Party Planners - can you help me out?

Wishfairy2010

I've been asked by a local lady if I sell through party plan as she would like a party and knows friends who would too. This got me thinking that maybe I could do something along those lines as I used to run my own pp jewellery company so know the basics.

My question is... What % comission do you earn and what % of customer sales is paid as hostess comission? If I remember rightly your commission is on total sales BUT you do have to pay the hostess out of your commission?

It would really help me if you could give me the basics - by pm if you'd rather.

Many thanks :A

kelloggs36

Depends on which plan - I used to do Pampered Chef which was great! The hostess gifts were paid for by the company so you don't have to spend out for anything like that but the commission isn't as good as others - from memory I think it was 20% to start, which can rise if you make good sales. I loved this, but didn't have the time to give to it as I am a teacher who works stupid hours and is too knackered to work extra lol! Your initial outlay is the kit, but you can host your own show and redeem points to get money off in the first place - obviously it is only good if you like cooking. Jamie Oliver does something similar but he doesn't demonstrate cooking an item - which in my opinion makes Pampered Chef better as you get to see the things in action and you can use them there and then.

Wishfairy2010

Yes, the cost of the kit was something I'd forgotten.

I'm going to think this one through from every angle!

ButterPie_2

I've worked with a couple of companies. Commission usually starts at 20-30%, and goes up with getting high sales, promotions and so on. Promotions are usually reached by recruiting and getting good sales as a team. Hostesses usually get 10-20% of party sales to spend on items from the catalogue, plus sometimes a free gift. There is usually an incentive (extra free stuff usually) for the hostess to get her friends to book thier own parties.

Wishfairy2010

ButterPie wrote: »

I've worked with a couple of companies. Commission usually starts at 20-30%, and goes up with getting high sales, promotions and so on. Promotions are usually reached by recruiting and getting good sales as a team. Hostesses usually get 10-20% of party sales to spend on items from the catalogue, plus sometimes a free gift. There is usually an incentive (extra free stuff usually) for the hostess to get her friends to book thier own parties.

Do you remember if you paid the hostess commission or did the company cover this?

ButterPie_2

The company always covers it, sorry, I forgot to say. I'll try and explain using round numbers so I don't get confused:

Party guests order £100 of goods between them, and give £100 money to the organiser.

The host then chooses her £10 of free goods, or £20 if her friends book two parties of thier own.

Organiser goes home and puts the order into her computer. The order is effectively for £120 of goods (£100 for the guests and £20 for the host). Because the organiser is on 20% commission, she then pays £80 to the company (£100 - 20%) and keeps her £20.

Often, the organiser also gets an over ride commission. This is extra, for getting a certain amount of sales, or as a percentage of the sales that her team have made. This usually comes monthly.

The organiser usually has forms so she can take card payments. Usually, in this example, the card payments would be less than the £80 payment, so the organiser could keep £20 cash, but if not, the excess would be paid back to the organiser in the monthly overide.

I'm not sure if I'm making any sense, but it makes sense when you do it

If you want to set up a party plan company, you might need to be a member of the DSA, I'm not sure.

Wishfairy2010

ButterPie wrote: »

The company always covers it, sorry, I forgot to say. I'll try and explain using round numbers so I don't get confused:

Party guests order £100 of goods between them, and give £100 money to the organiser.

The host then chooses her £10 of free goods, or £20 if her friends book two parties of thier own.

Organiser goes home and puts the order into her computer. The order is effectively for £120 of goods (£100 for the guests and £20 for the host). Because the organiser is on 20% commission, she then pays £80 to the company (£100 - 20%) and keeps her £20.

Often, the organiser also gets an over ride commission. This is extra, for getting a certain amount of sales, or as a percentage of the sales that her team have made. This usually comes monthly.

The organiser usually has forms so she can take card payments. Usually, in this example, the card payments would be less than the £80 payment, so the organiser could keep £20 cash, but if not, the excess would be paid back to the organiser in the monthly overide.

I'm not sure if I'm making any sense, but it makes sense when you do it

If you want to set up a party plan company, you might need to be a member of the DSA, I'm not sure.

Soooo.... you get 20% of guests sales but no comission on the hostess order? If she were to order £30 what would happen to your earnings?

Sorry to keep with the questions lol

ButterPie_2

That's ok
If the host wants to order more than what she is getting free, it is added to the guests total. EG, which the commission levels I used in my example above, if the guests ordered £100 and the hostess ordered £30, the organiser would get commission on £110. The hostess gets a percentage of the products paid for as her free bit.

The organiser puts all the paid for orders into the system together, it has no way of knowing who bought what. In fact, I have done it before when I have simply sold £120 of products to someone for £100 (in fact I knocked a bit more off to sweeten the deal, but that was my choice - I just took the money off my commission) and it just goes through the system the same as if 20 people had spent £5 each at a party.

For both the companies I have worked for, you just enter the date of the party, then the paid for orders, then the hosts free products, then any stationery or special offers you want as an organiser, then the guests card details, then your card details for any cash payments. It all comes in a big box and you sort it out into bags according to who ordered what, label it and deliver to the hostess.