Analysis of the marketing activities of the Mary Kay company. The Mary Kay business principle What does the company offer

Hi all! I have again prepared for you a detailed review of a company from the world of network marketing.

This time, Mary Kay, which is known to many women who prefer high-quality decorative and caring cosmetics, as well as luxurious perfumes, fell under the scope.

Let's try to understand its features.

The name Mary Kay was not chosen by chance - it is the name of the founder of the brand. In 1963, she decided to create a cosmetics company on the principles of giving women the opportunity to build their own beautiful business and gain independence.

Now the company's products are in demand in different countries. More than three million sales assistants collaborate with the cosmetics brand. The annual turnover exceeds three billion dollars.

The company's production facilities are located in Dallas (producing cosmetics for the US market) and in Hangzhou, China (manufacturing and packaging products for the Chinese market).

When entering the European market, it became necessary to organize production in Switzerland, but this plant did not last long. Therefore, now the main production is still concentrated in the United States.

Official website of the company www.marykay.ru.

What the company offers

Compared to other cosmetic brands, for example, which work on a network marketing system, Mary Kay's range is quite modest.

There are basic positions that hardly change from season to season. Sometimes they are updated with new items.

In addition to the regular line, there is also a limited series. It is released constantly, changing the composition of cosmetic products in it.

Note that the products from this series are limited and after a complete sale, they will never be repeated again.

Mary Kay offers luxurious men's and women's fragrances with rich and intense notes. Components for perfume choose only natural and high quality.

In addition, the brand offers caring cosmetics for the face, hands, feet, and body. The line of goods for make up deserves special attention. By the way, many professional makeup artists use them in their work.

Decorative cosmetics is presented:

• ink
• glitter and lipstick
• foundation creams
• rouge
• loose and compact powder
• concealer and highlighter
• masking agents.

The Mary Kay line has everything you need to create flawless makeup for any occasion.

Business with Mary Kay

I can say that the business with Mary Kay looks quite promising.

1. Firstly, the products are of high quality and are hypoallergenic. It is in demand in different countries of the world.
2. Secondly, the company offers a good consultant discount (from 30% immediately after registration), an interesting marketing plan, various competitions for consultants that allow you to win numerous valuable gifts.

Given the high quality of products, it definitely will not be lost from the one who purchases it.

Get instructions

How to make money with Mary Kay

To register with the company, you must purchase a starter kit. Standard layout...

After that, you will need to sign a cooperation agreement and create an account on marykayintouch. This site was created specifically for consultants so that they can get acquainted with the company's news online, place orders, track their activities using reports.

The company constantly holds webinars and offline meetings. They allow you to get all the necessary knowledge about products and methods of its promotion.

Beginners are actively assisted by Leaders who are interested in their rapid advancement. Consultants invite people to beauty classes, where they offer day or evening make-up using Mary Kay products.

Such meetings allow people to try cosmetics and choose the right shade.

In addition, the dissemination of information about companies in social networks is encouraged. The company makes regular mailings with tags for product promotion, ideas for social media challenges, and offers real sales tools.

Immediately after registration, it becomes possible to order products from the site with a 30% discount, but only if the order is placed for a basic unit (this is a set amount in retail prices).

If you buy products constantly, you can keep a discount of 40%. In addition, constant interesting promotions allow you to increase both the overall discount and the discount on individual products.

Company consultants have the opportunity to move up the career ladder, receive recognition and awards, for example, leaders can receive a gift in the form of a status car or a luxury trip. The reward system is obviously not new either :)

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Every consultant's career begins with the magical Ladder of Success. By selling cosmetics at free beauty classes and consultations, consultants make a profit. The amount of earnings available to independent consultants increases as they move up the Ladder of Success, from a simple Beauty Consultant to the highest position - National Leader. As new members are attracted to the Personal Group and their own Business Group is created, subsidiary Business Groups are formed, the consultant has the opportunity to receive bonuses and commissions from the total sales of members of the Personal Group and his Business Group.

Steps of the Ladder of Success.

