Business Review of Specialty Merchandise Corporation - Can They Really Help You Work from Home?
But what SMC doesn't say is that the retail prices in their catalog are astronomical. This means that, while you do get an approximate 60% off the retail price, that you cannot wholesale to businesses. Businesses won't be able to resell the items for a high enough price for them to make a profit.
Obtaining people to sell for you is no easy task either. Most people will be afraid to join your new home-based business as sellers. They'll fear that it's a pyramid scam. SMC isn't a pyramid scam, but it's hard to convince people of that. Often, you hear not to sign up with a business if you have to pay money upfront. But someone has to buy the catalogs, order forms, etc. And if you don't charge your potential sellers for these items then you're losing money. In my experience, people will promise to sell for you only to receive a free catalog.
Really, the only choice is for you to sell to customers directly. But how do you do this?
After you've sold to everyone you know and contacted your friends' friends, you start to wonder, what now? SMC recommends selling at swap meets (a.k.a. the flea market). I sold some bracelets, necklaces, etc. to this one guy who sells at swap meets. He had to sell them at the price that he paid me for them. In other words, he didn't make a profit. I'm not saying there isn't money to be made at a swap meet, but people do go there to find incredible bargains. And it isn't a bargain if you're selling new merchandise at a high retail price.
The other choice is selling online. SMC offers the choice to buy a website through them. However, it's completely over-priced and it's identical to everyone else's website who bought one from them. It really makes your home-based business look unprofessional.
You can buy your own website from one of the many places that sell them. But among other things, you'll need to know about website design. And keep in mind that the website is only the beginning. You'll need a shopping cart code, a merchant account to process credit cards, a business checking account to cash checks that are made out to your d.b.a. name (d.b.a. means "doing business as," it's your website/business name)...
The cheaper alternative is to buy the website, find a free shopping cart code, use one of those free online payment methods such as paypal, and have your customers make the checks or money orders out to your real name so you can cash them with your free personal checking account. Just keep in mind that some people are skeptical of buying from a website where they have to make the check or money order out to a person rather than a business name.
But will your online store have enough sales to justify spending all of that time and money to create it? I've had my online store that I created myself for about seven years now. And the SMC product section has never had one sale.
Is SMC an opportunity or a rip-off?
For some people, SMC is an excellent opportunity. At least, it is according to the testimonials that people make in the SMC infomercials and newsletters. Even though they are probably paid for their testimonials, it does seem that people are making money with SMC.
However, many people with SMC memberships end up doing what I do--selling to myself. For the discount that you receive, it is worth the yearly renewal fee (but not the initial membership fee). But the point was to have your own home business. And you don't have that if you're only selling to yourself.
What are some alternatives to SMC?
It is a simple process to apply for a tax ID number and then buy from wholesale companies. And a lot of these companies will drop-ship to your customers. The vast majority of them also do not charge a sign up fee. Compare that to SMC's $300 membership fee.
SMC isn't a rip-off. People do succeed with their company. However, SMC isn't the big money making opportunity that they lead people to believe either. SMC needs to be more honest about their prices and how their company works before people sign up.
Published by Angelie MacKenzie
Was also on the 2007 Top 1000 List. Writing has been a passion for as long as she can remember. View profile
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32 Comments
Post a CommentI have been a memberof SMC for 6 years now. I have retired from my 'real job' and am supporting a family of 6 solely on my SMC income. I will agree that the 'retail' prices do seem high but those prices are not written in stone, so I offer sales discounts and delas and do quite well. I did go with their website a little at a time, I waited until they had sales and free portions available. All told I have invested approximately $5000. Last year I purchased approx. $110,000 from SMC which I resold for $250,000, so I did not make a 60% profit as promised but I made enough to survive quite well. It didn't happen overnight it took me several years of figuring out what would work. I never had much to invest so I had no choice but to do it a little at a time. I have my own customer service rep who works wonders for me when needed and helps me with any problems. I have moved on to other products as well as continuing with SMC products. They were a great way to get started, who knws where I will end up.
Thank you for keeping me from making a big mistake. I was almost convinced. I received a really hard sell on the telephone.
A TOTAL RIP OFF!!! RUN AS FAST AS YOU CAN. SMC ONLY WANTS YOUR $59.95 MONTHLY DUES AND IT IS VERY DIFFICULT TO CANCEL OR DEACTIVATE!!!! SCAM ALERT!!!!!!!!
oh my gosh i just enrolled just2.95 now but i am very discourged now wish i read this first.if it sounds to good to be true it proberly is not.
Iappreciate the heads up on the tracking numbers Ill take all that info if it gets here. I called today but woman said it was 6:45 and call later. Chances are it wasnt shipped yet. The only people doing well on this is them. Need a class action lawsuit. Iwas never once told about the catalogs, and this is lack of forclosure.
I joined nyesterday and am quiting today how much is the catalog? I was never told I had to buy one?
Got the SMC package today, and it is heavy on getting upgrades to your website and adding a merchant account if you REALLY want to make $. That is frustrating when you are told that there will be only a $15 processing fee and $10 monthly membership fee to cover your website which is VERY spartan. In my opinion, what you can sell is a lot of cheap stuff--maybe well made plastic, cheap stuff, but not your usual hot items such as electronic gadgetry. I was disappointed. By way of seeking out ways to augment my income with this program, for making extra income in which you only find 5 people to duplicate what can be done in about ~ 45 minutes. You will want to check this out as a robust, potential way of earning money:
http://EZ2JustDoIt.ws
Best wishes to all spare income seekers!
I bought into SMC also and all I can say is the product is shit, their company is shit, and the people I delt with there are shit...All the way to teh top. Do yourself a favor, find tou a product you like and sell it, over time you will grow and find more and better products that don't cost you anything.
Back in 2003, I saw the infommercial on TV and after receiving the brochure, ordered the kit. Then I became sidetracked by other things, and forgot all about it. About a year ago, I saw the infommercial again and decided to dig that kit out of my closet. I called SMC to see about getting started and figured that it would be a small charge to get an upgraded kit. Seeing as I paid over $300 for the one I had, it didn't seem to be a problem. The woman I spoke to said that I would have to buy a new one at the current cost. She was very pushy, and when I told her that I wouldn't do that, she hung up. Real professional!
I worked at SMC.
If you join it you are a fool.
I don't remember a whole lot because it's been a long time since I've worked for them but, one detail I do remember is that...
ONLY 5% of "members" make any money.
Do yourself and your family a favor.
DO NOT JOIN SMC
You WILL regret it.