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Have you read the latest Tupperware Financial Report? Tupperware Brands Reports Third Quarter 2009 Results Significantly Ahead of Guidance - Yahoo! Finance (http://finance.yahoo.com/news/Tupperware-Brands-Reports-prnews-3083864842.html?x=0&.v=1)

Here are some highlights: "Beauty North America sales were up 2% in local currency (down 13% reported) reflecting a double digit increase by Fuller Mexico, partially offset by a double digit decrease by BeautiControl.

Re-engineering and impairment charges in 2009 include $0.4 million
related to the relocation of the Company's BeautiControl manufacturing
facility and a new plant in India, and $4.1 million for severance costs incurred to reduce
headcount in the Company's BeautiControl

In the first quarter of 2009, the Company began selling beauty products in Brazil through its Tupperware sales force rather than through the separate beauty business it had been operating. This contributed to the profit improvement since the separate beauty business operated at a loss in 2008. The total sales force advantage for the segment was 2%, and active sellers were down 5% from the prior year.

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I'm wondering if they're going to go this route in North America? Selling beauty as a Tupperware consultant instead. They can't keep losing money like this without thinking of some drastic changes. I noticed that someone mentioned a change in comp plan. Should be interesting what they come up with. How do you guys feel about this in the field?? Does it scare you or make you excited to be going through all these changes?

Also, why are they manufacturing their stuff in India now? I guess to cut more costs. I hope the integrity of the products isn't being compromised for the sake of profit. That's a sure way to have the company go downhill even faster. It's hard to sell good products in this economy, let's not start introducing crappy ones!

When we started commenting on this subject last report it opened a whole can of worms!! But here goes....
One of the really great things BC had going for it was that we manufactured our products in Dallas. I could proudly say at my Spa's that all products were made in the US. People do ask. This is not good, especially if the quality changes at all.
I know BC has been in trouble financially. The economy is a huge factor, people aren't spending. Plus if you can get it cheaper somewhere else you probably will...
The comp plan has to change. For myself, I am die hard and tried to make it to Director numerous times. All I got was a big visa bill because of the requirements to sell ($1350.00 I think it was). Anyways it was difficult even with a team of 80 people. So I say YEAH for BC, they are getting wise. Hopefully those of you that decide to go down the Director path will have an easier time to get there and maintain it.
Party plans are much harder then other plans.(the one I'm doing now)
I'm glad to hear there are changes coming....

BC did not move their plant to India. We just opened that new Multi- million dollar plant in Dallas this past year. That is the relocation mentioned. IThe new plant in India must be a tupperware plant. The actual text reads:

"related to the relocation of the Company's BeautiControl manufacturing
facility AND a new plant in India"

They are talking about overall Tupperware expenses not just BC expenses. "The Company" refers to Tupperware. They also talk about South African Expenses. BC is not in South Africa.

As far as us not growing, I blame that squarely on kit clerking. Something some of us have been fighting for years. It is an easy way to build a team, but it isn't a productive team. Another reason so many have struggled thru DIQ. In another report Rick Goings talks about how we (at BC) have shifted to a 70% consumer consultant base. And they want to shift it back to more sellers. Hence the new faces at corporate. Our company is not in trouble. BC is the best. We (consultants) have to focus on sharing the opportunity not the kit. Consultant bad biz practices are responsible for the decline. I think we are going to see great things this year. Exec Dir and above are in Dallas this week learning about the new comp plan. Directors and Sr. Director have a conference call monday. The future is bright! I can't wait for Monday. i have been in for 8 years and can't remember the last time I was this excited!

I agree with you, Spachik. If people want to do "kit clerking" then they should join a network marketing business. Direct sales companies don't work well with that. These distributors buy the business kit for the discount and end up with way too much inventory and then blows it out at cost, undercutting all their fellow distributors. That ends up making it very difficult to actually do the business the way it was intended, selling products at full retail price.

In network marketing, it's built right in that all customers order for themselves, and most of them choose to purchase at wholesale prices. So there's no inventory load ups and no undercutting. I think many of the directors were trying to run their businesses like the leading network marketing companies, but only getting paid half, and screwing their team in the process. It's very hard to do both. You either have to all agree that the price is retail or wholesale. And if everybody's signing up to be distributors and then passing their discounts onto their friends, then the only people making any money is Beauticontrol and the director, because the comp plan is not set up to reward this kind of business building.