Consultant
Senior consultant
Main Organizer
Candidate for Business Group Leaders
Business Group Leader
Senior Business Group Leader
Lead Senior Business Group Leader
National Leader
Beauty consultant job
Basic concepts:
Active order - a one-time order for an amount of at least 1.00 B.U. (base units). 1.00 B.U.= 65$ (consumer price) = 39$ (price for consultants).
Consultant Status- Indicator of the Consultant's activity. It is formed automatically based on the results of the work of the Consultant in the previous month.
Happens: Active (A)– Consultant who placed an order in the previous month;
Passive (P)- The consultant has not placed active orders for 1 to 5 months;
Terminated (T)- The consultant has not placed orders for more than five months.
For novice consultants there is a one-time 50 % discount for the first order no more 300$ at wholesale prices (discount 150$ ).

Consultant

The necessary conditions:
Place active orders with the Company at least once every 5 months. The minimum order quantity for any product is $65 at retail prices.
Possibilities:
- receive income from the sale of products in beauty classes;
- participate in various competitions and programs of Mary Kay;

Senior consultant

Possibilities:

Participate in all Internet projects of Mary Kay.

Mary Kay rewards Consultants based on quarterly performance as follows:

per calendar quarter	Corresponding Star
48.00 base units	Sapphire Star
64.00 base units	Ruby Star
80.00 base units	Diamond Star
120.00 base units	Topaz Star
160.00 base units	Emerald Star

Upon receipt of the first star by the Consultant, the Ladder is issued.
A Consultant who started his activity during the second and third months of the current calendar quarter must meet the quarterly minimum sales in order to receive the Ladder and Star.
Upon receipt of the Star, commissions are not charged.
Income:
.

Main organizer

The necessary conditions:
An Independent Beauty Consultant must be active and have a minimum of three active Panel Members in order to earn a 4-12% commission.
Possibilities:
- Receive income from the sale of products in beauty classes;
- Participate in special competitions and programs of Mary Kay;
- Participate in all Internet - projects of the company "Mary Kay";

The commission is accrued monthly in the form of a trade credit and is calculated based on the total sales volume of the Members of the Personal Group of the Consultant in wholesale prices, excluding orders made by the Independent Consultant himself.
Income:
40% of the cost of products according to the Order Form
4-12% of Personal Group sales
Personal commissions:
3-4 active Personal Group Members 4% commission;
5-7 active Personal Group Members 8% commission;
8 or more active Personal Group Members 12% commission.

Candidate for Business Group Leaders

The necessary conditions:
Meet the requirements for the Main Organizer;
Must be active in the month preceding the start of the program;
It is necessary to have 8 personal Group Members who are active in the month preceding the month from which the Consultant intends to start the qualification program for the title of Business Group Leader;
The Qualifying Business Group must consist of personal Business Group Members, as well as Business Group Members of the second, third, fourth, etc. generations who signed an agreement with the Company after the Consultant was awarded the title of Candidate for the Leader of the Business Group;
The cumulative total sales volume of the qualifying Business Group must be at least 320.00 B.U. for the qualifying period (this may be four months or less), but the cumulative sales volume for the month must not be less than 80.00 CU;
At the end of the qualification program, the Business Group must consist of at least 25 active Consultants (including the Consultant), i.e. in the last month of the program, at least 25 consultants, including the consultant himself, must place at least one active order;
The qualification of a Business Group Leader can be obtained within one, two, three or four months, depending on when the Business Group's sales volume reaches the required level and the Business Group has 25 active Business Group Members (including the Candidate).
If one of the members of the Business - Group is assigned the status of a Candidate for the Leaders of the Business - Group during the qualification program, then he and his Personal Members of the Group leave the Business - Group, i.e. form their own Business Group.
Possibilities:
- Receive income from the sale of products in beauty classes;
- Participate in special competitions and programs of Mary Kay;
- Participate in all Internet - projects of the company "Mary Kay";
- Receive 8-12% commission on the total sales volume of Personal Group Members in wholesale prices.
Income:
40% of the cost of products according to the Order Form
8-12% of Personal Group sales

Business Group Leader

The necessary conditions:
The total minimum order quantity for the Business Group must be 100.00 BU. monthly. If these requirements are not met for 2 months in a row, the Business Group Leader loses his status.
Possibilities:
- Receive income from the sale of products in beauty classes;
- Participate in special competitions and programs of the Mary Kay company;
- Participate in all Internet - projects of the company "Mary Kay";
- Receive 4-12% commission from the total volume of sales of Members of the Personal Group in wholesale prices;
- Wear the Independent Business Group Leader costume and a special insignia. Receive 9-13% commission on the total sales of your Business Group in wholesale prices;

Receive bonuses from $45.00 to $900.00 depending on the total sales of your Business Group;



- When a Beauty Consultant becomes a Business Group Leader, she begins to receive monthly commissions and bonuses from the total sales of his Business Group, which includes his personal sales.
These income streams are in addition to the commissions she receives as the Lead Organizer.
Income:


9-13% of the sales volume of the Business Group.

