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WHAT ARE THE EXPENSES? / HOW DOES THE MONEY WORK?
Ø A common question about the program is in regard to expenses. How much does it cost to get started?
Very little. There is minimal investment required by the student dealer to get their business off and running. For starters, their sales kit (valued at over $350) is provided to them by Southwestern. Their lodging during Sales School will be at a local hotel in close proximity to our headquarters in Nashville, TN. The expense of this stay is subsidized by Southwestern. The student will pay only $100 for a week’s stay.
The studentswill need to cover their own travel expenses to Nashville and their summer locality and food during this time. It is recommended they bring $500 or more with en to cover these expenses (maybe more depending on the cost of fuel). They are responsible for all of their expenses over the summer.
There is no cost associated with the training (estimated to be a $2,000 value).
When the student arrives at their sales locality, they will apply for a solicitation permit if required and open a local bank account.
How the Money works:
When the students make a sale, they take a deposit on the order, typically 50%. Some customers pay in full, and some may pay less. It is up to the student and the consumer as to how much they collect. Since the product is delivered at the end of the summer, some customers are much more comfortable not paying in full while others may pay up-front.
The student will accept cash, check or credit card. They deposit the money collected into their local bank account. At the end of the week, they keep what they need for living expenses and remit the rest to their Southwestern account.
Important:
1) The students do not purchase the product up front. This program was set up after the Civil War as an opportunity to help students earn money for school. They show a sample of the product and take orders. They are shipped the products at the end of the summer when they deliver it to the customers themselves.
2) No inventory. The students do not store inventory. It is shipped to them for personal delivery.
3) Buy back. The students are not stuck with any unsold product. As long as it is in good condition, it will be credited back to them at full value upon return.
When the student delivers the products, they collect the remaining balance. Upon completion of deliveries, they close their local bank account, get a money order or cashiers check for money from the summer and deliveries and return to Nashville to reconcile their Southwestern account.
The net profit they make is the difference between the retail price they sold the product for and the wholesale price they purchased the product for minus expenses. Credit balances on their account are provided to them in the form of a check.
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