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In this system, representatives of the sales organization, usually women, approach other women about hosting a social event in their homes during which a product will be demonstrated and offered for sale to guests. In consideration, they will be given hostess gifts and a portion of the proceeds from
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The party plan is regarded as primarily the invention of Norman W. Squires, who developed it for
Stanley Home Products in Westfield, MA, which company was founded by Stanley Beveridge and Catherine O'Brien in the mid-1930s. Mr. Beveridge and Ms. O'Brien were former employees of the
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for home party plan sales is the home party itself: the salesperson uses the home party business model as a source for future business by asking attendees if they would like to host selling parties, too.
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and sold to unsuspecting customers at a significantly higher price, although still lower than the retail price of the legitimate product. These inferior smuggled goods have been linked to
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parties that are not done through a dedicated program by the manufacturer differ, however, from these other parties in that the merchandise at these parties often consists of counterfeit
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At the event, the salesperson displays and demonstrates various products. She then takes orders from attendees. The salesperson is almost always paid solely a
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on sales. If the salesperson has recruited other sales people into the organization, then she also receives a commission based on her recruits' sales.
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the amount of goods sold. Frequently all in attendance will be given a token item of nominal value as an incentive to attend.
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The party plan is criticized for exploiting social conventions and pressuring "guests" into buying things they do not want.
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This plan has been used primarily to sell items whose main appeal is to women by women, such as kitchen
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of popular, name-brand purses. Merchandise at
American purse parties is usually bought in bulk from
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Counterfeit Bags May Have Links To
Organized Crime, Terrorism
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at which products will be offered for sale. It is a form of
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methods. For the service of organizing a celebration, see
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Direct selling through the party plan typically uses
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239:8 May 2003
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71:home decor
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179:USA Today
146:terrorism
134:smugglers
118:Criticism
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