System for accruing commissions on the volume of sales of a Personal Business Group

		Premium in $
700.00 and more

Senior Business Group Leader

The necessary conditions:
The Senior Business Group Leader must have at least one Independent First Line Business Group Leader (if a Business Group Consultant becomes a Business Group Leader, it becomes a child First Line Business Group Leader of its Leader).
Possibilities:
- Receive income from the sale of products in beauty classes;
- Participate in special competitions and programs of the Mary Kay company;
- Participate in all Internet - projects of the company "Mary Kay";
- Receive 4-12% commission from the total volume of sales of Members of the Personal Group in wholesale prices;
- Wear the Independent Business Group Leader costume and a special insignia. Receive 9-13% commission on the total sales of your Business Group in wholesale prices;

- Take part in the Autoprogram;
- Receive 2-5.5% commission on sales of subsidiaries of the Business Group in wholesale prices;
- Participate in Conferences for Business Group Leaders, Meetings for Business Group Leaders;
- Be a member of the Marketing Council.
Income:
40% of the cost of products according to the Order Form;
4-12% of Personal Group sales;

2-5.5% of the sales volume of subsidiaries of the Business Group.

	Number of subsidiaries Business Groups
	One or more
	one to three
319.00 and more	one to three
319.00 and more

Lead Senior Business Group Leader

The necessary conditions:
The Senior Business Group Leader must have at least five First Line Business Group Leaders (if a Business Group Consultant becomes a Business Group Leader, it becomes a child First Line Business Group Leader of its Leader).
Possibilities:
- Receive income from the sale of products in beauty classes;
- Participate in special competitions and programs of the Mary Kay company;
- Participate in all Internet - projects of the company "Mary Kay";
- Receive 4-12% commission from the total volume of sales of Members of the Personal Group in wholesale prices;
- Wear the costume of an Independent Business Group Leader and a special insignia Receive 9-13% commission on the total sales of your Business Group at wholesale prices;
- Receive bonuses from $50.00 to $1.500.00 depending on the total sales of your Business Group;
- Receive 2-6% commission on the volume of sales of subsidiaries of the Business Group in wholesale prices;
- Take part in the Autoprogram;
- Participate in the Assembly of Leading Senior Leaders, Conferences for Business Group Leaders, Meetings for Business Group Leaders;
- Be a member of the Marketing Council.
Income:
40% of the cost of products according to the Order Form;
4-12% of Personal Group sales;
9-13% of the sales volume of the Business Group;
2-6% of the sales of subsidiaries of the Business Group.

The system of accrual of commissions from the sales volume of subsidiaries of the Business Group

Personal Business Group Monthly Order Volume (B.U.)	Number of subsidiaries Business Groups	% of commissions from the sales volume of subsidiaries of the Business Group (in wholesale prices)
	five or more
	Five six
	seven or more
319.00 and more	Five six
319.00 and more	seven or more

National Leader

The necessary conditions:
The National Leader must have at least thirteen First Line Business Group Leaders (if a Business Group Consultant becomes a Business Group Leader, it becomes a child First Line Business Group Leader of its Leader).
Possibilities:
- Receive income from the sale of products in beauty classes;
- Participate in special competitions and programs of the Mary Kay company;
- Participate in all Internet - projects of the company "Mary Kay";
- Receive 4-12% commission from the total volume of sales of Members of the Personal Group in wholesale prices;
- Wear the costume of the Independent National Leader;
- Receive 9-13% commission on the total sales of your Business Group in wholesale prices;
- Receive bonuses from $50.00 to $900.00 depending on the total sales of your Business Group;
- Receive 5-8% commission on the sales volume of subsidiaries of the First Line Business Group in wholesale prices;
- Receive 3% commission from the volume of sales of subsidiary Business Groups of the second line in wholesale prices;
- Receive 1% commission from the volume of sales of subsidiaries of the Third Line Business Group in wholesale prices;
- Receive one-time bonuses in the amount of $3,000 and annual bonuses in the amount of $600 for the emergence of new subsidiaries of the first-line Business Groups;
- Receive one-time bonuses of $6,000 and annual bonuses of $2,000 for the appearance of a new child National Leader in any line;
- Participate in the Assembly of National Leaders, in Conferences for Business Group Leaders;
- Take part in Meetings for Business Group Leaders;
- Participate in the annual Summit of National Leaders;
- Use a status car.
Income:
40% of the cost of products according to the Order Form;
4-12% of Personal Group sales;
9-13% of the sales volume of the Business Group;
5-8% of the sales volume of subsidiaries Business - Groups of the first line;
3% of the sales volume of subsidiaries Business - Groups of the second line;

