By: Meg Smith
Cosmetics first appeared in ancient Egypt over 5,000 years ago. Makeup was worn by both men and women to enhance their appearance and appeal to the Gods. Today, people wear makeup to amplify certain features. They wear makeup in an attempt to appear more attractive, to achieve facial symmetry, and simply because it makes them feel good.
Companies like Elizabeth Arden and Estee Lauder began to establish themselves in 1920 and 1946 respectively. Then fast forward two decades to 1963 and Mary Kay Inc. is born.
This article will focus on the story of Mary Kay Ash, the founding of Mary Kay Inc., and the business model she created that allowed other women to achieve financial success.
The founder – Mark k. ash (wagner)
Mary Kathlyn Wagner was born in 1918 in Hot Wells, Texas. At the age of twenty-one, she became a salesperson for the Stanley Home Products company. In order to encourage people to buy the household items from the company, she would host parties. After much success with Stanley Home Products, she was hired by World Gifts in 1952. She spent roughly a decade with that company before leaving after another man (that she had trained) got promoted above her and was making a much higher salary than she was.
Mary’s marketing skills and her people savvy were second to none. She was driven to succeed regardless of the obstacles that were laid out in front of her. She believed in the golden rule: “treat others as you want to be treated.”
the beginning – mary kay, inc.
At the age of forty-five after becoming disenchanted with the traditional workplace, entrepreneur Mary Kay was determined to create her own business. She started her own cosmetics company from scratch, Mary Kay Inc., in 1963 with an initial investment of $5,000. She used this initial investment to rent a small office and manufacture an initial inventory of the skin care products. She also recruited nine independent salespeople. In the 1960’s, most American bathrooms were white. Mary Kay chose the infamous pink packaging for her products so that they could be displayed on bathroom counters.
The company was profitable in its first year and sold close to $1 million worth of products by the end of its second year.
the business model
Mary Kay cosmetics are sold via a direct marketing model. They are sold through at-home parties and other events. The beauty consultants earn their income by selling directly to people in their communities and they earn commissions by recruiting new consultants to begin selling under their distribution network.
In 1968, Mary Kay purchased the first pink Cadillac. The car served as a mobile advertisement for the business. The following year, she gave her top five salespeople pink 1970 Coup de Ville cars. She had an exclusive agreement with General Motors to sell cars in the specific shade of pink only to Mary Kay. The beauty consultant winners of the cars received a company-paid, two-year lease, and then could choose to buy the cars at the end of the lease period. Mary Kay had different car incentive levels for her beauty consultants. Some beauty consultants could earn the use of a silver Chevrolet Malibu or a cash payment of $425 a month. Other beauty consultants could earn a black Chevrolet Equinox or Traverse, a Mini Cooper, or $500 a month. The top performers could choose between the pink Cadillac or $900 a month. Ford Mustangs and BMWs have been introduced as incentive options in recent years, but the pink Cadillac remains the top award for consultants whose sales exceed $100,000 in a year.
The Mary Kay Inc. culture was geared towards women. It was centered around making women feel valued and supported and gave them the ability to advance as far as they desired based on merit and effort.
key takeaways
Mary Kay Ash was certainly ahead of her time. She was an entrepreneur blazing new trails for herself and other women at a time in history when men dominated the business world. She empowered women and showed them what was possible. She helped them take control of their own lives and finances. While Mary Kay sadly passed away in November 2001, her legacy lives on.
This post has been reproduced and updated with the author’s permission. It was originally authored on May 8, 2024 and can be found here.
Megan (Meg) Smith is a rising 3L at Penn State Dickinson Law. She has bachelor’s degrees in International Business and French and an M.B.A. with a concentration in finance. Prior to coming to law school, Meg spent nearly twenty years working for Alcoa Corp. in corporate finance and government affairs. Meg is interested in practicing corporate law. To contact Meg, please email her at mps6962@psu.edu.
Sources:
- https://en.wikipedia.org/wiki/Mary_Kay_Ash#:~:text=Mary%20Kay%20Ash%20(born%20Mary,at%20least%20three%20dozen%20countries.
- https://www.marykay.com/en-us/about-mary-kay/our-founder
- https://www.biography.com/business-leaders/mary-kay-ash
- https://en.wikipedia.org/wiki/Mary_Kay
Image Sources:
- https://www.texasmonthly.com/articles/happy-birthday-mary-kay-ash/
- https://newsroom.marykay.com/media/50-years-and-still-driven-mary-kay-celebrates-milestone-anniversary-of-its-iconic-pink-cadillac-at-u-s-seminar/
