Business Lyceum
e-Letter
Practical
Instruction in the Arts and Sciences of Making Money
Editor/Publisher: J.F. (Jim) Straw
MARCH 2002
Greetings & Salutations:
This month, I'm going to clear out some of my files and handle
a ho'bunch of ...
Questions & Answers, Comments
& Other Good Stuff!
Let's start the ball rolling with a message I received from:
Roosevelt Jones ...
"Jim, I have noticed an increasing number of my fellow
e-Letter readers are searching for drop ship and wholesale resources.
Well, I have created a web site dedicated to drop shipping and
direct response marketing. It features a "true"
drop ship sources database for over 500,000 name brand products
and an online catalog of closeout/discontinued merchandise at
incredible prices. I would appreciate you letting your readers
know about the site."
Okay, gang, if you're into drop ship selling or mailorder,
Roosevelt might just have what you need. -- Take a look-see at:
http://dropship.netfirms.com
On the same subject ...
John Schulte wrote:
"Here is something for your readers ... Looking for Opportunities
in Direct Marketing? (Catalog Selling, Infomercials, Web
Marketing, Direct Mail, etc.) -- Check out the National Mail
Order Association -- http://www.nmoa.org
-- You can find new products to sell, new lists for marketing,
and a wide variety of other pertinent information & contacts
covering all facets of Mail Order and Direct Marketing. We also
review new products from manufacturers each week."
Looks like John's got it all together - and - you can get
a Free Issue his "Mail Order Digest" at:
http://www.nmoa.org/comments.htm
Then ...
My ol'friend, Ron Coble wanted
me to tell you:
"Jim, I read your latest issue with great interest and
thought I would send you a link to one of the most recent issues
of an online newsletter ... International Trade - Business-to-Business
Newsletter ... I started last year. -- If you find it interesting,
I would appreciate it if you would give it mention in one of
your upcoming editions of the Business Lyceum e-Letter. -- Keep
up the great work with the Lyceum!"
Yes, Ron ... I found it most interesting with a lotta go-o-o-od
stuff in it. -- And, I'm telling the e-Letter gang to go take
a look at it at:
http://www.importexporthelp.com/b2bv1i6.htm
Debbie Jones wanted to know:
"I ordered a manual from ACL (Association of Certified
Liquidators) about two years ago and I decided to start doing
the business this past summer. So, when I called in October
they had close up. -- I was so hurt because in the manual they
told how to make money being a liquidator. You could locate
the merchandise and they would buy and sell it for you and then
give you 50% of the money. I have located some merchandise
but I am having problems locating a buyer. Can you give
me any advise on how to find buyers. I know it's
money to be made in this business."
Debbie:
Shhh! Don't tell nobody. Here's the "secret"
to finding closeout buyers.
Look for either the "sellers of closeouts," or the
"sellers of the specific product."
Every company that "sells" closeouts also has to
"buy" the closeouts they sell - and - every company
that "sells" anything also has to "buy" those
items to sell.
For example purposes, let's pretend that you have found a
closeout inventory of Roller Skates.
Just look through the various, and many, closeout directories
and find those "sellers" who sell CLOSEOUT sporting
goods, games and toys. -- Send them a brief note advising them
that you have X-number of Roller Skates available at closeout
for X-dollars per pair (or the price for the whole lot). -- Since
those companies could "sell" closeout Roller Skates
to their regular customers, they might want the lot you have
found. - OR ...
Take a look through your Telephone Book Yellow Pages and find
the stores that "sell" Roller Skates. -- Needless to
say, they won't buy the whole lot - but - you can get Purchase
Orders from them for as many pairs as they need. Then,
keep contacting the stores that sell Roller Skates until you
have enough orders to cover all of the Roller Skates you have.
- AND ...
Last, but not least, locate the Manufacturer (Importer or
Major Wholesaler) of the "brand" of Roller Skates you
have found. -- In many cases, you can actually sell the Roller
Skates back to the Manufacturer "cheaper" than they
can make them. -- In that case, the manufacturer will buy the
skates from you to resell as "new" to their customers.