1% of the sales volume of subsidiaries Business - Groups of the third line;
System for accruing commissions on the sales volume of a subsidiary Business Group

Personal Business Group Order Volume (B.U.)	% commission on sales volume (in wholesale prices)	Premium in $
560.00 and more

The system of accrual of commissions from the sales volume of subsidiaries business groups:

Line 1 Business Group Monthly Sales (B.U.)	% commission on sales volume of subsidiaries Business Groups (in wholesale prices)
478.00 and more
Monthly sales volume of the Business Group 2 lines

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Today, there are not so many women who have not even heard of the Mary Kay company. Someone loves her products, becoming a regular customer, someone has built a business in Mary Kay, having already , and someone is still cautious, does not trust, and even rejects wonderful cosmetics. And after all, there is no smoke without fire: apparently there is a reason for that ... or maybe it's gossip ... or black PR, low-quality criticism? .. Let's try to figure it out, let's start with how it all began:

The name of the company comes from its founders: Mary Kay Ash, which opened a small cosmetics store in Dallas in 1963. The principle of work from the very beginning was in the heart-to-heart format, which is at the heart of network marketing. However, it was only thanks to the personal philosophy of Mary Kay Ash that the company grew at a rapid pace, so much so that in 2011 it broke into 6th place in the world among large network companies in terms of sales: net profit was about 3 billion dollars.

The peculiarity and policy of the company is that "beauty consultants" only women can be, as Mary Kay Ash's philosophy is designed to improve women's lives, help them achieve career success, while maintaining the ability to fully care for their families.

On the one hand, Mary Kay arranges special schools, master classes, training seminars, motivating holidays to improve the professionalism and personal growth of its consultants. On the other hand, it develops a system of gifts, bonuses, incentive events to increase motivation, self-esteem, self-esteem of independent consultants. For each step of the work done, the Mary Kay company encourages at first with small, and as you climb the career ladder, with more and more large gifts, starting with a handbag, a branded suit, then precious jewelry, trips to exotic countries, and, in the end, a car.

Thus, the Mary Kay company took a leading position, in addition, it became the first company on the New York Stock Exchange, headed by a woman - Mary Kay Ash. When successful male businessmen around showed doubts about the development of the company, Mary Kay Ash liked to repeat:

So The bumblebee has become the symbol of Mary Kay., and is now one of the gifts for women who have achieved career success.

However, today it is not so easy for novice consultants to succeed, despite the company's classic marketing plan. At Mary Kay, you have the opportunity to climb the following steps:

As you grow at Mary Kay, you will earn an increasing turnover of up to 13%. However, you do not receive it immediately: you need to rise up to the level of the main organizer to get the first 4% of the profit from the turnover of their structure. Business Group Leader Candidate– already receives 8% of remuneration for his work, and, starting from business group leader, you have the right to claim 12% or more of the profit from your structure.

You also have the opportunity to receive 40% of the profit for retail sales, especially since Mary Kay is more focused on the direct sales method, and their training system is completely focused on this important skill - the ability to sell. This has both their advantage (a worthy turnover of $ 3 billion) and a disadvantage, because network marketing is not only sales, it is constant personal growth. I do not want to say that Mary Kay does not have it, but still, this company focuses on turnover, and not on building a network and managing it, which in fact is real network marketing.

