PinkZebraHome.com sells fragrances in the form of candle wax melts and oils to the consumer through Independent Consultants who either direct the consumer to their personal website or who have product on hand to sell to the consumer.
Pink zebra home uses several different business models as a means of operations. The business model that is immediately noticeable is the Manufacturer (direct) model. This is a direct sales company which relies on Independent Consultants to connect consumers with the variety of fragrances and products offered by Pink Zebra Home. Because the product is not sold in stores, this business model is a very effectual model that is used by all direct sales companies, such as Avon, Scentsy, LulaRoe, and Paparazzi. The Manufacturer (direct) model uses Independent Consultants to bring the product to the consumer instead of waiting for the Consumer to find the product on a store shelf.
Another business model, used by Pink Zebra Home, addresses the way the company advertises its product to consumers. The advertising model that is used provides consultants with the resources that they need so that they can create their own marketing materials. These resources include the use of company logos and instructions in reference to specific requirements when designing our own flyers to market products to our target market. This allowance of the Consultant to be creative in the design of their flyers while maintaining the company logo for the purpose of branding. This model is profitable to the company because they don't incur expense by allowing the Consultant to be creative in reaching their targeted clients.
All customer orders placed with the company is done through an Independent Consultant. Whenever a new customer contacts the company needing assistance in completing an order, or in choosing a fragrance, the company will contact one of its ACTIVE consultants that live near the new customer. This is indicative of the brokerage model in which buyers are connected with active sellers in the area. This creates customer value by personalizing the purchasing and customer service experience. This model might not be very profitable for the consultant who represents the company if there are a number of consultants that live in the area that are considered active. At this moment, I am not sure what the process is for connecting new customers with consultants when there is more than one active consultant in the area.
Again, considering that a company can operate using various business models, another business model that Pink Zebra Home uses is the utility model. This model requires that orders are paid for in advance before the product is shipped out. This is a profitable business model for the company because it keeps them from having to deal with collections for orders that were shipped out on credit. When orders are entered, customers are taken directly to a check out page where they can pay for the orders before they are shopped and prepared for shipping (within 7 to 10 business days).
Having separate business models that addresses the various aspects of the company's operations is important towards the growth of the company. Using one business model straight across the board in reference to how the company operates might not necessary foster growth. For example, we have already stated that the company uses a manufacturer direct model when selling its products to their customers. Well, the company also offers fundraisers where the customer who hosts a fundraiser through the consultant can receive 40% from the company in return for orders that they have gathered on behalf of their organizations.
The company has recently found that there has not been much participation in the fundraisers, and for those who have been trying to do fundraisers, they have had much difficulty in getting sales. The company has had to pull the fundraiser option and reconsider the business model that they have previously used because it was not working. There is a community business model that is used by nonprofit organizations to do fund-raising for their organizations. The fact that the community business model works for nonprofits does not mean that it will have the same effect for organizations that are for profit. One of the reasons why it is thought that the fundraiser option has not been profitable is because many want to be able to purchase the items from the regular catalog. In reference to their fundraisers, there is a better way to make money. This does not necessarily mean that the company should not do fundraising, but they can consider the possibility of offering a different product, a more unique product that is not similar to that which is offered in the regular catalog.
In considering the company, Pink Zebra Home, there are two other business models that I have noticed that can only be seen from the consultant side of operations. Using the affiliate model, amazing incentive trips are offered to the consultants with the rewards being based upon the sales of the consultant. With the subscription model, all Independent Consultants pay a monthly fee in turn for having a personalized access to the company's website so that anyone who logs onto the website using the consultants login ID (www.pinkzebrahome.com/ESSENCEdePinkbyJodiLynn) is able to place an order and the consultant will get credit for it. Consultants are also able to choose to subscribe to the monthly Club Pink which would allow them to get a carton of the New Scent of the Month which is separate from the scents offered in the current catalog. The Club Pink is only available to consultants who have subscribed to participate in this monthly new release.
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