(I've done that hundreds of times.)
William Courser asked:
"Jim, I have a question for you about what I have been
trying to do with my home based wig business. -- So many people
promise so many things, or they need so much money, or the information
is so complicated that only the one doing the book selling makes
out. -- I am not directing this to you but, that often is the
case. -- You appear to be somewhat of a humble human and you
certainly have done enough things over the years. -- I know there
are no guarantees in life, but, I thought I would like to get
your view on me doing a wig business and maybe wig and hair supplies
through mail order and maybe on the internet. -- I would like
to open a wig and hairpiece salon in the very near future.
Can you give me any advice. -- Thank you for taking the time."
Bill:
Believe it or not ... in the late 60s & early 70s, I was
one of the largest wig dealers in the southeast ... Discount
Wig Centers, Jim Diamond Wigs, Peek-A-Boo Wig Shops, Ballerina
Wigs were all mine.
Haven't had anything to do with the wig business since about
1976 -- don't even know how profitable it is today. Back
then, a wig that cost me 50 cents from Korea sold for $19.95
in my shops.
One problem however ... none of us who tried to sell Wigs
by mail ever made any money trying to sell to women who wore
wigs - but - we did make a bundle selling wigs by mail to the
beauty salons and wig shops. -- For that reason, I don't recommend
mailorder if you are planning to sell to women who wear wigs
(they want to try-it-on; feel the texture; have it styled to
suit them ... which can't be done by mail). Eva Gabor,
Diana Ross, and bunch of others (besides me) tried selling direct
to the consumer by mail but ended up selling to the retailers
instead.
If you are going to sell wigs from home, you might want to
set up a "Wig Party Plan." -- My Jim Diamond Wigs used
to have Wig Parties where our customers could invite their friends
and earn a Free Wig; or a commission, from the sales made at
the party. Sometimes we held the parties in the customer's
home; other times we held the party in a rented motel room. --
A few times, we ran a "Wig Party" in an out of town
motel and advertised it in the local newspaper (worked really
well in areas where there wasn't a local wig shop). --
Don't know. It might work today. -- If you try it, let
me know how it goes.
Kenetra Ahlaam wanted to know:
"Thanks for sending the course so quickly. I have a question
for you. Once I have an option on a piece of real estate and
have a buyer that wants to purchase my option ... what paperwork
is needed and what is the process flow. -- Same question applies
now I have a buyer for the property itself ... what are the steps."
Kenetra:
Although you can do it yourself, it is usually best not to.
Best thing is to find an attorney in your area who does Real
Estate deals for the Real Estate Agents. They usually have
all the necessary forms available and can get the deal done.
When you sell an option, all you really need to have done
is an "Assignment" ... which, in effect, assigns your
interest in the option to a third party. (If you don't
want to use an attorney, you can get copies of standard "Assignment"
forms at most office supply stores.)
When you sell the property, you need to do what is called
a double-closing ... you "buy" the property in one
room at the lawyer's office; while you "sell" the property
in another room. The lawyer holds the funds from the sale,
pays for the property, and gives you the difference (less their
fee, of course).
Anony Mouse wanted some advice for his daughter:
"My daughter is interested in being a supplier of products
for the hair salons in this area. She worked as a beautician
for a year before getting a degree in business administration.
The man who sells products to all the shops is from out of town
and they have to wait on him (so there is a need). She called
the only company doing business in town but they are not interested
(probably protecting the traveling salesman). I wonder if another
company would be interested."
Hey, Mouse ...
Interestingly ... I opened a Beauty & Barber Supply House
in 1967 ... under the same conditions your daughter is considering;
there was NO supply source within 50 miles so I thought I was
on to a big winner. Turned out the reason there wasn't
a supply house there was because the area couldn't support it
without outside sales people covering a much wider area - BUT
... I ended up making a bunch of money when I began selling wigs
& subsequently became the largest wig dealer in the southeastern
U.S.