Another significant drawback of the Mary Kay company is its age. The most optimal entry into the company is considered from 3 to 7 years. If you entered in middle age - between 10 and 20 years old you also still have a chance to succeed in business. But when you have a veteran company that is over 20 years old, and consultants are already stalking you around every corner, you are unlikely to achieve the level of "National leader»With such competition, unless you move to another country where the wholeness still reigns.

As for the company's products, 2 main lines should be noted here: This is a cosmetic series for face and body skin care, as well as decorative cosmetics. To be honest, I am personally very enthusiastic about decorative cosmetics, and I am a regular customer of Mary Kay. Indeed, the price justifies the quality, which, in my opinion, is at a fairly high level. And here is a series for face and body skin care: what is not a remedy is a complete disappointment. When comparing the quality of other MLM cosmetics companies such as , , Tian Di, then Mary Kay loses significantly.

Rumor has it that their cosmetics contain animal hormones, which causes the skin to become addicted to cosmetics. And although officially in America, and in other countries, it is forbidden to use hormones, nevertheless, Mary Kay has such a reputation that they are afraid to use their cosmetics.

However, many of those who still risk using the cosmetic series are most often dissatisfied due to various side effects: skin irritations, redness, allergies. In my case, nothing like this happened: I just had something to compare with, so I am happy to remain a consumer of decorative cosmetics, and with the same pleasure I refuse a series of face and hand skin care.

Thank you for your attention!

If you are a health conscious person, or just keep up with network marketing news, don't miss out. the next review about the already sensational “Wellness” company: “Kayane”

For what reasons should you accept her offer to become a health consultant, thereby earning yourself a passive income. And why you shouldn't do it...

Don't miss the next review, so, subscribe to my newsletter!

See you on my blog!

Mary Kay SWOT Analysis

SWOT - analysis is one of the most common types of strategic management analysis at present. In order to identify the strengths and weaknesses of Mary Kay, its potential opportunities and threats, we compare the internal strengths and weaknesses of the enterprise with market opportunities.

Table 1. SWOT analysis of Mary Kay

Extensive experience in organizing personal sales High level of organization of management accounting Availability of highly qualified production personnel Established system of supply of raw materials, materials and equipment	Insufficient level of customer service Insufficient level of development of distribution channels Average position in market share Leadership style and company structure inappropriate to the market situation Lack of strategic planning system
Possibilities: Changing public stereotypes in relation to advertising Increasing the number of housewives (decrease in employment among women) Increasing the purchasing power of the population Increasing the number of business structures	Expansion of the range of cosmetic products Development of a personal sales system for wholesale buyers of cosmetic products Increasing production capacity for the manufacture of cosmetic products	Creation of a unified marketing service at the enterprise Increasing the company's market share by creating new products and conquering new market segments
Economic slowdown Increasing tax pressure Development of electronic communications technology	Creation of a system of accounting and cost reduction The use of natural raw materials Creation of an electronic sales system	Expansion of distribution channels Creation of a feedback system with the company's customers Development of technologies and products without the use of paper raw materials

STEP - Mary Kay Analysis

We will track changes in Mary Kay's macro environment in four aspects, such as political, economic, social and technological, and identify trends, events that the company is able or unable to control. Which, in turn, will help you understand what strategic decisions you need to make to change Mary Kay. To do this, we will. STEP - analysis.

Table 2. Mary Kay STEP analysis

	STEP factors
	Political and legal factors State policy in training personnel for the industry Recognition of the Russian Federation as a country with a market economy Customs policy of the state - Political stability in the state - The nature of the attitude of the state to the industry	The popularity of Russian cosmetics The balance of supply and demand	Real relations between the Russian Federation and the United States can lead to negative consequences for a company in Russia	Active government intervention. Strengthening the action of market levers is necessary to ensure the conditions for the priority development of the network business.
	Economic forces - decrease in purchasing power; - unfavorable (for production) monetary policy of the government - unfavorable business climate Market size and rate of change Sizes and growth rates of market segments in accordance with the interests of the company	Thanks to the network marketing of the company and the popularity of the brand, the market size is increasing	- decrease in demand - decrease in profit - struggle in the market/competition - depreciation of the ruble against world currencies	Application of systems of discounts/promotions. Cooperation with other companies.
	Social factors Creation of new jobs Qualification characteristics of the labor force Low income level of the population of the Russian Federation as a whole	Decrease in unemployment (especially women)	- decrease in profit - decrease in demand for products	Improvement of the credit system of payment. Promotions and discounts.
	Technological and technical factors Implementation (use) of advanced technologies based on modern computer systems for research and development of new products Use of modern technologies by competitors	Increase in the number of consumers Profit increase Opportunity to improve your technology Improving efficiency and attractiveness for consumers	Extra costs for the development of modern technologies	Constantly develop and look for new ways to attract consumers.

