Is Pampered Chef still on its way to the top?

All your friends have been talking non-stop about the latest green herbal miracle monster smoothie that’s got them feeling “better than ever” and those choco-caramel chip triple layer fudge weight loss shakes that taste great and magically have -5,000 calories because they’re sugar-free, gluten-free, dairy-free, and basically ingredient-free.

Most are pretty much made of air.

Meanwhile, you’re over there getting fatter by the minute because you’re not participating in the latest miracle weight loss scheme…because you don’t have a blender.

Well, there’s an MLM for that, too! Pampered Chef sells kitchen supplies of all sorts through direct sales.

Despite all that, something is working for Pampered Chef, or they wouldn’t be owned by one of the top 5 largest companies in the world. Have I been involved?

This video explains everything:


Make sense? Either way, here’s the full review on Pampered Chef.

Overview

Pampered Chef was founded in 1980 by Doris Christopher. Their founding story starts like that of countless other MLMs…in Doris Christopher’s basement.

By the 1990s they had more than outgrown her basement, and were now expanding to Canada, the UK, and Germany. In 2002, they were acquired by Berkshire Hathaway, who still owns the company.

Berkshire Hathaway is a multi-national conglomerate owned by Warren Buffett, based in Omaha, Nebraska.

They own…well, just about everything. They wholly own GEICO, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, FlightSafety International, BNSF Railway, and a number of other companies. [1] They also own almost half of Kraft Heinz, a portion of Mars, Incorporated, American Express, Coca-Cola, Wells Fargo, and IBM. [2]

They are the fourth largest public company in the world according to Forbes.  [3]

In other words, Pampered Chef is in good hands. But you can forget about coming close to that dough they’re raking in – it’s for investors, not consultants. It’s not even for full-time employees.

Tracy Britt Cool was brought in by Warren Buffett to run Pampered Chef as their new CEO in early 2015. Pampered Chef had seen declining revenue in 2014, so it was pretty clear she was brought in to try and get things back in shape. Her first order of business? Fire people. Pampered Chef saw the biggest decline in employment of any of Berkshire Hathaway’s companies in 2015. [4]

Of course, you’re not going to get fired as a consultant. You don’t cost the company money, because you probably don’t make any…

How much does Pampered Chef cost?
In order to join Pampered Chef, you need to buy a Consultant Kit.

  • The Ultimate Kit costs $249 and includes $1,000 worth of product.
  • The Deluxe Kit costs $159 and includes $650 worth of product.
  • The Starter Kit costs $109 and includes $450 worth of product.

If you start by hosting a party, you get a $50 kit credit that you can use toward becoming a consultant, meaning you can join for as little as $59.

Products

The Pampered Chef sells kitchenware products, and they’ve got pretty much anything you could want to stock your kitchen with. The products are high quality and pretty affordable.

Bakeware, cutlery, cookbooks, appliances, grilling accessories, dishes, holiday sets, kitchen storage…you name it, they’ve got it. They even sell food products. Here are some of my favorites…

  • Emoji cookie cutter set: $10
  • Kids pizza making set: $45
  • Herb infuser: $10
  • Soups, stews, & chilis cookbook: $8.50
  • Manual food processor: $52.50
  • Small bamboo knife block set (4 pieces): $165
  • Beer bread mix: $11
  • Dutch oven & cookbook set: $139

The idea when the company was founded was to create powerful products and combine them with useful tips to help others achieve a faster, no-fuss cooking experience.

Nowadays their products mostly look like the same kitchenware you’d find at any other store, for about the same price, if not a little more expensive. But there’s nothing overly unique or interesting about them.

Opportunity

Commission rates vary depending on your monthly sales.

  • $1-$749 in monthly sales gets you a 20% commission rate
  • $750-$1,249 in monthly sales gets you a 22% commission rate
  • $1,250-$2,499 in monthly sales gets you a 23% commission rate
  • $2,500-$3,999 in monthly sales gets you a 24% commission rate
  • $4,000+ in monthly sales gets you a 25% commission rate

As you might guess, most consultants make that 20% commission rate, which is below average.

However, once you hit $15,000 in career sales, your commission rate goes up by 2%. And once you start to build a decently-sized team, your commission rate bounces up to 31%, which isn’t bad.

Of course, if you’re going to make any decent money, it’s going to be from building up a big team.

The company also offers some pretty sweet product discounts to their consultants, including 50% off new items for a limited time. If you can’t turn a profit with them, at least you can get some discounted kitchenware.

Recap

I like the products and the idea behind the company.

But it’s a party-based MLM, and those are inherently flawed. While going to an in-home party with food is better than going to one with empty Tupperware, it’s still the case that listening to your friend give the same sales pitch for the third time over isn’t the best way to spend a Sunday afternoon.

And holding these parties isn’t a productive way to make money, either. Even if you manage to get people to come, you have to sell A LOT of product to even turn a profit.

You’re basically paying money to sell your company’s products when you throw MLM parties – you probably want to offer food (especially at a kitchen utensil party), drinks, product demonstrations, and all of that costs money. Most people spend $200 minimum on their parties, so you’d have to sell $1,000 worth of $10 spatulas just to make your money back.

However, it could be a fun side gig if you’re really into their products or like the idea of doing cooking demonstrations as a hobby. The company itself is honest about earning potential, stating on their website that 75% of their consultants hold other jobs.

This isn’t full-time income, but hey, who am I to stop you from getting a 50% discount on a new blender?

Meet the Author

Jeremy Page

Jeremy Page teaches network marketers (company cheerleaders) how to build a real business. Far from a hater, he still LOLs at 3-way calls and building "downlines". If you like Monday morning conversations with your kids by the pool, you might like this.

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