Specialty Products vs Info Products.
The SCI filing caused a discussion. And I think Ben would do well going back to his roots, paper and ink.
However, there is a perception that Specialty Products, like the EdenPure heaters, are a more valuable way to profit. So, my simple question to all of you, is this:
Consider a heater made in China, shipped here, transported to Ohio, stocked, sold, returns/refunds, and keeping supply. VS.
A guy dictating his stock market forecasts. Which do you think has the higher profit margins? Well it really is more about a big company with overhead and employees vs a small guy with all the control vs the 400 pound gorilla with layers of staff and scores of employees. Redundant by choice to make a point!
Sure, SCI has sold a BILLION dollars of the EdenPure Heater (according to their website) and whatever the profit was, it had to be used to pay for a lot of overhead and labor, leaving the Entrepreneur with a small % net profits, OH, don't weep for Ben, that was probably MILLIONS.
But most of us, at least I think so, would rather operate little one man shops, and you can deal in products, like Harvey Brody... which is a great business model, but more my cup of tea is old junior high classmate Dennis Gartman, who offers his daily newsletter for several hundred dollars (more than the top line heater) and does, pretty, pretty, pretty good for a guy in complete control of his business.
And Dennis is just one of dozens of INFORMATION product sellers doing well, probably none better than Bill Bonner of Agora Inc. They publish all kinds of newsletters, do OK in the digital world, and to my knowledge, they have never had to worry about whether the 9 year old kid in China was able to do his full day of work, let alone a newsletter being held up at customs or "lost at sea" (held ransom) and
I doubt if they ever had to repair or service one of their info products and resend it.
Just Saying. Go and grow as big you want, hire all the friends and family you want, OR, get your little info empire started with a one page hotsheet.
With Amazon in the game, more and more marketers of items, products and imports are going to be learning the ins and outs of Chapter 11 or 7.
What do you think?
GordonJ
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