Anywho ... if your daughter wants to pursue the Beauty &
Barber Supply industry, here's a method she can use. I
used it myself when my Supply House was just starting ... saved
me a bundle in inventory cost & let me learn from experience
why there wasn't any other supply house in the area.
When I started, I didn't have money enough to buy the beauty
& barber supplies to stock my shelves - so - I went to a
BIG supply house 100 miles away and made a deal with them to
give me a van full of supplies on "consignment" at
25% off the wholesale price to the beauty & barber shops.
-- The BIG supply house didn't have any salesmen in my area,
so I sorta became their sales force in my area. (I'm sure
your daughter can find a supply house that doesn't cover her
area.)
I loaded up my van with their inventory ... took it back to
my shop and stocked my shelves. -- The local beauticians &
barbers didn't come to my store, so I put the inventory back
in the van and started calling on the shops in the surrounding
area. -- Paying for the inventory as I sold it & restocking
my van at the same time with more inventory from the BIG supply
house. -- I made enough to keep eating; until I discovered the
wigs.
By the way, I made more sales from the van than the salesmen
did who only took orders, because I could deliver the goods right
then & there.
Some years ago, I wrote a report about "borrowing inventory"
that related the above story. I made more money selling
the report than I did selling the beauty & barber supplies.
Tell your daughter how I did it. She can probably make
a deal with any of the BIG supply houses at least 100 miles from
her locale. They are always looking for sales people and
are usually familiar with the "consignment" arrangement.
By the way, warn your daughter NOT to let the beauticians
& barbers buy from her on credit. -- Statistically they are
an 80% no pay. (I think I still have a stack of unpaid
accounts from 30 years ago.)
If I can be of any assistance, just ASK ... I been there,
done that, bought an ashtray.
Bernadette had
some concerns:
"I bought your finders fees program and I have a question
... A few months ago I bought another business program as a broker/liquidator.
After soul searching for a mission statement, I now need to establish
rapport with vendors (owners of the product). Now, since
I am operating on a shoe string (& hanging tough in this
economy), do I utilize the principles in your program as in stepping
aside for the buyers to consummate the deal ... or should I continue
the loop as the product needs to be shipped directly to the individual.
The dollars involved are small. My utmost concern is customer
service. Could you give me some advice on the best possible
solution? ... without compromising anything?"
Bernadette:
A "finder" is NOT a "broker." That
means the finder NEVER gets involved in the deal itself.
Therefore, customer service is not; and should never be, your
concern ... your client serves the customer; NOT you.
Here's a way I have made money; over & over & over,
as a finder ...
First, go around to the companies listed in your Telephone
Book Yellow Pages, under the classifications "Closeouts,"
"Surplus," or "Liquidations." -- I always
preferred those working from vast old warehouses; not store fronts.
-- Look around. See what they have. ASK them if they
pay "commissions" if you can find them a buyer for
some of their goods. (Do it just as I taught you in my
course.)
Then, just follow through ... get it in writing ... and start
finding the "buyers" and introducing them to the seller
you have the deal with. DO NOT, under any circumstances,
get involved in the deal ... stay out of the "loop"
... let the "seller" do the negotiating with the buyer;
shipping the product; getting paid for the product; and satisfying
the customer. -- ALL you ever do is make the introduction.
If you do it the way I taught you in my course, you have a
chance to pick up some good, solid fees.
Colin Hodge was interested -
but ...
"I'm seriously thinking of sending for your book "How
to make a fortune in Finder's Fees." The ad is certainly
an excellent piece of marketing. However, I have to point
out that the likes of Adnan Kashogi made their fortunes when
the internet was non-existent. Today, there are dozens of websites
which have removed so called middlemen, such as finders, from
the picture. -- Is your book geared to meet the challenges of
the internet, or is it based on the circumstances you were in
during the good old days?"
Colin:
Although the Internet looks all-encompassing, it really isn't.
