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Rada Home Parties
Home Parties are a fun way to educate a group of people about Rada Cutlery and make some extra money through the party orders.
How It Works
Your Profit
You purchase products at wholesale prices, about half of the price in the Rada Cutlery catalog. Your Host receives free and discounted merchandise based on the amount of Regular Price Sales at the party. Guests can qualify for half-price items depending on their regular price purchases.
Your profit is approximately 38% to 44% for the Host and Guest orders (not including Guest half price items where you break even while providing the Guest an incentive to place a larger order with you).
The Annual Volume Purchase Discount program provides you the opportunity to reduce your wholesale prices by 2% to 10% based on your annual purchases.
Ordering
Your Guests place their orders using the Order Taker. Your Host places their order on the Host Order Summary. After the party, you’ll simply compile everything and place your order with Rada Mfg. Co.
You can find the details of the ordering process on the Reseller Order Form. If you order using the website, you can enter each Order Taker without the added hassle of tallying how many of each item is needed.
On the Reseller Order Form you will find your wholesale pricing. The minimum order is only $75. You will need to provide a sales tax permit with your first order (available through your state department of revenue).
Financial Overview
Host Rewards
To encourage Hosts to do parties (after all, without Hosts there would be no Home Parties!) you’ll offer free and discounted Rada Cutlery products based on how many sales you receive at their party.
The Host Rewards are outlined in the chart below.
| Party Sales | Hosts Free Items | Purchase Discount |
| $1,000 | $245 | 25% |
| $900 | $210 | 25% |
| $800 | $175 | 20% |
| $700 | $145 | 20% |
| $600 | $115 | 15% |
| $500 | $85 | 15% |
| $400 | $65 | 10% |
| $300 | $45 | 10% |
| $200 | $45 | 10% |
Guest Rewards
Our Home Party system also provides party guests with the opportunity to purchase items at half price when they hit a minimum regular price purchase as outlined in the chart below. These incentive prices encourage guests to order more items with you which means increased profit for your business.
| Regular Price Purchase | Half-Price Reward |
| $40.00 – $75.00 | 1 Knife OR Utensil |
| $75.01 – $110.00 | 2 Total Knives OR Utensils |
| $110.01 + | 3 Total Knives OR Utensils |
Your Home Party Sales Profit
Your overall profit for Home Party sales will fall between 38% and 44% (as shown in the chart below). Shipping costs are not included in the model below, but $2 or $3 will cover shipping for the order in the U.S.
| Party Sales | Product Cost | Party Profit | Cost of Items | Gross Profit $ | Gross Profit % |
| $1,000 | $500 | $500 | $122.50 | $377.50 | 37.8% |
| $900 | $450 | $450 | $105.00 | $345.00 | 38.3% |
| $800 | $400 | $400 | $87.50 | $312.50 | 39.1% |
| $700 | $350 | $350 | $72.50 | $277.50 | 39.6% |
| $600 | $300 | $300 | $57.50 | $242.50 | 40.4% |
| $500 | $250 | $250 | $42.50 | $207.50 | 41.5% |
| $400 | $200 | $200 | $32.50 | $167.50 | 41.9% |
| $300 | $150 | $150 | $22.50 | $127.50 | 42.5% |
| $200 | $100 | $100 | $12.50 | $87.50 | 43.8% |
Home Party Sales Materials
Home Party Catalog
The catalog will be your main selling tool at Home Parties. Hosts can use it to take outside orders and guests will use it during the party. Always be stocked up with catalogs, and remember new catalogs are released each year in August!
• Item CATP $.26 (each)
Host Order Summary
The Host Order Summary gives the Host an overview of the party sales and determines which reward levels the Host reached. This two part form also separates once completed to provide the Host a receipt.
• Item HOP $2.50 (Includes 50)
Home Party Order Takers
When placing orders, Guests will use the Order Taker to write in the items they wish to purchase. The chart for their Half-Price Reward is included on the form.
After the form is completed, it separates to provide the guest a receipt. Many resellers place a label with their contact information on the consultant lines so guests who may wish to host their own party can get in contact with you at a later date.
• Item OTP $2.50 (Includes 50)
