Pampered Chef: Behind The Scam Headline
There has been a lot of discussion about joining Pampered Chef as a way of making some extra income. Let’s set some things straight. In this article I’ll review the background of this business, and then go through the pros and cons of what the company offers. Then you can make up your own mind whether the “Pampered Chef scam” claims hold water.
About Pampered Chef
Pampered Chef Ltd. was founded in 1980 by Doris Christopher. Doris was a home economics teacher who had the idea of providing quality and functional kitchen products, and so was the beginning of Pampered Chef.
Today Pampered Chef is a global company operating in the United States, United Kingdom, Germany, Canada and Mexico. It is a direct seller of kitchen tools, cookbooks and food products, currently headquartered in Addison, Illinois.
Pampered Chef began by selling items to housewives through the party plan system or “cooking shows”. It is done by hosting a social event where the products are displayed and demonstrated, with orders taken before the gathering’s end. Pampered Chef products began to gain popularity in the 1990s, started its global presence in 1996 in Canada, and further expanded in the UK (1999), Germany (2000), and then into Mexico (2009). Most famously in network marketing circles, in 2002 the company was acquired by Warren Buffet’s Berkshire Hathaway Corporation which added legitimacy to the whole industry.
Anyway now it’s on to…
The Pros
First, the distributor (the Pampered Chef term is Consultant rather than representative or rep) gets sales training included when they join. This is a way to enhance one’s networking abilities and social skills. It is an advantage when you are looking for not just professional but also personal development.
Second, you can sell the cookware, kitchen and homeware items with marketing backup of a well-established company. It is easier to market when there is company support and strong brand recognition already established.
Third, bigger earnings come from assisting others to succeed. This multi-level compensation system means you earn not only on your personal sales, but also on the sales of others you refer to the business, so your long-term earning potential is far greater.
However unless the claims are overblown, the pro side of Pampered Chef isn’t going to be the thing that makes people think of it as a scam, so let’s review the other side too.
The Cons
Firstly, Pampered Chef products can be more expensive than similar products sold in retail stores. The value relies on the quality and efficacy, rather than discounted pricing.
Second, it takes time to grow a successful network of customers and particularly distributors because most people aren’t wanting a business, let alone a Pampered Chef business. It also takes a while to train people and you need to build your own leadership skills to keep their commitment to the business.
Third, there the fees. The Pampered Chef starter kit costs $155 for the New Consultant Kit or $80 for the New Consultant Mini Kit. After that there are requirements for doing shows, and purchases to stay active in the business and hold onto your “career sales”.
The Pampered Chef scam tag probably often comes from the fact that these investments are not always clear to people before they begin and this can lead to big headaches later.
The Verdict on Pampered Chef?
The Pampered Chef scam headline can be too easily thrown around. Naturally what Pampered Chef offers in high-end products is certainly not for everyone, and nor is the business system, but that isn’t the way to decide if it’s a scam or not.
Of course there are no guarantees of any return on your investment let alone a big one, but then again no start-up business guarantees success either. You are taking care of the advertising, the marketing, and selling for the company so it is important to appreciate the value in their products, as well as how to get other people to experience the benefits too.
You will probably start with people who already know you, but for a big business which can give you a steady, passive and building income you must also expand your network of contacts and connect with others who could become part of your business too. So do you have all the marketing skills you need to do this?
If you’re are wanting to market online I’d recommend you follow the proven methods of 6-figure+ network marketers for generating MLM prospects that will actually buy from you.
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Filed under MLM Companies by on Mar 2nd, 2011. Comment. 
Comments on Pampered Chef: Behind The Scam Headline
I think you presented an interesting and fair article. I have just a couple things to add. Most people would say that starting any business can be expensive. Spending $155 to get everything you need to start working your new business is a bargain! That’s like one trip to Costco! For your $155, you get $500 worth of products plus all the paperwork, training dvd’s and tools you need to start right away. I paid myself back for the cost of my kit with my first show. Also, if you decide six months or a year from now that you don’t want to do this anymore; you still have $500 bucks worth of quality kitchen tools that you keep! Where is the downside here?
@Amy:
Thankyou for your feedback Amy, and your additions.
Having great products is key. And yes you’re right, when you treat it as a business rather than a job or a pure commission sales position, then it is a very cheap way to get started. Thanks for highlighting that, and congratulations on your success so far!
Pampered Chef?? I saved my money and go to Sams or Costco. If you do sell these products make sure you surround yourself with lots of people who have good jobs. Those folks on moderate income are hard to sell because of the inflated prices of Pampered Chef. Be a wise spender.
@Ann M: Fair point Ann – I save my money and don’t buy Rolex. Pampered Chef is not a discount option, so you need to plan your marketing on that basis.
I’m lucky in being in an MLM that is substantially cheaper than the non-MLM competition, but this is pretty rare.
Excellent synopsis.
Motivated people with good social skills do well with these sorts of things. And the product itself you choose to sell is also key.
I think it is a bargain for what you receive from many of these types of companies.
Like Creative Memories. Many women did that just bcs the start up kit was so great, went through the motions of selling a few things, & then quit, bcs that was their goal all along.
Scentsty I think is another.
My daughter bought me a Scentsy product as a favor for a friend who was beginning & I find it to be a wonderful product. I would buy again.
So it’s all in how you package & deliver the product, as well as the value.
People who feel scammed i think need to look at the value vs effort they really want to apply.
@Badger40: Spot on. You have to love the product and see the value. And with Pampered Chef, CM & Scentsy good social skills are indeed important.
Most people stop at a hobby level rather than develop into a true business because they need to move beyond just friends and family who trust you. To go big, it needs a different attitude of NOT selling, but instead attracting people to your business.
