Tupperware Business Review

About the Company

It would be safe to say that Tupperware is an icon in the direct sales world. Inventor Earl Tupper debuted his plastic products in 1946, using revolutionary plastic seals which kept foods from aging in the refrigerator. Though the product was great, it did not sell well in retail outlets because potential customers needed to be shown how to seal the lids. The first home party (demonstration) was in 1948, and product sales took off. Sales were so successful that the products were completely removed from retain outlets by 1951.

Today, the company and its subsidiary companies sell plastic and other products in over 100 countries around the world. The official company website claims a global sales force of 2.4 million in almost 100 countries, and sales revenues of $2.1 billion in 2009. (Source, Tupperwarebrands.com) It may be the most recognized brand name in the world. The company has acquired other smaller direct sales businesses over the years. Products include toys, cooking tools, cutlery and cookware, but its main product remains small plastic storage containers.

The Business Model

The company utilizes the direct sales business model to get its products to its customers and is a member of the Direct Sales Association. The direct sales system relies on the services of independent advisors, eliminating the need for a retail outlet for the product or services. Tupperware sells its products exclusively through its independent consultants.

Like in any direct sales organization, the company's sales force is independent contractors responsible for filing their own Federal and State Income Tax forms. Consultants may contact and sell to individuals face-to-face, one-on-one, by telephone, fax or email. Consultants may also manage their own unique website, but by far the most popular way (popular with both customers and the representatives I have met) is the “party plan”. However, while the party plan is very popular, consultants have confided that Tupperware is so well-known that sales are good even without parties.

The Party Plan

The “party” can also be one of the simplest types of business for a consultant because the host/hostess invites friends into their home or workplace to meet the consultant and purchase the products. Chances are that at some time in your life you have attended at least one party sales presentation, and probably one for Tupperware. The consultant will take a low-key approach where the products are simply made available to touch, hold, admire, try out and hopefully purchase. The consultants usually carry a sampling of popular catalogue offerings.

Sometimes a host or hostess may simply agree to have a “book party” where they pass a catalogue around to their friends, family or co-workers who may be interested in making purchases. However, that is generally a poor substitute for bringing a party together for socializing and to introduce potential new customers to the product. In return for hosting a party, the hostess may receive discounted or free product, or other hostess specials from the consultant. At the in-home parties, the actual hostess rewards depend upon the amount of sales generated by the party as well as the number of guests who agree to host another party in the future.

How to Make Money

Consultants may earn income in two ways. First, they can earn 25% commission from their own retail sales. There are sales requirements in order for a consultant to stay active, but if a consultant does become inactive, he/she may reinstate for a minute fee. Second, they have the opportunity to earn commissions based on their recruits; however there is no recruiting goal.

How to Join the Company

To join the company, you may sign up through an existing consultant (or recruiter) to become a consultant. You will need to purchase a start-up package, and they come in varying sizes. For the truly budget-minded, there is an option for under $100, including shipping, which includes products, business supplies and support materials to get you started.

The company website indicates that there will be ongoing personal and web-based support. The official Tupperware website is attractive and user-friendly and does a nice job of introducing the company and its products to potential customers, if there are any out there who haven’t grown up with Tupperware.

Final Thoughts

It is our opinion that Tupperware offers a quality product, has a great reputation. The company has been in existence for over 60 years and has shown the flexibility and ability to adapt to market changes. The company offers training and support for their advisors, and boasts higher-than-average party sales. The company is community-minded, and is affiliated with numerous civic organizations in the US and around the world. Tupperware Brands, Inc. was recognized in 2010 by Fortune as one of America’s most admired companies.

Thank you for reading this review. If you are currently involved with the company as a consultant or customer, we would love to hear your story. Please share a product testimonial or personal success story with the rest of our online community. Just scroll down a little bit on this page and type in your 150+ word message in the webworm. If your story is approved, it will be posted for the rest of the world to see and comment on.

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