Specialty Merchandise Corporation: The Real Deal
Much has been said about Specialty Merchandise Corporation (SMC) since its founding more than 60 years ago. There is plenty of negative press out there claiming that SMC scams consumers and takes their money, but many of these complaints are logged by SMC’s drop-shipping competitors and former members who were not able to translate their personal business model into revenue. The following is an objective review of the SMC program and its earning potential.
What is Specialty Merchandise Corporation?
Basically, Specialty Merchandise Corporation is a home-based business venture that allows members to resell products for profit. The company has a huge inventory of more than 3,500 individual items including jewelry, home décor items, antique reproductions, giftware, and more. Members buy these items below wholesale cost, then mark them up and resell to consumers for a profit. Specialty Merchandise Corporation has advertised in small business publications and on television for years.
Specialty Merchandise Corporation is a drop-ship company, which means that they control all the inventory and process shipping and delivery of all orders. Members never have to stock items or handle shipping. Individual vendors advertise and market SMC’s products under their own business name through traditional retail outlets like stores, flea markets or swap meets or via websites and online auctions. When products are ordered through an Specialty Merchandise Corporation vendor the items are delivered directly to the consumer. Members receive a commission on every sale they make.
What are the Benefits of Selling through Specialty Merchandise Corporation?
For sellers, the benefits of selling with Specialty Merchandise Corporation are numerous.
First, there is SMC’s extensive inventory to choose from. Most successful vendors choose niche marketing strategies, in which they select a handful of items or a particular product line that appeals to a very specific audience. This could be something as general as jewelry or as targeted as Christmas ornaments. Other sellers choose a blanket approach, in which they offer several different product line catalogues and market to a broader audience. Either way, SMC’s vast array of merchandise is a clear advantage.
Second, members purchase SMC merchandise at a steep discount – prices are often lower than wholesale. This makes it possible to sell higher volume, which generates more income. SMC sets no limits on how much or how little their members can purchase.
Third, SMC is a drop-shipping company. This means that independent sellers don’t have to make room in their homes or rent warehouse space to store inventory. Products can be purchased from SMC and shipped to customers as orders come in. This is a particularly economical way to generate income, as there is virtually no risk of a vendor paying for unsold merchandise.
Finally, SMC gives members the freedom to set up their own business model. Vendors are truly independent small business owners who are able to take advantage of all applicable tax breaks. Specialty Merchandise Corporation products can be sold anywhere: at flea markets, through online auction sites like eBay, via personal internet stores, in traditional retail outlets, by mail, at in-home parties, and more. SMC provides customized marketing and advertising tips for each type of sales strategy.
What are the Drawbacks?
Specialty Merchandise Corporation does not promise to deliver instant results. As with any worthwhile business venture, vendors must devote significant hard work and time in order to succeed.
The biggest disadvantage to selling SMC products is the company’s wide and established reputation. Millions of people know about SMC and thousands are currently selling their products. Furthermore, the company’s legacy has spawned hundreds of copycat organizations following the same business model. This means tight competition for vendors, and could necessitate expensive upgrades like a better website and comprehensive marketing plan. This is why niche marketing has become a popular way to sell SMC merchandise.
Another drawback is that some merchandise seems to be priced rather high, even at below wholesale prices. Vendors have to mark up these items significantly in order to generate a profit, but that sometimes makes the products harder to sell. Some items are so tough to price that the only way to make a profit is to buy in bulk and aim for high volume sales.
Membership in SMC can be pricey, and many critics have cited the high cost of membership as indicative of a Specialty Merchandise Corporation rip-off. Supporters, however, note all that is included in the membership package. There are marketing materials, sales tools, product catalogues, and 12 weeks of support from a personal SMC business coach. Though some feel these materials are overpriced, successful SMC members attribute much of their accomplishment to the information and support included in their membership package.
What Do SMC Members Say?
Admittedly, reviews for SMC are mixed. Some members have had great success and have been able to stop working traditional nine-to-five jobs in order to devote more time to their SMC business; others have fallen short of their sales goals and claim that Specialty Merchandise Corporation scams consumers with unrealistic promises of financial security. The truth lies somewhere in the middle.
Members who treat SMC as any other business venture – carefully researching a target market, devoting significant time and energy to advertising and marketing, learning and employing proven sales techniques, and investing in the business – have been able to achieve excellent results.
Members who had unrealistic expectations or failed to thoroughly research the company before investing in a business opportunity are often the ones who claim SMC is not a legitimate enterprise. These members may have expected quick and easy profits, may have been unfamiliar with sales techniques, or may not have had the time or inclination to grow their business.
The Bottom Line
Vendors who have the most success with Specialty Merchandise Corporation tend to target a niche market with their product offerings: holiday home décor, fine jewelry, garden supplies, children’s items, etc. These successful sellers also tend to adjust their prices to compete with others in the market, and aren’t afraid to research and experiment with different items to find out what sells.
Selling SMC products will not make anyone a millionaire overnight, nor will it bankrupt those who don’t find success. This is a business opportunity that should be approached with caution, an open mind, and realistic expectations. Members are encouraged to take advantage of SMC’s customer service and helpful sales tools in order to make the most of their membership.