Disadvantages of Direct Sales Companies
Are you thinking about joining a direct sales company?
Many of those interested in fashion and having entrepreneurial spirit have been attracted to direct sales companies as an attractive option. Direct sales has a benefit of allowing the entrepreneur to be introduced to sales tactics, having a platform and a system to work within. However few are able to achieve success equivalent with the time and work invested.
Working with a direct sales company gives the illusion of running your own business, but it’s not true ownership. You are not free to adapt your selling strategy to what works for you. Direct sales represents less than 1% of the retail marketplace. With Pinktownusa, you have all the freedom and ownership. Selling is hard work. If all the hard work is put towards building your own brand, your chances of success will increase exponentially. Pinktownusa supplies you with trendy accessories at great rates and prices that are competitive. Our recommended markup is 2.5 times your wholesale price. When you have your own brands, you keep the profits. In addition, we have the same range of styles liked by paparazzi, fair trade and Traci Lynn fans.
Below are a few major disadvantages to direct sales companies
Difficult to reach wide customer base
Compromised personal life due to time required to attend sales parties and events
Logistical issues from storing and transporting your product and samples
Often require recruitment for advancement
Prone to failure
DrawBacks of Selling High Range
In our current pandemic environment, direct sales parties are a thing of the past. Direct sales parties do create sales pressure and they can be fun. Getting together with a group of friends or family is always a good time, but they're also more involved than they seem. You’ll often need to provide samples and snacks.The parties themselves often take a few hours and these days time is money. Your friends might enjoy the first party or two, but the events get boring quickly. And honestly, if somebody spent $100 or more in jewelry at one party, they’re probably not going to buy much from the next event. The variation in price may help with sales, but you still need a customer base that can afford the items.
DrawBacks of Selling Low Range
At competitive pricing like that of Paparazzi you could probably sell most pieces, and some would probably sell fast. However, the amount you get per sale is low since the retail price is capped at just $5. You will need to sell 1,335 pieces to get a monthly income of $3000. That’s a lot of jewelry!
Pinktownusa is not a direct sales company. We do not provide our marketing materials as we are brand agnostic. Jewelry and fashion accessories sourced from us can be rebranded by your business. If you have been a design or style consultant for some time and are ready to establish your own identity and brand we can be an excellent sourcing partner.