Less than 20% of businesses are online and most of them only
use the Internet to display their product lines, or for intra-company
communication.
For a professional Finder the "methods" will never
change. -- It is a constant, pragmatic methodology that assures
that, when a deal is done, they get paid their fee. -- The amateurs
(who never get paid) go fast, faster & fastest on the Internet
- but - unless they have followed the slow pragmatic process
in conjunction with their speed, they just don't get paid.
You can learn more about Finder's Fees in my FREE report
at:
finders.html
Of course, you can use the Internet to "find" the
opportunities from which you can earn your fees. -- This contact
has put together a complete course on using the Internet to earn
Finder's Fees. As a matter of fact, his course tells you
where you can have immediate access to over 1,416,536+ potential
Finder's Fees!
Learn all about it, at:
http://21centuryfinder.8m.com
Paul Matthews wanted
to know:
"I want to export designer English handmade furniture
to the US. How do I get my best contacts?"
Paul:
First, we tell the e-Letter gang about it. (Just did;
didn't I?)
I suppose you would prefer selling the furniture in quantity
- rather than one piece at a time - so ... that means you need
to contact the people in the U.S. who will buy your furniture
to resell.
To do that, I recommend you get a "Directory of Periodical
Publishers" and look for the publications directed to the
"home furnishings" industry. -- Write to those publications
in the U.S. and ASK for their Advertising Rates. They will
usually respond with a copy of their publication.
Look through the publications to locate the "sellers"
of the kind of furniture you will be offering. -- Contact them
and make your offer. -- Remember: If they "sell"
what you're offering, they have to "buy" it somewhere
... why not from you??
Sam Jones wasn't sure, so
he asked:
"There is a company offering a mergers and acquisitions
business opportunity. -- You act as a FINDER you match businesses
for sale to buyers. -- They want $2,500 to $7,500 to work
with them. -- Don't you need a Real Estate license or some type
of license to operate this business? -- What is your advice on
this?"
Sam:
Personally, I wouldn't touch it with a 12 foot pole.
The Merger & Acquisition field is highly profitable -
but - these kind of offers are usually a scam. -
But ...
You can do the same thing yourself without paying the promoter's
fee. -- Just go through the various and many listings of businesses
for sale. Make notes of the kinds of businesses and some
basic notes about each business being offered. -- Then, contact
businesses in that industry of field of endeavor and see if you
can find someone interested in buying one of the businesses.
When you have found a possible buyer, send a letter to the
person selling the business and ASK them if they will pay you
a fee if you can introduce them to a buyer. -- If they agree
to pay your fee ... in writing, of course ... you simply introduce
them to the possible buyer and collect your fee if the sale is
made.
You'll have just as more success using this method than you
would paying the promoter big bucks to do the same thing.
And ... NO, you don't need a license to act as a "Finder"
unless you cross the line and begin acting as a "broker."
Then, you may well need a license.
Philip asked:
"I have started in the Online Casino Business. -- I sure
could use some expertise how to post ads. Where to post,
free ads, etc. --This business is growing in leaps and bounds.
They're doing billions every year. My problem is, I am
a newbie, no working capital or extremely limited capital to
post ads. However, I am determined to succeed. I thank
you for taking the time to read this."
Philip:
Unfortunately, I have NOT found any "free" advertising
on the Internet that works ... for anything. -- Beyond that,
I have found very, very little "paid" advertising on
the Internet that produces anything more than the cost of the
ads.
Suggestion ... make up some very simple "handbills"
about your Online Casino -- with the URL where a person can play.
Then, take those handbills to places where people play Bingo
and to the various "Games Arcades" (where they have
the electronic games).
Believe it or don't ... the best advertising for your "online"
deals are "off-line." -- Over 83% of my online orders
come from my off-line advertising.
Susan L. Miller wasn't really
looking at an opportunity:
"I always enjoy your email, especially the questions
and answers. Now I have one of my own. -- I have been getting
email from a certain well-known self-made millionaire touting
his free teleconference classes on making a fortune on tax liens.
