Direct sale companies, like Meridian's Scentsy, thrive in downturn

 

August 12, 2009

It's an interesting concept: wickless scented candles that don't use flame, but rather melt from the heat of a 25-watt bulb in a decorative candle warmer. Even without a salesperson's insistence that "scents bring people together," you might be inclined to make a purchase, just to see what all the fuss is about.

This reaction is largely responsible for Meridian company Scentsy's explosive growth.

Four years ago, Scentsy operated in a 40-foot, air-conditioned ocean-freight container on a sheep farm. In five years, it has grown more than 300 percent annually. Its revenue was $109 million in the year that ended June 30.

But you won't find Scentsy candles in stores. Scentsy is what is known as a direct-selling company, whose salespeople make direct contact with consumers to sell the product.

Scentsy is one of three Idaho direct-selling companies to be honored this year by the Direct Sale Association, a national trade association that gives just five awards annually. The other Idaho winners are Oxyfresh, a Coeur d'Alene company that sells personal hygiene and wellness products, and ServiceQuest, an Idaho Falls company that consults for direct-sale companies to help them grow.

"It's amazing that most of our awards went to Idaho this year," said Neil Offen, the association's president. "We have member companies all over the United States, so the competition was fierce."

These are good times for companies like Scentsy. Direct-selling companies often see an upswing during times of recession, Offen said. People facing reduced hours or who are simply out of work see direct sales as a way to keep afloat.

"The higher the unemployment rate, the more people get involved in direct selling," Offen said. "Direct selling provides primarily part-time supplemental income. What better time to get started than in a recession?"

SCENTSY: GREAT SMELLS FROM A SHEEP FARM....

Read the full article from IdahoStatesman.com.

BY NATE KNIFE - Idaho Statesman
Copyright: © 2009 Idaho Statesman

Scentsy Opens New Distribution Center In Lexington, Kentucky

 

July 06, 2009

Scentsy Inc. will invest $750,000 in the opening of a new distribution center in Lexington, Kentucky and will create 70 to 100 jobs by the end of 2009.

Scentsy has established new operations in W.T. Young Storage’s Orange building at 2471 Palumbo Drive and will occupy approximately 80,000 square feet, according to a news release from Commerce Lexington Inc.

Scentsy is a party plan company offering a variety of scented, wickless candles heated in decorative ceramic warmers, and other fragrance products.

“We are delighted to be opening a new distribution facility in Kentucky,” said Orville Thompson, CEO and president of Scentsy. “Lexington offers Scentsy an exceptional business environment and a strong core of skilled job candidates. The strategic expansion of our distribution operations here allows us to increase our service levels and streamline delivery to our expanding customer base in the eastern U.S., Puerto Rico, and other international locations.”

SCENTSY WINS FIRST RISING STAR AWARD

 

June 2009

Honor recognizes Scentsy’s commitment to simplicity, quality and value

MERIDIAN, Idaho (June 11, 2009) – The Direct Selling Association (DSA) recently presented its 2009 annual industry awards for outstanding achievement and honored Scentsy, Inc. with the first ever Rising Star Award at the DSA Annual Meeting in Washington, DC. The Rising Star Award is presented annually to one up-and-coming direct selling company that has dedicated itself to achieving a high standard of excellence in business operations.

Scentsy opened its doors in 2004 with the idea of offering a safe, wickless alternative to burning candles in homes and offices. Scentsy experienced record growth as customers saw its decorative warmers as not just a safer alternative but as a better alternative. Scentsy’s success can be attributed to a simple and valuable product line sold through independent consultants at home parties.

“We always strive at Scentsy to bring value to customers by creating and selling high-quality products that warm the heart, enliven the senses, and inspire the soul,” said Orville Thompson, Scentsy CEO and co-owner. “We are honored that the DSA awards committee has recognized our singular focus on quality and value in the midst of tremendous growth.”

“This award further validates the success we have experienced,” said Heidi Thompson, Executive Vice President and co-owner. “But our success is merely a byproduct of passionate customers and consultants, and an outstanding corporate team, who have shown great enthusiasm for our products and parties.”

Each year the Direct Selling Association gathers for its annual meeting and hosts its annual Awards Banquet. The DSA presented awards in the areas of technology innovation, partnership, salesforce development and program excellence. The five companies honored during the association’s annual meeting were ACN Inc., Mary Kay Inc., Oxyfresh.com, Scentsy Inc. and ServiceQuest. Oxyfresh.com, ServiceQuest and Scentsy are all based in Idaho.

About Scentsy

Scentsy, Inc. is a rapidly growing party plan company offering a variety of scented, wickless candles heated in decorative ceramic warmers, and other fragrance products. The simplicity and value of its products provide a better alternative to burning wicked candles in the home and office. What began in 2004 in a 40-foot ocean container on a small Idaho sheep farm is now a national company growing 300 percent annually with more than 35,000 independent consultants in the United States, Puerto Rico and Guam. Visit us at Scentsy.com.

 

About the Direct Selling Association

DSA is the national trade association of the leading firms that manufacture and distribute goods and services sold directly to consumers. Among its more than 250 active and pending members are companies selling both via a party-plan method and in the traditional person-to-person style. In 2007, U.S. direct sales were more than $30.8 billion with more than 15 million direct sellers nationwide. The vast majority are independent business people – micro-entrepreneurs – whose purpose is to sell the product/service of the company they voluntarily choose to represent. Approximately 90 percent of direct sellers operate their business part-time.

For more information on direct selling, DSA and its Code of Ethics, please visit the DSA website at dsa.org.

ABOUT SCENTSY

 

Scentsy Company Profile:

Founded : 2004

Mission Statement

To bring value to the world by providing an industry leading, family-friendly business opportunity selling creative, artistic, high-quality wickless and flameless candle products that warm the heart, enliven the senses, and inspire the soul.

Our Story

Scentsy “Makes Perfect Scents”. We are pioneering the move away from the smoky, sooty candles of today to safe, healthy, fun and creative ways to bring the scents that make us happy into our lives. We offer over 80 high quality flameless fragrances delivered in a variety of ways. Our flagship product is the Authentic Scentsy Bar, an impressively fragrant wickless candle bar that is warmed in a warmer rather than burned with a flame.

Each year thousands of homes are damaged or destroyed by burning candles. The enthusiastic response we receive from our customers, our consultants, and more particularly fire-fighters, reflects the nationwide concern over the devastation burning candles can cause. This was our initial motivation – to create a safe alternative to burning candles - flameless candles. Our passion has grown from offering a safe alternative to offering a better alternative. Going wickless has allowed us to offer the public a better, more cost effective method of scenting their world. Visit our Safe Candles blog to learn more about how Scentsy Wickless Candles are a safe alternative to wicked candles.

How We Work

A secret combination of ingredients is used to create a pool of melted wax, which is transformed into a wickless candle bar. Only the finest scented oils are hand-picked to give an array of aromas. The melted wax is poured into reusable containers for easy storage.

The wax is poured in an assortment of containers, giving the consultants party testers, basket testers and of course, Scentsy Bars to share with their customers. Scentsy Room sprays and car candles are also produced in the warehouse.

Scentsy hand packs each order, ensuring the correct items come right to your door in a timely manner. By using UPS, your order can be tracked the moment it leaves the warehouse. Orders are typically shipped directly to the hostess, or can be shipped direct for a minimal cost.

Our hand-picked staff adds a little bit of Scentsy Spirit into each hand-packed box. Scentsy believes that every employee, consultant, hostess and customer are part of the Scentsy Family.