Very fair article, thank you. But not knowing only comes from not asking what is expected of you. You would ask the same question if you were interviewing for a 9-5 job.
Though trying our apron on for size for the cost of the investment (when you consider your return) is really a win win all the way around.
Ann M., I see your point, but I will also point out, you get what you pay for and if you want something out of the budget, you find a way to get it. Some save, because we do offer warranties, or others host their own party to obtain Free, half price and discounted products. Others, see the quality and seize the opportunity to make additional money (or replace a poor paying job), earn free products, trips and much more as well as great friendships along the way.
Does costco give you an opportunity to get your desired product free for having some fun? Do they offer warranties? Can you go back to costco with your product after a year for a new one if something goes wrong? If yes, great.
BTW, our market is a WIDE range of incomes and ages.
Just food for thought.
Enjoyed everyones input.
@Beverly S.: MLM needs to be taken as seriously as any other business out there, as you say.
About the high end products I would have to have a problem with because as u do pay way to much money for each item where u can go and get the same item for much less just without the pampered name on it.I had a classic batter bowl witch just shattered after I took it out of microwave and I have not had that problem with other off brand name products.so long story short I will not recommend or buy anything from this company again because when I contacted them on phone they really didn’t care much.so warning to anyone else who might use any glass products from here just be careful not to use in microwave for a few minutes cuz it might shatter all over you.very dissappointed
@megan: Sorry to hear your story. Certainly a company with a premium price needs to have premium products. I hope others have better stories – in particular with the customer service aspect. I’m surprised the local distributor who retailed the products to you wasn’t in the loop about this. They certainly should care.
My Best friend introduced me to Pampered Chef. At first I thought it was 100% women’s products but after looking at it I saw what a great way to make a little extra cash. My wife and I will sign up together as a consultant and see how it goes. So far a lot of friends we’ve spoken with no what Pampered Chef is and would love to order with us already. To people saying pampered chef products are to expensive that’s not entirely true. In fact the catalog I looked through that my friend gave me had tons of products and I would say about 85% of those products were under 100.00 bucks. Yes their cookware is pricy but it also comes with a lifetime warranty. There is cookware that you can buy cheaper in stores but what happens after the warranty runs out? Most of Pampered Chef’s cookware is Lifetime warranty on them.
@Megan, actually Pampered Chef has great customer service and I’m not saying that because were going to be selling it soon but they have awesome customer service. Also did you follow the cooking instructions with using the glass in the microwave?? Also I’ve bought many cookware items from stores and guess what a year or two later when something happens to it then were out the warranty because it expired on us. Plus most of Pampered Chef’s items have a 3-5 year warranty. There is some things that have a year on them but still at least with pampered Chef if you have a defective item you contact them directly. Whoever you bought the pampered Chef item through, contact them and they will be able to help you out.
Were not expecting to make $1,000 bucks a month right away or even 6 months or a year from now but were hoping to at least make a little extra income to where we can pay bills with it or put it in savings. Yeah they have products in stores you can buy that might be cheaper but add in cost of gas, time and it will equal what you pay with pampered chef.
@Eric: Seems like you and your wife have a great start with the products, and seeing the income opportunity with it.
The easiest way to set a goal of $1000 a month is to do the figures as if you get ZERO duplication ie only retailing, and signing up Consultants who don’t end up doing anything. This way you have a realistic plan, with upside – and it is what you have to do to build a properly balanced team anyway.
Interesting article & very balanced. I’m a UK Pampered Chef Consultant, I started in Feb this year, with the hope of making a little part time cash. My thoughts were that the worst thing that could happen is that I’d spend £110, do 4 cooking shows, earn approx £200 & have lots of lovely, good quality kitchen products (The UK kit has a RRP of £345). If I never made it to my 5th show then it wasn’t the end of the world.
8 months later, I have submitted 33 cooking shows, earned approximately £2000 & have over £1000 in ‘free’ products. All for an investment of £110. I have a packed out diary for November and am well on my way to earning a free 5* holiday to Dubai in May.
But on top of all that there’s the things that you can’t account for when starting up a business. I’ve made some lovely friends, I’ve found the whole Pampered Chef ‘community’ to be full of wonderful people who fall over themselves to help you on your way to success. I have oodles more confidence than I did when I started, having spent 4 years out of the workplace and I love my job, it’s fun & sociable & it gives me ‘something else’ than the day to day chores.
The Pampered Chef is so much more than just another way to make money!
@Jo: Nice work, and the rest!
The money in fact COMES from succeeding in all the other ways you mention, in sales, in taking action, in building relationships, in learning from others, in surrounding yourself with successful people, and in developing yourself. And then with leadership, helping others do the same!
@Dr Martin Russell: If you go to the consultant you bought it from, they usually can get you your replacement. I have never had a problem and the customer service with pampered chef is one of the best. i am a consultant and had a deep covered bakers handle break off, I called customer service and they immediately shipped out another one without me having to send the broken one back. No questions asked. my suggestion next time go through your consultant they usually can help you out with the warranty and such.
@Nicole: Exactly what the consultant is for. Building the customer relationships. Excellent point.
So, exactly what kind of a malpractice suit do you have to get hit with to be reduced from a medical doctor to a pyramid marketer?
@Houston N: Oooh – low blow, from an unidentified source.
Medical ‘quacks’, and ‘pyramids’, do exist. Inaccurate slander doesn’t help people distinguish them from the real deal.
I agree the line can be pretty fine, and I’m sure you’ve already made your mind up Houston, but for those still searching for clarity here is the best marketing take I know onWhat is MLM.