| What is Specialty Merchandise Corporation? | | | | to the fact that you have no inventory, your costs are |
| You have probably seen advertisements on TV for | | | | low, you don't need a large storage space and you |
| Specialty Merchandise Corporation (SMC) and found | | | | don't need to hire a lot of people. In fact you can |
| yourself interested and wanting to investigate further. | | | | probably get it all done yourself, which makes success |
| The advertisement says that SMC gives you freedom | | | | even more powerful. Because you do not store any |
| to work from home and achieve your goals. So what | | | | inventory, you do not have to worry about shipping |
| is SMC and how does it allow you to work from | | | | and packaging either. Any fees or costs associated |
| home? They are a massive warehouse full of | | | | with the operation can be built into the price of the |
| merchandise and they allow their members to buy | | | | product. This is why SMC offers such an attractive |
| their products at wholesale prices and sell them at a | | | | opportunity. |
| huge markup without ever having to store any | | | | Disadvantages to SMC Business Model |
| inventory of their own. This business model is known | | | | One mistake that many people make when getting |
| as drop shipping. Drop shipping is where you as the | | | | into this business with SMC, is to think that SMC will set |
| owner of a business advertise and sell products on | | | | a framework for you and help you run your business |
| your website. When someone makes a purchase, you | | | | day to day. Running an online store, selling items from |
| order the product from the drop shipper, which is SMC | | | | SMC, is essentially the same as running any other |
| in this case, and they send it directly to your customer. | | | | business with one difference. You don't have inventory |
| The CEO of the company states that his ultimate | | | | to worry about. You still have to know how to prepare |
| motivation is to put people in business. When Abe | | | | yourself for taxes and protect your self from |
| Levine started this business he claims that he had two | | | | consumers. You still need to keep track of your |
| choices. One, to hire a sales force, or two, to put | | | | accounting and keep good records. You may have to |
| people into business for themselves selling his product. | | | | get a state and city retail tax license...all things they |
| I'm not sure there is a huge difference here from his | | | | don't tell you about, or assist you with. Just because |
| point of view. Whether he gave people the opportunity | | | | the infomercial makes this sound effortless does not |
| to start a business or he hired them, his products are | | | | mean it is. In fact most people do not make money by |
| still getting sold. For the business owner involved in | | | | putting in no effort at all. You typically make money |
| SMC, the benefit is that you have the freedom to be | | | | consistent with the effort or efficiency you put in. Drop |
| your own boss and you get some tax benefits. You | | | | shipping companies like SMC often charge a fee for |
| always wonder when business opportunities make | | | | their drop shipping services, which could cut into your |
| claims like "Our fundamental goal is to help you start | | | | overall profit margin. The other thing is that the Internet |
| and build a successful business." The fundamental goal | | | | is the largest and most diverse market on the earth. |
| is to make money and the executives believe that | | | | What this means is that no matter what you sell, |
| helping people start a business is the best way to | | | | chances are there will be quite a few people that are |
| move products. | | | | looking for it. The key though is if people are looking for |
| Advantages to SMC Business Model | | | | what you are selling, how do you make it visible to |
| As you might know there are many advantages to | | | | them. This requires marketing your website and |
| SMC or companies like it. First you have the | | | | optimizing it. SMC does not tell you on its infomercials |
| opportunity to become a business owner. This means | | | | or its website what it takes to market your store and |
| the scheduling of your own time and having the | | | | products. This is the key to making money online, not |
| freedom to work for yourself and not for someone | | | | the specific business model. |
| else. Owning a business also offers people the | | | | I am by no means stating that this business model is |
| opportunity for huge tax benefits that always are | | | | bad or that you cannot make money using these |
| attractive. Another huge advantage SMC offers is you | | | | methods. I am simply stating that its not as easy as it |
| are buying the products at really large discounts, | | | | sounds on TV and requires certain marketing skills to |
| meaning you have the flexibility to sell the product and | | | | see any real profits. |
| different price points to beat out the competition. Due | | | | |