Businesses people hate, but that make money for the owners?

[8 Bit WWBG]

I didn't want to hijack the other thread; but in every "school fundraiser" thread, several people point out that the merchandise is overpriced junk and the majority of the money goes to the company.  So that gets me thinking.

1) I should REALLY start one of these companies.  Though I'm not sure if they are like the mafia in that they will protect their turf.  (Quick aside: a friend looked into buying a parking business, and decided to leave it be after he was contacted by... "competition").

2) Is it possible to run one of these businesses WITHOUT it being a sham?  Like, sell something people want at a fair price, and make sure a good amount of money goes to the schools?  I'd think that would alleviate some of the rage parents feel.

It certainly gets me thinking: I'm sure the owners know that people hate dealing with their businesses, but the big checks keep coming in.

[milee]

Payday loan companies and strip clubs come to mind as two businesses that make a fair amount of income and that people dislike but pay for anyway.  Morally, I do not have an issue with a strip club, but wouldn't want to own one because you have to pretty much be there all the time - even to 3 in the morning - or you are robbed blind and the employees are dealing drugs and turning tricks in your business.  No, thanks.  As for the payday loans, the hours aren't bad but morally, I couldn't do it.

WWBG, the school fundraising business is all about the marketing.  If you have the time and personality to constantly push it like a used car salesman, you could probably make a go of it.  IMHO, it's high effort for low return, though.

[alabamagal]

I think about 1/2 the population likes strip clubs

[8 Bit WWBG]

Is it really low return?  I'd assume there is a lot of schmoozing with the schools or clubs/organizations in order to cement your company as the official provider.  And of course it certainly comes down to how cheaply you can get the merchandise.

[Deleted]

I think you could do okay if you sold something people actually like for a decent price.

One of the fundraisers that hit my office was Blue and Gold.  Blue and Gold is an Oklahoma company that sells sausage, breaded chicken, and thick sliced bacon only through fundraising groups.  That fundraiser was very popular, because OK is a land of meat lovers.  The price was okay too, cheaper than Whole Foods.  I wasn't familiar with it, but my coworker said it was really good, so I snagged a selection, more than when I'm choosing between a scented candle or an onion keeper.  The page actually got totally filled out, and the girl brought another sheet for more orders.

Probably try to make sure the product is actually decent though.  I got a bucket of cookie dough from another fundraiser, and that stuff was disgusting.  Seriously, how do you screw up cookie dough?  It's fat, sugar and salt.  The paste should melt my brain from joy, not make me wince.    If that one had come again, I would've broken my stance of getting a bit from each fundraiser, and totally shunned it.  The product was garbage.

[constanz22]

Rent A Center type places!  Charge low income people with no credit $50/wk for something that costs $500 to buy outright, but they can't.  Then when they stop paying, you go pick it up and rent it back to another low income person who can't afford it!  Genius!

The other one I'd love to do, if I had some extra land is self-storage!  What a great money maker.  Most people will pay $75/mo or more to store crap they forget they have and will pay it for years and years on end!

[milee]

Oct 18, 2013 17:26:33 GMT -5 8 Bit WWBG said:

Is it really low return?  I'd assume there is a lot of schmoozing with the schools or clubs/organizations in order to cement your company as the official provider.  And of course it certainly comes down to how cheaply you can get the merchandise.

If you can get a national setup where you're ordering in bulk for pricing, it's probably medium level return.  On a small scale, the returns would suck.  Also, I think you'd be surprised at the level and amount of advertising and schmoozing you'd need to do.  Plus, there's PTA turnover almost every year, so the level of repeat orders isn't fantastic.  It's like selling to a new client every year.  A client that doesn't have much money and where there are several dozen people involved with making every decision.  Yuck.

[Deleted]

 Since I am a teacher, I see all the fund raisers.

What people don't like is junk.  They also don't like the stuff they bought last year like wrapping paper.  People also get tired of the stuff every other school is selling like coupon books and cookie dough.  Most parents have multiple kids in multiple schools.  We just offer a "fundraising donation," and a lot of parents prefer that.  Those who don't usually don't participate anyway unless it is mandatory.

There have been some better fundraisers that I am willing to participate in.  The soccer team sells Boston butts around holidays like Labor Day, etc.  The math team sells premium fruit.  At least, I sort of want this stuff.  There is also school-specific stuff that sells well.  They sold doormats with the school's name/emblem on it.  That was cute.  I didn't buy it because I try to limit my buying to my own grandkids, but I was really tempted.

However, you do have to do a payback to the school.  We've had luncheons during Professional Development Days catered by the ring people.  Ditto the yearbook people.  Ditto the school picture people.  They have to do a payback because they earn so much money from all the schools.  The bigger the school, the bigger the payback but the more you earn.

[raeoflyte]

Band Turkeys!

[Deleted]

Force-placed insurance (the type your car loan/mortgage company buys if you don't keep your own homeowners/auto physical damage coverage paid up).

The types of coverage they try to add in when you take out a car loan such as disability or unemployment.

Extended warrantees.

Subprime auto loans.

Pretty much anything that preys on the poor and desperate.

[Knee Deep in Water Chloe]

Dentists 

[haapai]

Undertakers.