Mary Kay Target Audience Identification

The Mary Kay company in its marketing activities tries to focus on all market segments. Depending on what special properties this or that group of consumers is looking for in this or that cosmetic product, Mary Kay offers the appropriate series of products. Obviously, people who live in almost any climate use cosmetics - from the point of view of this factor, a cosmetic product is universal. To identify its potential client, the company will be able to significantly reduce the cost of advertising and promotion of the Mary Kay business for some clients and increase for others.

Table 3 Mary Kay Target Audience

Name of target audience (type)	Description of target audience	Main motives
1. Women 18-99	They like to take care of themselves, have an average income	Skin care, craving for quality cosmetics. Search for high quality products.
	A group of people united by family ties	An ordinary purchase or a special occasion (for example, a gift for a holiday). Because there are products for the whole family.
3. Men 30-50 years old	Men, middle class, married	Personal care, search for suitable cosmetics. Gifts for wives.
4. Population with an average income of the Tomsk region	People living in Western Siberia, where there is a continental climate and a long, harsh winter.	Due to the harsh climate, high-quality cosmetics are necessary for everyone, at any age.
5. People over the age of 50	People with average or above average income who pay attention to their appearance.	Taking care of your health, fighting the signs of aging.

Table 4 Market segmentation factors by consumer groups

		Meaning
1. Geographic Administrative division population population density	Western Siberian Tomsk region 500-700 thousand people continental
2. Demographics family size life cycle stage occupation nationality	family, single Housewives Doesn't matter
3. Psychological social layer life style personal qualities	middle class - high urban ambition, striving for leadership
4. Behavioral degree of purchase readiness degree reason to buy	ordinary nature of the acquisition high quality products everyday purchase
	1. Geographic Administrative division population population density	Western Siberian Tomsk region 500-700 thousand people doesn't matter
2. Demographics family size income level occupation nationality	35 or more doesn't matter. low to high Doesn't matter
3. Psychological social layer life style personal qualities	middle class - high urban doesn't matter.
4. Behavioral degree of purchase readiness degree reason to buy	random nature of the acquisition product quality sometimes needed ready to buy a special case
TO population		Meaning
1. Geographic adm. division population population density	Western Siberian Tomsk region 500-700 thousand people continental
2. Demographics family size life cycle stage occupation nationality	doesn't matter. doesn't matter. low to high Doesn't matter
3. Psychological social layer life style personal qualities	middle class - high urban/rural doesn't matter.
4. Behavioral degree of purchase readiness degree reason to buy	possibly random acquisition high quality, good service, uniqueness sometimes needed ready to buy

An analysis of Mary Kay's market segmentation tells us that women are the main consumer of products, which is not surprising, because cosmetics are created by them and for them.

Identifying Mary Kay's Competitiveness

The success of the functioning of enterprises in modern conditions also depends on the level of competitiveness of the products they offer to consumers. Only entering the market with a competitive product enables the company to survive in the market. Enterprises that invest in an uncompetitive product are doomed to failure.

To determine the competitiveness of Mary Kay, we compared it with network companies such as Avon and Oriflame. The competitiveness of companies was determined by the method of evaluative comparison of companies on such factors as: product, price, distribution channels and product promotion on the market. We see the results in the tables below.

Diagram 1 Competitiveness analysis

Factors of competitiveness

Table 5 Factors of competitiveness

Quality Package Product uniqueness Brand prestige;
Free negotiable
Sales channels: Degree of market coverage; Sales form: Sales Representatives Warehouse placement
Demo trading Media promotion

Mary Kay is the leader in almost all indicators that we took for the study. But there are exceptions. Mary Kay is inferior to other companies in terms of price and promotion of the product on the market. In order to fix this, you need to pay more attention to this area. You need to launch a new, more interesting advertisement, make a presentation of your products. And to prove to potential customers that the price depends on quality and focus on it, explaining the price of your product.