-- He also has proclaimed the ease of making a fortune thru real
estate foreclosures. I did take one of these free classes, and
of course, they were actually selling a program. I am wondering
what your thoughts are on these opportunities? -- Thanks for
all your efforts to help the little guy and gal!"
Susan:
Yes, there is money to be made in buying & selling tax
liens and foreclosed real estate - BUT ... it is NOT a business;
it is an "investment opportunity." -- The same holds
true for "uncollected judgments" and "accounts
receivable."
People with money buy & sell tax liens, foreclosed property
deeds, uncollected judgments, and accounts receivable - but -
they usually DON'T do it as a business ... they do it as an investment
in order to increase their yield on their money.
The people who do go into the business of buying & selling
tax liens, foreclosed property deeds, uncollected judgments,
and accounts receivable are people with money; or investors,
who operate much like a "finance company." -- And,
because those opportunities are so difficult to find, they very
often offer to pay people to find those opportunities for them.
Those will be the sources you get from the guru - but, you can
find them yourself by reading the classified ads in the Wall
Street Journal, Barrons, and other financial publications.
What you are being offered is NOT a business; it is an investment
opportunity.
Sam wrote:
"I have a coupon business that I'm doing well with. --
I provide free coupons to stores to promote there business &
I then hire 2 high school kids to go to neighborhoods to sell
the coupon books. -- The problem is I want to get more stores
in different areas. -- Since this is a easy business to start
up, how do I hire a salesperson without training them to be my
competition?"
Sam:
Back in the 1960s I had a coupon business, too.
I overcame the problem of "sales people," by having
the local High School Band Members sell the advertising to the
stores in their area ... giving 50% of the gross to the band.
Then, I had the Band Members sell the coupon books and keep 50%
of those proceeds, too. -- Worked like a charm.
You could also do it with any other non-profit organization.
The advertisers will buy the ads to support the organization.
Then, the consumers will buy the coupons to support the organization,
too.
Well ... that's it for this month. -- In order to make every
issue responsive to YOUR needs, please send me your questions;
or tell me what sources or resources you need to build your business;
or give me any thoughts you want to share with your fellow members.
Believe it or don't ... I ain't a mind-reader. -- If'n you
doesn't tell me what you need, I may never touch upon the information,
sources or resources you need.
This is your publication for you to use to your benefit ...
I am just your moderator.
Until next month, keep well ...
J.F. (Jim) STRAW
e-Letter Gang Leader
Thought For The Month!
"Man's fear of ideas is probably the greatest dike holding
back human knowledge and happiness." -- Morris Leopold
Ernst
Can you stump the old master? --
Betcha can't!
Over the past 40 years (man and boy), I have made bundles
of money in direct selling, service contracting, wholesale merchandising,
entertainment (I was a professional Trumpet player, vocalist
& Radio Announcer), freight forwarding, import/export, retail
merchandising, warehousing, real estate, electronics manufacturing,
finder's fees, closeout merchandising, financial brokerage, business
consulting, steel fabrication, gold and coal mining, offshore
banking, mailorder, writing, and publishing. -- That being the
case ...
No matter what business you're in ... whether you're just
starting, well on your way, or at the top of the heap ... I've
probably been where you are, done what you are doing. -- So ...
Anytime you have a question about 'how' to do something in
your business - or - if you have any comments about anything
I've said in issues of this e-Letter; or if you want to add your
2 cents worth ... just "ask" me or "tell"
me.
Send your Questions, Comments or 2 Cents Worth
to ...
with "Question" - "Comment"
- or, "2 Cents Worth" in the SUBJECT.
If I, personally, don't have an answer to any question you
may ask, I will contact some of the professionals in your field
of endeavor (I will probably know one or more personally) to
get the real 'skinny' for you.
Note: If you want to ask a question anonymously
just tell me so when you send in the question. -- Nobody but
you and I will know who asked the question.
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Copyright - 2002, J.F. (Jim) Straw. All rights reserved.