Need Business Advice: "Welcome Wagon"

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TinysMom

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, Texas, USA
First - for those who don't know what Welcome Wagon is...

Welcome Wagon is a nationwide business that contacts new homeowners after relocation, providing them with coupons and advertisements from local businesses.
The company was founded in 1928, by Thomas Briggs in Memphis, Tennessee. At that time, Welcome Wagon "hostesses" would visit new homeowners with a gift basket containing samples, coupons, and advertising from contributing businesses. These home visits continued for over 50 years until 1998, when changing demographics meant few homeowners would be at home when representatives called.


Welcome Wagon


As many of you may know - I'm selling AVON now. For those who don't know - Avon carries cosmetics, fragrances, jewelry, clothing, purses, kids items and so much more....and its sold via. "representatives" (and online with the representatives). Every two week a new brochure comes out with approximately 1500 items ~ all of which are on "sale" prices in the brochure.

Ok - that's enough of the backstory.
I'm trying to build my business by building my customer base. (You can also make money by having representatives that you've recruited selling too). I also want to build my "unit" of reps under me and mentor them to do their best, etc. - but first - I really need to get my own business established.
Today I connected with the Welcome Wagon rep via. telephone - he's on his way back into town and we're going to meet later this week. But I found out some of the basic details of what he does and how much he charges.
About 10 months of the year he meets with 65-70 individuals and families per month. He gives them samples and flyers and coupons, etc. from companies in the area - these are free gifts to those people. The idea behind this is that those people are more likely to do business with someone who has reached out to them first.

He not only visits families here in Del Rio - but he also visits the Air Force base. He says about 40-45% of his visits are with student pilots that are in town for a few months to a year or more for training. Some of them are women - most are men. Many are married but haven't yet brought their family with them (or whatever).
The other two months of the year he probably meets with 30-40 individuals and families.

The cost to include my packets with what he does is.....$50 per month. From what I understand - and I haven't yet talked to him - I can make this anything I want (within reason).

For that money - he not only hands out my information but I get a copy of everyone that he visited - their names, number in family, address, phone number and email. This is so I can follow up with them.


I know that to a lot of folks $50 per month is a lot. For us ... it would not be a hardship usually.



I'm trying to decide two things - one of which is - Is it worth $50 per month to get that many leads and my products/information in the hand of newcomers?
The second thing I'm trying to decide is WHAT DO I PUT IN THE PACKETS?
I'm thinking of putting in the most current TWO brochures (I can backorder) - plus some fragrance samples, a skin care card (for our skin care lines) - and possibly - and this is another area where I need advice - a couple of trial sizes as samples.

I can buy the trial sizes when they go on sale and put in a hand lotion for about .60, a chapstick for about .40 and possibly a bubble bath for .60 (or shower gel).

For families with kids - if I stock up when they're on sale - I can get kids' body paints (that are roll-on soaps) for about .60 each. I could have him give one per child for those families (trust me - I'm thinking those families would be back - even after 20 years my own kids remember when they played with these).
So here are the two questions again...


  • Would you recommend that I use Welcome Wagon? (Why or Why Not)?
  • Would you recommend trial sizes in the packets - or is that a waste of money? (The samples would have a sticker with my name and contact information on them)
Thanks in advance for your help!
 
I'm not sure.....I have never had a Welcome Wagon rep call on me and we've lived in 5 different places in 19 years. I think that for $50 per month it wouldn't be worth it. Just my personal opinion. When we first moved to FL, hubby took out an ad in a marine directory that cost us $365 for one year.....never got a single call from it.
 
personally i would say try it for about 6 months if you can afford it and see what buisness you get. do you get enough to cover the cost of being put in the welcome stuff, if you get enough to cover the monthly cost hen try another 6 months to see if you can get it to come out to more. If not then you can stop it.
 
slavetoabunny wrote:
I'm not sure.....I have never had a Welcome Wagon rep call on me and we've lived in 5 different places in 19 years. I think that for $50 per month it wouldn't be worth it. Just my personal opinion. When we first moved to FL, hubby took out an ad in a marine directory that cost us $365 for one year.....never got a single call from it.
Wow - some of my fondest memories are of the Welcome Wagon visits in the various places we've lived. Maybe it is more of a rural thing - I don't know.