I'm interested to see if the comp plan will be changing to be more like a network marketing company? It will be interesting to see what they come up with. We were fighting for changes in the comp plan for years, so it's about time! The main thing they need to address, IMO, is the drop in pay directors get when they promote out a director. That kills so many director's businesses that they're scared to help anybody succeed.

It is amusing to me where Rick talks about "cheap kits". He must be talking about $99. Tell me the difference between $125 with a rebate $25 and $99. It's what, $1?

Only time will tell if it was in fact "kit napers" and 70% wholesale buyers that gave BC a few bad years, and some recent bad quarters.

Rick, the party plan is dead and it is never coming back. We'll see next year if I am wrong.

I agree spachik the company is not in trouble, it's had a few bad years. I do think with the economy the way it is BC will have to do some more kind of extra incentives that what it's done before. I joined because a director offered me $100 in free product, as well as the rebate, as well as the rebate on $500 of product, getting the extra product for $20, etc. That's what it takes to get customers these days.

Also Mary Kay did a $50 kit, hey Rick that's an idea!

I am all for directors making more esp the good ones.

I joined because a director offered me $100 in free product, as well as the rebate, as well as the rebate on $500 of product, getting the extra product for $20, etc. That's what it takes to get customers these days.
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This is what I'm talking about. Bribing people to buy the kit? That's crazy! If you have a product and business that's truly compelling, people will pay full price for it. I have no problem getting business people in my business and they're actually working and building!! I think BC needs to focus on differentiating themselves instead of always following the pack. That's the real reason it's so hard to find customers. You're competing with thousands of other companies. Why would people go to the trouble of hunting down a distributor, waiting and paying for shipping/delivery, listening to hours of sales presentation disguised as a "spa experience", when they can get similar products at the local store? Or worse yet, buy it really cheap on Kijiji or ebay?

If you are talking in terms of spa parties, yes I agree. But BC makes some outstanding products that I think a one on one selling would entice women to buy.

Your above post reflects my point that party plans are not the way anymore.

I am new here but I am suprised that some seem to think that the Spa (party plan) is played out. I hold about 3 a week. I book everywhere I go. My waitress, other mom's, the doctors office... In this economy women are cutting back on spa services which puts us in the right place at the right time. My biz has never been better. And with IFL sales are great. 1-on-1's are great also. But real growth comes with 75% Spas and 25% consults. That's what I teach my team. If you a struggling to book, perhaps you just need different verbiage. The devil is in the details.

Spachik

I agree with your posts.
Although the last time a report came out, the board did get quite interesting....so I have thought for awhile on commenting on this one.

We do have a brand new R&D facility in Dallas, so I doubt that the other facility mentioned in the report has to do with BC.
Since Tupperware is our parent company and this is part of the report "Tupperware Brazil, India, Indonesia, Korea, Malaysia, Russia, South Africa, Turkey, Venezuela and Fuller Mexico"........it is more likely a new Tupperware facility that was built in India.

Changes? It seems to me that I have mentioned this in the past. As long as I have the quality products and tools needed to do MY business, at the end of the day its all good.

There have been discussions about kit pricing all over the forums in the past. Those that are actively seeking a low kit price without looking at the products, business tools, comp plan and etc.as a whole, are really not going to be doing the business long anyways (statistically speaking) and these are not the type of people you need on your team if you are building for directorship.
I never have sold the kit as a "better deal". Also at one time the kit was $500 and I know of three off-hand that payed that and are still doing the business 20 years later. I payed $179 for mine.

Hope everyone has a awesome week-end!

