like the flexibility I see!

Ok, you've hooked me... I want to do this. 

Wanting something and actually deciding on doing it are 2 different thing. There were somethings I was worried about. At this point you're saying "WHY would you EVER tell people all of the not so comforting things about starting a direct sales business? You said you were once in marketing?!" Because here I intend to operate with integrity, to be honest about my journey AND because I want you to see how you can overcome these "standards" you come to know about a "normal" direct sales company. Because I honestly want to succeed at this and I think other people would genuinely want to as well. 

So, the things I was not so excited about... There's no catalog! No online inventory, no "here's all the huge number of things I can give to you", no volume but your own. To my analytically wired and sort of scardy cat self, this sounded like a big task to overcome! How do I communicate with my clientele what they should buy? Then I sat back for a few minutes. I get to be in control. No one is asking for me to get them what I don't have and no one has to wait for their order and twiddle their thumbs. Is'nt that the thing I hate most about other orders I've made with other consultants? Ok, no catalog fear conquered. But no online inventory... This is hard for my digital marketing background to deal with. Commence "sit back" again. I get to control my products available and I am allowed to use almost any digital means necessary. Facebook can become my playground! I can create a website that costs me nothing but a yearly $10 domain charge! I am KING of my JOB. End online attachment. Honest truth, I will have to work more without a corporate site of my own, taking time to build an empire from meager beginnings. But by having that control I get to brand myself, control what my customers see, socially market the way I want, and when I do a good job my business can be more successful than a corporate website would ever do for me. About the time this revelation emerged I figured it out. THIS is why I get to buy a piece of jewelry, make a 45% profit, and charge only $5.50 with everything included. This is how Paparazzi does business, and this is why I love the structure of the company. You work harder but you keep your costs down, you keep your consultants options wider open than I've ever seen, and you cultivate a PERSONAL touch to your brand. Brilliant.