I'm leaning towards doing it as long as I can try it for 2-3 months or do it one month at a time till I see if it is worth it.

I'm going to talk to some folks here in town and see what they know about it..if anything.


 
I have also never heard of Welcome Wagon... and I lean towards not doing it as well. The reason being market audience... when people move it makes sense for maybe furniture stores, hardware stores, plumbers and the like to advertise locally. Marketing cosmetics to a group of folks who probably just spent a load moving is probably not going to get through to them.

Are the towns being targetted by this particular Welcome Wagon on the more affluent side with some extra disposable income, or not? Because with the economy what it is, unfortunately lots of people are moving because they need a more.affordable place to live. Marketing cosmetics to an area of town that is affected like this may not reap you positive results.

Anyway, just something to consider! If you can afford trying it several months and there's no long term contract, and feel it's viable, then certainly try it out and see if it works for you.
 
I would say if its in an area that can afford to purchase your products...then it would be worth it. But if its more of an area where money would be tight then not so much. Another suggestion is talk to some real estate agents. Alot of them will hand out brochures if you ask them. Just remember (this is from someone who sold AVON for years)...it's not going to be just 50 bucks a month....you have to also figure in the cost of your samples, your brochures, your trial sizes, the packaging that you put it in, etc...)
 
Thanks everyone for the input.

I live in a rural area to most folks....about 36,000 here plus the Air Force base. I just spent two hours going out and "prospecting" for clients (cold-calling businesses and leaving brochures if they were interested - I did this Friday and got a $60 order from one person). It is amazing to me the number of people who would love to buy Avon (or so they say) but they never knew how to find a rep. Several of them said that they bought years ago but don't know anyone who sells Avon now. One gal moved here 5 months ago and was wondering how to find an Avon rep.

Another person saw the sign on my car and asked me for a book while I was out and about today.

As far as being able to afford our products - it is amazing to me how many people love shampoos, body wash, shower gel, bubble bath, deodorant, etc - we have basically a couple of lines for those - one that is more comparable to salon/department store products and one that is more Walmart/Kmart prices/products.

I have one lady who can only use our deodorants due to allergies.

I say that pretty much to say that a kit of Avon customers are loyal to the product...if they can find a rep.

I had one lady today look at the book (she hadn't had a rep in several years) and go "Oh...they still have Imari...I LOVE that perfume." She wants me to call her back for her order later this week.

I am going to see if I can commit to it for a trial period - say 3 months.

I've decided that I won't do trial sizes with the brochure - BUT - I will have a "Free gift with purchase" (which is their choice of my trial sizes and hand lotions I get on sale) and a "10% off first order".

So that part of the answer is decided - now waiting to talk to the WW rep about if I can do a trial period to try it out.
 
kirbyultra wrote:
I have also never heard of Welcome Wagon... and I lean towards not doing it as well. The reason being market audience... when people move it makes sense for maybe furniture stores, hardware stores, plumbers and the like to advertise locally. Marketing cosmetics to a group of folks who probably just spent a load moving is probably not going to get through to them.

Are the towns being targetted by this particular Welcome Wagon on the more affluent side with some extra disposable income, or not? Because with the economy what it is, unfortunately lots of people are moving because they need a more.affordable place to live. Marketing cosmetics to an area of town that is affected like this may not reap you positive results.

Anyway, just something to consider! If you can afford trying it several months and there's no long term contract, and feel it's viable, then certainly try it out and see if it works for you.
I just wanted to address something you shared and thank you for your perspective.

Avon is so much more than cosmetics - I don't think folks realize that.

For those who have extra money in the budget we have our fragrances, jewelry, purses (my weakness), clothing, kids' toys & other kids' items, gadgets for the guys - and so much more. We also regularly have outlet catalogs with clearance items.