I agree with a lot here. And I"m glad to hear BC is working on the comp plan. BC has great products, but they have a lousy comp plan (IMO). I heard straight from a consultant's mouth yesterday who has 20+ yrs in BC, who's made Director and lost it, recently struggled with maintaining Unit Mgr and now is at Unit VIP that it is not a business that you can make money at as it being your only source of income. If making money is not your goal but having fun is, then this is the business for you.
It was a hard decision for me to leave this company because of the time I had in it and the products, I do love some of the products however, my intentions of working from home and making an income made my mind up to check out other companies to do that. And of course the strong encouragement from my husband :-)

I would totally disagree with her that you can't make money with BC. That sounds like sour grapes talking. This has been my full time job and only job for 8 years. And there are 1000's more just like me, even more successful. The current comp plan is one of the most lucrative (industry wide) for Directors. I ma pretty well versed on the rest (Party Lite, Pampered chef, MK, Arbonne, Avon...) I feel like I have to be as a Director. You have to know the competion. Some people always think the grass is greener.

The new comp plan in January seems to help VIP's make more and bridge the gap between VIP and the nextstep. Its just a refocus toward team building vs. just recruiting.

mconkling... did I read that right? You are not currently with BC? I thought this was a BC chat room? Anyway, best of luck to you.

I agree with you spachik, ......if monconkling, makeover man, and johannaa were truly happy with their present company they wouldn't see the need to be on the BC blogs trying to bash everything...they are wasting way to much time trying to make BC out as a negative and it is not. This site used to be a positive place to find support and it is sad that some want to ruin that......just my opinion!!!!!

Yes Spachick, you did read that right. And I can read as well that this is a BC board. And I am an active bc consultant so I have my id to get in the door :-) I do not work it as my full time business any more but do work with a different company. And thanks for your best wishes! :-)
Spatime4u, yes I am truly happy with my new company and I did not bash anything here, I stated my opinion just as you did about something. If you look back at my post I noted "(IMO)" at the end of my statement. That stands for In My Opinion in case you did not know that. I do not come on the BC board much anymore because I don't work the business and want to focus on my own company's board. But the Tupperware post caught my attention as I was scrolling down to my company's board and I wanted to read it.
And again IMO (in my opinion), you're post here is just as negative as the rest.

I too do not understand why the girls that have decided to move on to another company want to continue to influence the chats on the BC boards. This is a place where consultants can learn from each other and so many new girls come here looking for encouraging information, why would we clutter it with as you said "sour grapes"

I have been a happy BC Director for 3 years now and in the past I would visit this board to find great ideas to share with my team. This year, when I checked the boards, I was shocked at the "former" spa girls that still felt the need to post their less than positive opinions about BC, with a website signature promoting a competing company. I decided to begin posting more, just to create more positive and encouraging posts for the BC board. It seems to me like the posts from the former spa girls are "trolling" the boards for unhappy consultants that they can contact.

If you have moved on, that's great , and I hope you are happy with your new company, but shouldn't your posts be focused on that board? I fully respect a person's choice to make a different career move, I just think then targetting a previous company's consultants instead of finding your own shows a huge lack of integrity.

opinions and responses on the orginal posts:
BC products are currently all produced in Dallas, except for a few make up items outsourced to European manufacturers

BC and Tupperware will remain separate entities with separate sales forces in North America

Party plan is changing, but still an amazing way to connect , share, and do all aspects of your BC business

The consultants and Directors that have thrived have continued to do parties and added new forms of building your spa business like one on ones, aand Instant Face Lifts

BC has one of the strongest career plans in the industry IF you work it with integrity. The break downs of the previous career plan were (IMO) breakdowns of integrity. If you were willing to buy product that you did not sell, or sign up people just to earn rewards, it undermines your business.( or poor shoices undermine your business )

In closing, I have been a BC product user and consultant for more than 20 yrs, and a Director for 3. BC is an amazing company with one of the best career plans I have ever seen. I love that anyone can make great money with BC, just by sharing products, or if you enjoy people and want to share the business and teach others how to share with a servants heart, you can earn a fabulous income. BeautiControl has allowed me to have my first $100K+ year in earnings and I hope to continue to serve and grow and be enjoying my career as a Director 20 or more years from now, as much as I do today. BeautiControl is structuring the company and the compensation plan now for tremendous growth over the next few years , and closing a few "loopholes" where lack of integrity was rewarded. Kudos to BC for taking the time to improve the structure and elevate the integrity of our career plan.

I have been reading these boards for awhile, and there are a few people from other companies who come to the BC and MK board and get into arguments with consultants there. If these posters are BC consultants, even if they are with another company, they have a right to post unless they insult someone.. Its the people who have never been consultants of the company I object to.

