Wednesday, March 25, 2009

Wednesday Wisdom - Open Clubs

Open Clubs - A New Idea!

At Regional Celebration in Phoenix, Kristine Widtfelt talked about doing "open clubs" without any minimums. I've been doing that with one of my groups for a few months now and it works great! Especially in these economic times when people are worried about $$ and committing to a club, this is a nice solution that helps your clubs stay alive, but gives your customers peace of mind. Here are the details so you know what I mean:

There are no contracts or commitments that may make a gal reluctant to "join". Gals come as they are able to financially and schedule-wise. Whether you have 10 gals or 100, you place one order for all (usually). It doesn't matter what the club total is each month. All a hostess gets is $25 in FREE product whenever it is her turn to be hostess. All attendees are on a list 1-10, 1-100, or whatever. When you are at the top of the list, it is your turn to be hostess. Here's the catch....there may be one or 20 hostesses in any given month, or 50 for that matter. Here are some examples:

Example 1) Total club order is $200 for the month, the hostess rewards are only $25, so person #1 would be the only hostess.
Example 2) Club total is $300, hostess rewards are $40, but wait! Split your order into 2 $150 orders and then 2 gals each get $25 in hostess rewards. Person #1 and Person #2 each get $25 FREE.
Example 3) Club total is $350. Two gals each get $25 in hostess rewards and YOU as the consultant get the remaining $10 FREE AND the 50% off item. You can choose to do what you wish with this benefit. It could be used to invest back into your business, given to a special customer who placed an extra large order, or used to purchase a special gift for a customer in the future for example.
Example 4) Club total is $2000 because you no longer have 4 separate clubs, but one large combined one. Woo Hoo! Lots of 50% off items that you as the consultant can use to grow your business in many creative ways! I know many consultants have 2 rotating for the $25 in hostess gifts, and one for the 50% off item. One person could potentially earn both in one month, but more than likely, they are the guest feels like she is earning gifts and discounts a LOT more frequently!

Pros to Open Clubs:
1. Customers may have to get used to only getting $25 in gifts each time, but it will be MORE OFTEN! No longer does each gal have to wait 6 months to be the hostess again, it may be every 2-3 months with this new system!

2. We as consultants don't have to worry about that dreaded "Not Quite Full Club" It's always hard to deal with the club that just can't quite stay full. I've been struggling with that right now! I always seem to have just shy of a full club and have to supplement the hostess rewards. With this new structure, hostess rewards are given as they are earned by those who participate. After a gal is hostess, she moves to the bottom of the list and moves up as long as she participates. Participation isn't necessarily attendance, she need only make her minimum purchase if she is not able to attend one month and she stays on the escalator moving up as it were. If someone finds them self unable to participate due to financial constraints or personal choice, NO PROBLEM, they just move to the bottom of the list that month regardless of where they were at the time. If they do not return the following month, they are taken off the list until they return. Once they return, they are put back on the list at the bottom and begin moving up again. Gals can come and go as they desire without ruining the club. Those that stay and return every month are rewarded the most. Those that only come once in a while may never receive hostess benefits, but get to come and "PLAY" as they are able without hurting the rewards of others, or causing the consultant grief.

3. Using the rotating hostess list, gives you some flexibility as the consultant! A couple of examples of this are ...when a customer really wants something at 50% off NOW and she’s not quite at the top of the list, you can decide if it’s to your advantage business wise to put her at the top and no one would be the wiser since I don’t publish the rotation list to all my customers. OR If a customer wants to do an additional gathering to get more than $25 you can manipulate it so that her name is at the top the month she want to do the gathering. For this you first add up all club orders and divide out the hostess rewards as usual giving her $25. Then, you add in all of HER gathering and outside orders and she will get all the extra hostess credit and 50% items that she bumps it up to. Or, sometimes it's hard for customers to stay in the $25, or I don't charge them the shipping and tax on their $25. So, sometimes I’ll leave one $25 unclaimed and use it to “take care” of overages which my customers really appreciate. But they don’t really know how I’m taking care of it...I just tell them, “no worries, I’ll take care of it this time as my gift to you.” They love it and are tickled pink!

Anyway, I hope that this concept gives everyone something to think about! Post questions if you have them and we can have a discussion about it on the blog! :)

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