In addition - we have stuff for everyday use....our shampoo frequently goes on sale for $1.99 ~ our bubble bath is frequently $4.99 for a 24 ounce bottle ~ our deodorants are .89 - .99 (they are roll on - but we have scented and unscented).

So I'm not too worried about who we're marketing to - because we have something for every age range and gender in our brochures. (Coming up - we're going to have the FLIP video camera for $119 with a $20 purchase from our skin care line). The camera retails for $199 or something like that...

I would not say our area is affluent at all - but from what I've read and been told - Avon actually tends to do better in the rural areas - especially since we don't have a lot of malls, etc. For Del Rio - our choices are Walmart, 2 grocery stores and the mall which has a Penny's another anchor type store, Bath & Body and a Ross Dress for Less.

Anyway - you have great points and thanks for sharing - just wanted to point out that Avon isn't just cosmetics - which is one reason why I'm considering this!


 
nermal71 wrote:
I would say if its in an area that can afford to purchase your products...then it would be worth it. But if its more of an area where money would be tight then not so much. Another suggestion is talk to some real estate agents. Alot of them will hand out brochures if you ask them. Just remember (this is from someone who sold AVON for years)...it's not going to be just 50 bucks a month....you have to also figure in the cost of your samples, your brochures, your trial sizes, the packaging that you put it in, etc...)
That's a great idea....I will check into that.


 
I used to LOVE selling AVON. Then we moved and the area I am in is rural and so overly populated with reps that it just didn't pay (before we moved I used to easily put in 600 dollar orders). I so wish they would bring back Natori. It was the only perfume I wore for many years. I only have about 1/4 of a bottle left and that is because my grandmother left it to me when she died (long story, but I got her hooked on it and gave her my supply when they stopped making it and she left what was left to me when she passed). It so reminds me of her that I only wear it for very very special occasions.
 
Its nice to hear of your success at selling Avon...and those aren't bad orders at all - I bet you were doing VERY well. I hope to get to that point some day.

We have something like 200 Avon reps in Del Rio, Uvalde, and surrounding areas. Some women have been doing it for 15-20 years. One woman is an advanced unit leader and feels like she has Del Rio "sewn up".

So why is it that I keep coming across people who are saying either, "I have wanted to get Avon and had no idea how to get a book.." or "I had an Avon rep for one or two months and then they quit..." etc.

I've gone to some buildings and an Avon rep worked in that building - walk out the building - walk 3 feet to the next building and they haven't seen an Avon rep in years! (That's how I got the $60 order - and it was from someone who got to see the book from her mom who worked at that place!)

I keep looking at the numbers for the women in my district who are at the top. The top seller right now is at $22,000+ for sales since March. When I think of the fact that she's making 50% of that...I tell myself that I can get to that point too. (One of the women in our last meeting just passed the $10,000 mark here in our town).

I really appreciate being able to talk here and get folks' input. It helps me think things through and make what will hopefully be good decisions.
 
Yep my son found them too...I'm just soo afraid that I'm gonna get it and its gonna have turned to alcohol and smell bad. I think my son is gonna get it for me for Christmas cause he keeps telling me that he'll check it out for me LOL
 
I just had my meeting with the Welcome Wagon representative - WOW. We had such a good talk and he was such a big help to me.

First of all - there is no contract - it is on a month by month basis. I pay at the end of the month for that month's service (so I'll pay at the end of November since I'm starting Nov. 1st).

He looked at what I was going to do and made several suggestions - like to NOT give the perfume samples (they cost .10 each) unless I really felt like they were necessary. He felt like the brochures for Avon & Mark sold themselves and the fact I was going to do 10% off their first order plus a free gift with their first order (trial size shampoo, bubble bath, etc) - would be enough to attract attention.

I'm really pleased with him - he sounds like a man of character and integrity and as we talked and I saw how much he loves his business it made me very excited.

I just had to share the final decision. I'll try to update in a month or two and share if it is working.
 

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