||Like it? PLEASE +1 it! Thanks!|
The Queen of Cosmetics: Ash Creates an Empire
In 1953, Ash left SHP to take up work at World Gift Company, another direct sales organization based out of St. Louis. Given her past experience, Ash was earning over $1,000 per month in her first year. She was soon promoted to national training director for World Gift. Once again, however, Ash would see her efforts penalized. In 1963, World Gift began to worry that Ash’s power was too great and demoted her. Ash refused the new position, choosing instead to resign.
Ash had worked hard for over 25 years in the direct sales business, but all of a sudden she found herself unemployed. “The boredom of retirement caused a deepening sense of discontent,” Ash later recalled. “I had achieved success, but I felt that my hard work and abilities had never been justly rewarded.” Ever the optimist, Ash began “making a list of only those good things that had happened to me during the previous twenty-five years.”
Soon, Ash realized that what she had could make for the beginnings of a book. This book then turned into a business plan for Ash’s ‘dream company’. “Before long, I began asking myself, ‘Why are you theorizing about a dream company,’” said Ash. “‘Why don’t you just start one?’”
On September 13, 1963, Ash and her son, Richard Rogers, used their $5,000 in life savings to open a cosmetics company, Beauty by Mary Kay. Ash had bought the formula for a skin-care cream she was using as well as a storefront in Dallas, and began hiring friends as independent beauty consultants, her term for salespersons. “From my own use and the results I had personally received, I knew that these skin-care products were tremendous,” said Ash, “and with some modifications and high-quality packaging I was sure they would be big sellers!”
In its first year, company sales reached $198,000, primarily from sales sessions, or ‘skin care classes’, her sales team would hold in private homes. Ash rewarded her top salespeople with what would later become her company’s trademark – pink Cadillacs. They would all work part time, earning money both from their own direct sales, as well as bonuses from any recruits they brought onboard the Mary Kay team.
With its unique organizational structure and corporate culture, Ash’s company soared. In 1967, Mary Kay Cosmetics became the first company on the New York Stock Exchange to be chaired by a woman. In the 14 years after going public, the company’s sales grew at an average annual rate of 28 percent. As full-time job opportunities for women began to increase in the late 1980s and the company began to suffer, Ash and her son made the decision to buy back the company, which they did for $315 million. In 1986, the revamped Mary Kay Cosmetics saw its sales rebound. By 2004, company sales would reach over $1.8 billion in 30 markets.
Ash died on November 22, 2001, but not before leaving behind a successful multi-billion dollar operation and a strong lesson in entrepreneurship.
Related ArticlesI Missed the Joy
Lesson #3: Go Against the Grain
A Fresh Face in the World: Mary Kay Ash is Born
Your Past does not Equal your Future
Lesson #5: The Follow-Through is the Most Important Factor
Trademark International Classes: Class 3 (Cosmetics and cleaning preparations)
Book Review: Peak: How Great Companies Get Their Mojo From Maslow
Cost of a Dairy Queen Franchise
Estee Lauder: From Small Business to Multi-Million Dollar Cosmetics Empire
••••••>Include only Pertinent, Relevant well Written Content If You Want to Achieve #1 on Google and High Search Engine Rankings
Estee Lauder Biography
Changing ‘Business as Usual’: The Body Shop Becomes a Success
Dare to ACT On Your Dreams Part 4
What Can a Drag Queen Teach Sales Professionals?
The Cynical SEO Drama Queen
How Much Do Franchises Cost?
Why Content Is NOT King (And What Should Be Instead)
Thriving During a Recession
Leaders who Tell Stories Win
Home > Famous-Entrepreneurs > Mary Kay Ash > The Queen of Cosmetics Ash Creates an Empire > Google +
Free PDF Download
Mary Kay Ash Quotes
By Mary Kay Ash
Related Forum PostsRe: New web hosting site- would appreciate feedback
Re: Hello From England
Re: Who is doing CPA marketing here?
Looking for Office Mates to join the Happy Worker space
Share this article. Fund someone's dream.
Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
||Like this page? PLEASE +1 it!|