Posted at October 19, 2005, 10:55 am:
The article today about iSoldIt, a leading national eBay drop-off chain, announced its year-to-date 2005 gross sales exceeded $20 million. Interesting. I wonder how they are doing...really doing? 140 stores doing $150,000 in sales would put them at $21,000,000 for the year. $150K is not very much and tens of thousands of ebay sellers do more than that out of their house. After the franchise fees per sale (not to mention the huge startup fees), paying overhead, paying employees, paying ebay, paying the customer, advertising...there is not much left. No one ever talks about profitability. Even the commercials on TV offering an eBay Selling program by Dave Whatever, they always state "This guy made $6000 a month in sales" or "This lady made "20,000 a month in sales". OK fine...but how much did you make? PROFIT, please. It reminds me of Peg Bundy in the TV Show Married With Children...she became a cosmetic salesperson from home and she bought all her own cosmetics, so she would make commission. Al had to pay.
One thing I have learned is to be wary of press releases. Most are camouflaged advertisements. You will find little press about AuctionDrop as they have all but fallen of the map. They were never able to make the concept profitable. I am pretty sure none of the QuikDrop founders were ever powersellers. Instead the were franchise experts. iSoldIT bring the Wetzel Pretzel franchise power and money to sell their franchises.
If these franchises are making money then it must not be much, and that is alot of work for that low of a sales number. If the franchises are not profitable, how long can they last before it all implodes? If they are not profitable, how long can these franchises continue to be sold to inexperienced sellers (any good ebay seller would not need a franchisor), before they start claiming they were sold something that did not exist. Time will tell.
Original of the message was taken from http://www.auctionbytes.com/forum/phpBB/
Replies:I just kind of shook my head in disbelief when I read what that one pe...
The meaning behind my Peg Bundy analogy was.
Personally I think they are "in the buff".
You also need a certain amount of willingness to learn about the produ...
My business partner at ShipOnSite and I sat down and looked at the num...
So then, let's just say you needed $55K in sales per store per month t...
-+Agreed.
When operating on a commission basis and knowing that WELL researched ...
Ina just had this article on quikdrop.
Here is another company Ina mentioned this morning in her auction roun...
-+Henderson hopes to earn revenue of $150,000 to $200,000 a month, and o...
I completely stopped selling on eBay a while ago, at first it was wort...
In the latest Entrepreneur magazine, I read one consignment shop is se...
Once again we are seeing our opinions of the viability of drop off sto...
Dropped by the QuickDrop franchise store in the middle of the day in R...
Yeah, I don't think retail idea is really workable.
..OR somehow devolving this back into a home-based business. If your h...
We have 2 ebay dropoff stores in our area.
I drove by the QuikDrop store in Rancho Mirage (Palm Springs).
Part of the problem is that it is simply not that hard to sell somethi...
I think there's another factor I haven't seen mentioned yet.
I bought an item from a UK consigment seller and I am sure because of ...
Once again we have proof that the ebay marketplace is not as profitabl...
For over 10 years I was a bankruptcy buyer/seller one of North America...
-+ouch.
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I have noticed a new place opening up very close to my store and it is...
I still can't understand why anyone in their right mind would buy into...
i was over at the area where this new store is opening, it is indeed a...
If you go to the iSoldit website and send away for a packet they'll se...
For more information on owning one of these franchises goto
www.
Great site, AmITheOnlyOne
Definitely worth checking out if anyone...
Hi,
This is my first post here
I'm living in London, England...
The discussion continues and it is not looking good.
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