The idea seemed simple. Purchase earrings at $2 per pair, then place the displays in stores at no cost to the owner, sell the earrings at $9.95, pay the owner 30% and keep the rest ($4.95).
This company claims their earrings are high quality, that you could make $30,000 per year or more, and that if you don't make your total investment back in one year, they will refund the difference. My total investment was $12,150: $9950 for Mark 5 and $2200 for a locator. Keep in mind that Mark 5 charged me $9950: $5800 for 2100 pair of earrings and 31 displays and $4150 for their "fee".
I purchased this "business" on or around October 1. My total profit is $2930.35 as of 10/1/06. My goal for the year was $12,000 which is less than half of their minimum possible annual profit.
I hired the locator they suggested, which cost me $2200, and he went to 65 businesses in my town and surrounding towns and only placed 22 of my displays. Therefore, all the businesses who said No are now burned and I have now had to go out to a 50 mile radius to place these displays and have actually run out of businesses. I have 26 displays currently placed and businesses are dropping me b/c the earrings don't sell.
I was promised high quality earrings that would sell for $9.95. Women constantly tell me they wouldn't pay more than $2.00 for most of the earrings. Every time I order 8 dozen, I receive about 2 dozen that won't sell and/or are damaged. Mark 5 allows me to exchange 8 dozen each month (as long as I purchase 8 dozen). Every time I exchange 8 dozen, at least 2 dozen are damaged, won't sell or are exactly what I sent back.
I have contacted the president of Mark 5, Bob King, on numerous occasions to correct these issues. Nothing has happened. I cannot afford to lose $12,150.
Apparently, Mark 5 doesn't care if I succeed or not, b/c they already have my money. My reorders have cost $1368. That brings my total to $13,518. My current out-of-pocket: $13,518 - $2930.35 = $10,587.65. With interest and other costs, my out-of-pocket comes to about $12,000. I believe I am entitled to a refund b/c Mark 5 has NOT met it's expectations.
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