Unless we see it broken down bit by bit, how exactley is BC better than Jafra or Mary Kay? Correct me if I am wrong, but if you lose diq, don't you lose the consultants you requited or is the consultants your team requited? Johanna once wrote about this.

If the career plan is one of the best in the industry, then why is BC losing money? Why are they changing this plan? These are just business questions, not meant to challenge anyone.

I was just surprised to see consultants from other companies on our BC board. It causes a lot of questions in my mind. Why are they here instead of on your own board. And when you read the posts, they really don't add value to the conversation. I would never post on a MK chat board because I wouldn't have anything positive to say. It is a free country and you can say what you want... I just wonder why. It does look like trolling for disenchanted BC Consultants and planting seeds of fear... IMO of course.

If you "loose" DIQ, you just wait 30 days and restart. Your downline remains intact. If you loose your Directorship status, you can just begin again! All downline is intact. And when the new plan goes into effect, you can do that in as few as 2 months instead of 6. If I had 1 of mine struggle that hard thru DIQ I would tell her to back up and re-group. Unit building comes as a by-product of holding spa on a regular basis, sharing the opportunity from your heart and having a solid biz plan. If it is that much of a struggle, you just aren't ready. It isn't a flaw in the plan.

BC isn't "loosing money". Our overall SALES are down but that is due to rampant kit clerking and a bad economy. Everyone's sales are down. Cases don't count towards sales for anyone, BC included. So consultants (following bad advice) are clerking the kit instead of selling retail products. Since most of these "kit-nappers" were just buying a deal, they rarely reorder even at the discount and rarely sell to anyone else. So basically we have just giving away products. Our case has around $500 of full sized product in it. BC is taking a bath on cases.

I think the reason for the change is to cut out the incentive for Directors to kit clerk. SOME (not all) Directors get that 3rd 1 in, anyway they can. So BC is switching the emphasis from recruiting warm bodies to building successful VIP's (which I love, my heart is helping others be successful). When we (Directors) get 3 people in a month- we make 36%. Many of those people they are paying us 36% for, never even place a retail order.

The biggest change to the career plan is for VIP's. They are quadrupling their pay in essence. So very easily a first level manager can be making a $500 paycheck plus her sales! And based on the power of 3, stair stepping them from VIP with 3... to Sr. VIP with 6...to Exec Vip with 9 and then DIQ and beyond. A less scary progression. The upper VIP levels have volume requirements so it better prepares people to go into DIQ.

For Directors and DIQ's much remains the same. But, instead of Directors getting bonused on recruiting, we get bonused on building successful VIP's!


As far as why I think BC's comp plan is better.... two things. 1) We have the most viable marketing plan... Spas. The fastest growing industry in the US. And an industry that is loosing ground in this economy. So we (BC) are flourishing. 2) As we get hit hard by a competetor, I research it. I have spread sheets on most of the other companies showing how much money you make on an identical unit. And you do make more with BC. That is why I am still here 8 years later.

closing a few "loopholes" where lack of integrity was rewarded. Kudos to BC for taking the time to improve the structure and elevate the integrity of our career plan.

Well put, Sherri. I think this is great. It was all the "creative" ways many top directors were conducting business that made me decide to quit. I'm not going into details, but it was exactly that -- rewarding a lack of integrity. I'm glad the loop holes have been closed. Hopefully the top "sellers" will be just that, not the top "buyers".

There will alwys be attention seeking "top sellers" that are really top shoppers. No matter what you do as a Director. I even call them and say "What have you sold". Don't order another thing until you sell $100. Some of them do it anyway. But they can never blame me. I do everything I can to discourage it. And then their areUnits in all companies that encourage "stocking up". I try to give my people good guidence on what a healthy inventory looks like.

When I stated that BC was "losing money" it might be more correct to say that in some quarters they are, and in some quarters they are not. You only have to look at the 2008 and 2009 info, and if you can understand it (which I barely can).

Segment profit (loss)
Beauty North America

I based my remarks on a link that is at the bottom of this page, under "realated headlines: Earnings Call Transacrip". In that article, Rick Goings, who is the President of Tupperware, talks about Beauticontrol and its current state.

