Dear Friends,

Just one generation ago I was a young college kid with no money, taking a chance on myself with a direct selling company. We were winding down a war, just like today. Unemployment was skyrocketing, just like today. Gas prices had gone through the roof and by the time I was out of college mortgage rates had spiked above 20%. Nobody could afford to buy or sell a house and you couldn't find a decent part-time job if your life depended on it. Everywhere you looked you saw vacant lots that were once car dealerships and people were standing in line at churches and schools to pick up free cheese and butter provided by the government. People were scared, just like today. People wondered if they were going to be the next one on their block out of work. That was one generation ago. That was the world when I started my career in direct selling, and that seems pretty similar to the world of today. And back then, someone inspired me to believe in myself and my future. He told me this could be a time when some people do extremely well and I could be one of them. I hope I can do that for you today.  Help you understand that you are in exactly the right place at the right time and that like me more than thirty years ago; this is the greatest time in your life to find success.

 

Today there's a perception that nobody is spending money on products that are discretionary. The reality is the average dollars spent at our parties increased 5.8% to record highs this past November compared to November 07. And our business was up 65% in November over October. Its true people are deferring some planned purchases like new homes, cars, major appliances, jewelry, and expensive clothing. But they are still buying impulse items for the home and kitchen, because like you, they are spending even more time there with family and friends.  

 

Today there's a perception among inexperienced people that nobody will want to come to a party because they don't have any money to spend. The reality is the average Entertaining at Home host might invite 30 guests to a party. In a strong economy we would expect 1 person out of 30 in our demographic to have a financial problem due to job security. In today's weaker economy we would expect a little more than 2 out of 30 to have a problem. So we've gone from 29 potential guests to almost 28. We only need about ten to have a great party! There is still virtually the same number of people available to us and your host and the same money to spend with us at a party today as opposed to one, two or three years ago.  

 

Today there's a perception among potential Consultants that all direct selling companies are the same and my opportunity to succeed will be the same regardless of who I choose.

 

The realty is nothing could be further from the truth.  Just ask the Consultants that joined Crayola's Big Yellow Box, Swiss Colony Occasions, Lillian Vernon Celebrations, or any number of party-plan companies that were here one day and gone-out-of-business the next. Direct selling opportunities are as different as a department store is to a jewelry store and all businesses perform enormously different in a slow economy. Not all party plan experiences do well in a slow economy, especially if their products are seen as luxury items for personal use. But direct selling products for the home always do well in a slow economy because people always feel good about buying products for the family. So that brings us to our wonderful company and why we're all so excited about your future. When Robin and I bought the business last summer we made the commitment mainly because we believe in the leadership of this great company. We knew then, as we know now that the one greatest asset we have is our people. You see, we are in the people building business and we have a growing collection of outstanding leaders to help us accomplish our mission. When we look for inspiration, we don't need to look outside our company, we simply look at outstanding people already with our company that are showing us what's possible with our opportunity, bad economy and all.  If they can succeed so can you.

 

With the best leadership in place we need to resolve to lead an industry. Here's what we're doing. First, we are going to hold our prices down and do the very best we can to deliver real value to our customer. I've never heard anyone say our company is over-priced but I have heard some say that about most of our competition. We can't always be the lowest price because we are always committed to be the highest quality, but we are never, ever going to take advantage of our customers or our Consultants. Let me give you two examples.  This spring one of our big competitors knocked off our Tuscan Sage Elevated Tray and Stand. They are charging $99 for an almost identical product that we sell for $69. That's 43% higher than us! One competitor sells two martini glasses for $39. We sell four for the same price! That means they are 100% more expensive than us for an almost identical product. Is that right? Is that fair? Or is that the kind of greed that has gotten most American businesses in trouble? When you pick up our Spring Catalog I hope you notice that your customers can choose from more than 70 products that are on sale right now, discounted to even more exceptional value than our already value price line. That's about one fourth of everything we sell marked way, way down. And that doesn't count the super specials we run every month for Hosts and Customers.

 

Why would someone want to book a party or start a business with us? Because we have their back during this difficult time. And you have my word on that. We need to become an example of what business should be in this Country, not what we've witnessed on Wall street over the past six months. While other businesses are reaching for a hand-out, let's reach out-a-hand to help a woman or man discover how they can become a role model.  

 

When I wrote the opening in our new catalog I said, "We started to imagine a company that would do the right things." I know that we have and will continue to do the right things. I'm confident good people will be attracted to a good company. Not a company that makes promises, a company that delivers results. I wrote, "We dreamed of what we could do for others and in that moment found the courage to sail from shore's safe harbor."  And I know that you too have dreamed of a better life for your family and found the courage to pursue it. Because we all understand at the end of our lives we will look back, and regret most, the things we didn't attempt in life, I ask you to join us the spring, catch a fair wind and sail with us to great success.

 

God bless you and your family this New Year.