SCENTSY NEWS UPDATE
Price Change for Plug-In Warmers
Beginning March 1, ALL Plug-In Warmers will increase in price to $20 in the U.S. and $24 in Canada. This strategic decision is necessary for several reasons. When we removed Plug-Ins from the product list in Canada, we noticed something surprising; the average party order volume in Canada actually went UP rather than DOWN. It seems that Plug-Ins have been decreasing the average per-person partyorder volume. Also, because Plug-Ins are sold at a significantly lower price point than our Mid-Size
or Full-Size Warmers, many customers choose one as their first warmer option. An unintended consequence of this choice can be a poor fragrance experience. If the customer places it in a large room, they may be disappointed with the strength and throw of the fragrance. They aren’t falling in love with Scentsy the way many others do when they start with a larger warmer.
Increasing the price of the Plug-In enhances our value proposition and closes the price gap between the Plug-In Warmer and Mid-Size or Full-Size Warmers. This change will make it easier for customers to select the larger size warmers to increase your average party volume AND give your customer a more favorable scent experience.
Expansion into New Markets
Scentsy is embarking on an exciting new adventure—we’ll open the doors to Europe in the spring! Key executives will be going to the United Kingdom and Germany in March to meet with our existing Consultants on military bases and with any other interested prospects who want to learn about Scentsy.
We’re working on catalogs, Starter Kits, enrollment documents, and all of the other tools we will need to successfully launch this international venture. We will allow existing Scentsy Consultants to sponsor in these new markets, but will not allow crossborder
sales. Our hope is to grow our European base organically and virally, just as Scentsy, Inc. has grown in the U.S. and Canada.
We hope you are as excited and energized by this expansion as we all are. We can’t wait to share Scentsy in Europe, and look forward to learning all we can in the UK and Germany so we can use that learning to launch in other countries throughout the world.
Thank you for all you have done to make this expansion possible. We’ll be sharing more details on the launch as our plans are finalized in the next few weeks and months.
New Scentsy “Campus” Plans
Thanks to great teamwork, great products—and especially, great Consultants—Scentsy’s continued growth and success means we can invest in even better corporate facilities to give you even better service and support.
In July of 2010 most of our staff moved to our current, brand-new office facility, which allowed our shipping, kitting and warehousing operations to take over the existing Lanark Street location. Manufacturing moved to its own new location down the street.
Now, because of the continuing growth you have fueled, we will soon consolidate all of our home office—manufacturing, shipping, distribution, Consultant Support, and the entire home office team—in a new Scentsy campus based in Meridian, Idaho.
Construction has already begun and the campus will span multiple acres, including an expanded manufacturing facility, a bigger warehouse, a new distribution center, an events center, and a new office tower. The new space will also help us continue to
improve our workflows and processes. We expect to occupy each building as it is built and ready, with all of the Scentsy headquarters staff working from this new campus by 2013.