If Beauticontrol had not been losing money, or else not making a particularly good profit, they would not have spent $$ to replace the past BC presidents and staff.

I am no accountant, but to say, BC is not losing money while they are having (negative sales) is something of a contradiction.

To base the current state of BC on kitnappers and non selling directors is an oversimplification.

Since I joined the company and am slowing transforming my beauti world into al BC I am all for growth. I am very interested in seeing this change of VIP to director. I might even consider it myself. But let's face facts and keep it real. Again, I am no comptroller but I can read plain Engllish or at least as close to it as Rick Goings gets (pig into the python????) when I read the call transcript.

I recommend it to others here who are interested.

I read the repost. It says that we had a double digit decrease over last year which included our new multi million $$$ facility and severances. Which means that we netted less money this year than last after all costs. I can only imagine what we paid Kristy and Melissa in severance so that makes total sense. This was also on the heels of 15 consecutive quarters of growth. It doesn’t mean we are loosing $$$, it means we hot a plateau WITH major expenses. I think you might be reading too much into the financials. A double digit “loss” could be 10% which would only be a couple 100k. Considering the mills we spent on the new Dallas facility, that isn’t bad. It just isn’t what Tupperware projected. I don’t think it over simplification to blame it on kit clerking. Our Company as whole is made up of what we each do as team. Each of us is a reflection of the bigger picture. I am no comptroller either but, I am a Director with 8 yrs exp. I know that the whole is made up of the parts. If it were not the problem, BC would not be closing the loop hole and refocusing us.

So I encourage all of you to go to work and have a little faith.

All we really have to go by is what we read in the reports and on the financials of the quarterly reports. This is the big picture. It all depends on how you read, or spin it.

We each look at the same picture and see different things. I won't be posting again on this thread because there is no point. I hope BC does better in the future.

The quote in the report is exactly ""Beauty North America sales were up 2% in local currency (down 13% reported) reflecting a double digit increase by Fuller Mexico, partially offset by a double digit decrease by BeautiControl.

That specifically says "sales" were down. It's not referring to net profits, etc. That is some fancy spinning. But it says what it says.

I don't post often anymore, but I for what it's worth...I have never been more proud to be a part of a company. The new career plan will begin rewarding VIPs with great bonuses! BC wants our main focus to move to sharing the opportunity with others. No more are they wanting huge teams, but smaller teams, making awesome money because you are teaching them to sell, book, and recruit. They are lowering the requirements for a director because they want us to be able to help our team more with opening spas and working more in the field. I think this will be awesome because hopefully some people won't try getting to director or become director with a huge credit card bill. I promoted to Director in less than a year, without having any credit card debt, and having huge sales myself and with my team. I think a lot of people aren't successful in this business because of the person that brought them in, or their director doesn't give them the support they need because they didn't receive support. BC is really working hard to change all of those things. So, if you aren't VIP, get there, and get your girls/guys there, too! It will benefit you in a huge way beginning on January 1st! Alright girls, go out and share our awesome opportunity. 1 in 10 people are out of work! There has never been a better time to join BC!

I'm really happy to hear about the new Compensation program! Finally, I don't know how many times I said they should look at this or that..... It's a great thing that they listen to their Consultants. I am a little disturbed about the tone the board took on this post though. It started out discussing the plan and ended up personally bashing Consultants (and naming them). I do have my other company posted behind my signature. I do more then one business. I love the BC products and order for customers that I have acquired over the years, but I am heading into a great compensation plan with my other business. Does that mean I shouldn't be allowed to post here? I have been on this board for years. I have tried to help other Consultants and share with my experiences.I was actively doing BC for over 3 years, and also have a Spa this w/e. I know that MConkling also has given me years of advice and helped me with things when I asked questions. I appreciate that there are those that want to keep things positive. But I don't really think there was anything negative. We were having a discussion about the Tuppperware Report and how it was interpreted and the compensation plan. Obviously BC also saw there needed to be changes as well, which they have done now. I have been thinking about this for a day or so, wasn't sure if I should say anything but I really feel like I need to. We are all entitled to our opinion, but we don't need to get personal....