Originally Posted by GordonJ
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?
If the recent news of the many retailers downsizing or closing their doors is anywhere near correct, you wrote a great post. In fact, it is spot on.
Let me offer my opinion. I make no bones about the fact I own an insurance agency. The number of employees is zero since, as an owner, I am not an employee and I don't have any agents.
I also don't traffic in retail type profits.
I write a piece of paper, send it to the underwriter who either approves it or rejects it. If approved I get paid. If not, I don't. No inventory, no products, no nuthin but my pen and an app.
Of course I spend my time and effort in finding clients but so do hotsheet publishers and retail outfits. I'm not saying anything negative about hotsheets or other information products. Use to sell one until I got stupid and lazy and pulled it off the web. My loss.
Plus, once you buy, I get paid for up to 10 years depending on the company and if you keep the policy that long. Not a bad APV or hotsheet biz, right?
Anyway, you make a good point and just pointing out there are more ways to skin a cat in this ole world.
Here are 2 others I do as a sideline:
A guy can make a nice living never having even one product to sell. Simply finding the audience and making them aware of your wares is enough.
Keep up the mind candy. We need to hear it.