The Pampered Chef has grown to become one of the leading direct sales and work at home opportunities since its launch in 1981. The business was created by Doris Carpenter in 1980, and has attracted many happy cooks who position themselves as consultants and host cooking parties to sell gourmet kitchen supplies, accessories, and foods. With over 60,000 associates and growing, The Pampered Chef is a globally-recognized network marketing business that is helping people of all ages and backgrounds launch their own business. But how much does it really cost to make that first sale? Is The Pampered Chef business worth the investment?
Startup Costs for The Pampered Chef
The Pampered Chef offers a comprehensive business package for prospective business owners, featuring business materials, training, and a diverse catalog of kitchen products as part of the startup package. The total cost to begin is $155, and a consultants can sign up online. For an additional fee, a consultant website can be launched to generate referral sales.
The Process of Becoming a Pampered Chef Consultant
After signing up for the package and paying the fee, each consultant will be given a web ID to review the entire agreement for a period of nine days. If they choose to accept the agreement, they can proceed to the next stage and get started in building their business. Training is available through videos, books, newsletters, and over the phone.
Consultants also have an opportunity to earn rewards for each sales level they achieve, as well as incentives for recruiting other consultants. Dream vacations, jewelry, and free Pampered Chef products are just a few of the non-monetary benefits of joining the program. Maintaining an active status is a top priority for all consultants, which means making at least $100 in sales every month. Consultants who don’t meet their monthly goals are charged an ‘insurance fee’ of $2 each month.
How to Make Sales with The Pampered Chef
The Pampered Chef is a direct sales program that trains consultants to host cooking parties to generate sales. This means inviting friends, family, and colleagues to events hosted throughout the month, demonstrating different products, and encouraging people to buy. The company provides its own set of recipes and menus to make use of different products, and this can help make the parties more educational and informative rather than becoming a simple food tasting.
Consultants earn a 20% commission on products when they begin, and need to submit at least $1,250 in orders during the first three months according to Pampered Chef Consultant Kendra Young (Source: Kendra Young’s consultant page) . Host specials and prizes are available, and this is one incentive for many to keep hosting shoes so that they can qualify for free products. Commission ranges increase after selling $15,000 in product.
Still, the pressure’s on to make those sales. Consultants are given 25 different products as part of the startup kit that includes items such as the Ultimate Mandoline, a Microplane Adjustable Grater, a Stackable Cooling Rack, and a classic Garlic Press. Using as many tools and gadgets as possible during the demonstration is the easiest way to showcase all the options, and every consultant can host as many shows as they want to in order to generate interest in different products.
Calculating Costs for Making the Sale with Pampered Chef Party
To calculate how much it costs to make a sale with a Pampered Chef party, a breakdown of the type of work involved can help pull together the details. Here are the tentative costs for hosting a party:
1. Dedicating 3-4 hours strictly for hosting the party (billable time at your usual hourly rate)
2. Sending out invites to potential participants (1 hour)
3. Buying ingredients and food for 2-3 recipes (1 hour + $20-$30 in ingredients
4. Printing costs for brochures, invites, and follow up sales letters (approx. $5-$10)
5. Time dedicated to follow up with guests and place orders (1-2 hours)
This equates to a range of 7 – 9+ hours of work for each party, multiplied by your average billable rate for any other job you may have completed instead (the average administrative salary is $12 – $15 per hour, which equates to $85 – $135 in work time). Add the cost of food to this event, and the total cost can easily reach $165 or more depending on the amount of food and time dedicated to the project.
In order to cover your costs for the party, a Pampered Chef consultant would need to sell at least $800 of product or more per party. Pampered Chef consultants sharing their experiences on Yahoo! Answers reveal that they make between $80 – $100 per party, and usually host between 2 – 4 parties per month.
Bottom Line: The Pampered Chef offers many incentives and rewards programs for consultants who want to host parties on a regular basis, purchase products directly at a discount, and build a team in their region to earn commissions on team member sales. However, making that first sale can be challenging for many, and may not be as lucrative when time and food costs are factored into the total costs. As with most direct sales and work at home opportunities, persistence, diligence, and focus on building a team to generate sales are necessary skills for success in the long term.
