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Scentura also known as Scentura Creations is a perfume company based in the city of Chamblee, Georgia, within the Atlanta metropolitan area. The firm is a multilevel selling company which manufacturers inexpensive imitations of designer fragrances. Salespeople are sent out, often in pairs, to sell perfume door-to-door or in parking lots.
History
Larry Hahn is the founder of Scentura Creations. The company itself began in 1975 as W.M. Industries Inc. (WMI). WMI was a door-to-door retail business which sold products such as luggage, toys and perfume.
In a 1984 motivation film, Hahn described his early experience:
In 1975, with loans from friends, Hahn purchased his first product: 31-piece sets of bakeware. For several years Hahn trained new recruits himself. By the 1980s there were thousands of distributors.
Johnny Whitworth, a distributor of Larry Hahn, left the company to start his own perfume company, World Perfume in Dallas, Texas.
Criticism
In 1999 Scentura Creations, Inc sued Daniel J. Long, a former distributor, for $31,236.44, the cost of perfume which had been delivered to distributors recruited by Long. In 2001, the Illinois Appellate Court ruled that the contract between Scentura and Long was a "pyramid sales scheme", violated the law and was unenforceable. The appellate court ruled that Long was not liable for products in the possession of other distributors.
Independent distributors recruit salespeople by placing classified advertisements in the employment section of the newspaper under the heading of "Management". Turnover tends to be very high. Training is from six to eight weeks.
Sometimes, new salespeople are promised large salaries and are later disappointed to discover that the actual position has no salary and is a 100% commission job. The only income is from selling knock off perfume door-to-door or in parking lots. Employees are also sometimes encouraged by independent distributors to lie about the products they are selling. Scentura salespeople have been in trouble with police for soliciting without a permit.
Every manger and perfume salesperson must first sign an independent contract. Scentura representatives state that because these are independent contractors, Scentura is not responsible for either the ads or the tactics used by salespeople. Linda Fucci, a former administrative aide to Hahn and distributor, stated that "The independent contractor concept was preconceived before the first truck load was ordered in. It was already planned out before we ever opened up."
Scentura products are often sold in parking lots by salespeople who approach women and ask them to sniff a perfume sample. There is an urban legend that similar tactics were being used by thieves who, instead of using perfume, would have the victim inhale a substance (reportedly ether) which would render her unconscious, whereupon she would be robbed. Despite the fact that this legend is false, and there have been no credible reports of anyone being robbed in this way, sightings of Scentura salespeople in parking lots are often reported as evidence that this crime occurs.
Nationwide media coverage on the company has tended to be overwhelmingly negative.
Notes
- ^ a b c Stieffel, Kristen (September 2001). "Perfume Bandits. (Fake Perfume Offered In Parking Lots)". Orlando Business Journal 18 (16): 23 . http://www.accessmylibrary.com/premium/0286/0286-10231373.html . "Scentura is described by the Better Business Bureau as a "multilevel selling company." The firm manufacturers inexpensive imitations of designer fragrances. Salespeople are sent out, often in pairs, to hawk the product door-to-door or, yes, in parking lots."
- ^ a b c Thomas Jr., E. (October 5 1987). "Who Wants To Be Rich? Larry Hahn: From Sleeping In A Car To A $5 Million Home". Atlanta Business Chronicle 10 (19): 1 (5) . http://www.ripoffreport.com/reports/ripoff36647.htm .
- ^ "Scentura Creations, Inc. vs. Daniel J. Long". Appellate Court of Illinois Second District . http://www.state.il.us/court/Opinions/AppellateCourt/2001/2ndDistrict/September/Html/2000964.htm . Retrieved 2006-01-10 .
- ^ Atlanta Business Chronicle, "...Former managers point out that turnover of salespeople was high in their offices. “We had very few that would stay with us for a long period of time." Fucci says, “You never could back off from recruiting."
- ^ Intelligencer Journal, "'Crazy, Greedy ... Must like $$$, music and fun. Office and general work. Call Warren ... ,' reads Jentis' ad in all three local newspapers.", "Jentis said hundreds of people have passed through his doors, but admittedly few make the cut. One training class started with about 70; five remain.", "...the fledgling salespeople begin a four--to eight-week training program"
- ^ a b "Company Leaves Perfume Peddlers Feeling Betrayed". WFTV Orlando Channel 9 . July 20 2004 . http://www.wftv.com/news/3556228/detail.html . "They promised us that we would be making $30,000 a year," she says...There was no paycheck, but they could make a few bucks profit on each bottle sold.
- ^ The Palm Beach Post, "The interviewer said she had the qualifications to make $30,000 and more with the company-- if she could commit immediately...Butterworth asked about the $30,000 job an interviewer had mentioned. A recruiter told her, 'Don't worry about it, Pam. It's going to work out.' But it never did. The job was selling knockoffs of designer perfume door to door for a commission of $2 to $9 per bottle."
- ^ Columbus Ohio Dispatch, "The sellers, for example, said they were promised a weekly paycheck of $295 or more."
- ^ Noblesville Eyewitness News They said we're going to make like $75,000 the first year,' recalls Dan Penale.
- ^ Richmond Times - Dispatch (2002), "But, she said she had trouble getting straightforward answers to how much money she'd make and whether the job involved selling, which she did not want to do."
- ^ Richmond Times - Dispatch (2000), "When you first starting working for them, they say you get paid at least $200 a week...The only money I made was from perfume I sold on the street"
- ^ Intelligencer Journal, "After about two months, Jentis said that 'successful' salespersons are offered contracts with annual salaries ranging from '$30,000 to $35,000 and a car,' and that free vacations are commonplace."
- ^ a b Atlanta Business Chronicle, "None of their sales managers or salespeople, the people in the field, were on salary," says Gordan Gates, former WMI executive vice president. “They were all independent contractors."
- ^ WFTV.com, "...recruits like Shelby Sillen claim they were trained to lie and tell people they just left a perfume show and had to sell at cost...When another woman from EOE approached us, while we were undercover, to make a sale, suddenly the perfume "knock-offs" were the actual designer fragrances."
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Atlanta Business Chronicle, "An El Paso County, Texas, police report from April states: “The subjects ‘Managerial agents' for W.M. Industries, had employees selling their products on a door-to-door sales campaign and all were purporting that their products we
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