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Mary Kay's pro-employee policies boost local sales

Ms Jean Simon says the secret of the Mary Kay cosmetics company's success is because of basic business practices like integrity and long term commitment.

"Everybody involved reaps the benefits. The reward is based on effort,'' said the Mary Kay Bermuda sales director. "Founder Mary Kay Ash set out to create a company that would give the rewards to the people of the company.

"I like that philosophy. Today, many companies want employees to share in the profit. We enjoy the profit sharing every day.'' After 25 years and a successful career in direct sales, Ms Ash started Mary Kay Cosmetics by opening a 500 square foot store in Dallas.

By 1966, sales reached $1 million and in 1968 the company went public and in 1976 was listed on the New York Stock Exchange.

In 1985, the company returned to private ownership through a management-led leveraged buy-out.

Mary Kay Cosmetics, now with over $1 billion in annual sales, is guided by the principle; Do unto others as you would have them do unto you, while the company motto is God first, family second, career third, said Ms Simon.

Ms Simon, secretary to the Dean and Arts and Sciences' faculty secretary at the Bermuda College said her association with the Dallas-based cosmetics giant started in Ohio in 1981.

After living in the US for 30 years, Ms Simon, who worked in city government in Ohio, returned to Bermuda in 1982.

Unable to part with the positive results she had garnered from being associated with the cosmetics company she brought the business with her to the Island.

Each member of the Mary Kay Cosmetics family "runs their own business'', she said.

Bermuda has a distribution contract with the Mary Kay Cosmetics which allows a local distribution centre. The centre, which displays the Mary Kay Cosmetics line, is located in the Armoury Building.

Though there is a distribution centre, customers are still required to buy cosmetics through the consulting process as opposed to buying the items over the counter, she said.

Ms Simon, as a director, is responsible for managing the operations of the Island's consultants and there training. There are about 20 consultants with about 12 currently active in the Bermuda market.

Sales in Bermuda, since the Island became a distribution centre three years ago, have been about $90,000 a year, she said.

Mary Kay Cosmetics, started in 1963, now operates in 24 countries, most recently Japan, and has over 375,000 people operating as there own "business owners'' worldwide.

The Mary Kay Cosmetics ladder includes; consultant, director, sales director, executive sales directors, and national sales directors. Over 80 women have achieved the latter.

National sales directors make $1 million or more per year in commission. "We are happy for any member who has an achievement and moves up,'' said Ms Simon, one of about 7,000 directors.

Mary Kay Cosmetics was started for women -- many of the women involved today come from the corporate sector -- and the company now has men as well, she said.

Mary Kay Cosmetics, which last year debuted at number seven on Fortune magazine's top ten list of cosmetics companies, recently brought its top 650 sales people to Bermuda to reward them for their efforts.

The company, ranked 292 on the Fortune 500, has been recognised as one of the 100 best companies to work for in the US and one of the ten best companies for women to work for.

"But we are not just a cosmetics company,'' said Ms Simon.

"Mary Kay offers $120,000 to 20 students through a scholarship programme, we have the Mary Kay Cancer Research Foundation -- at last year's four-week annual seminar in Texas members donated $500,000 to the cancer centre.

"I am tremendously happy to be a part of Mary Kay Cosmetics.'' REWARDING -- Being a part of Mary Kay Cosmetics takes long term commitment, but the benefits are worth it said Ms Jean Simon, Bermuda's independent sales director for the Dallas-based cosmetics company.