Is Snappy Auctions a Great Franchise Opportunity?
April 20, 2007 by Sean Kelly
Filed under Business
While the largest, most celebrated eBay drop-off store franchise concept , iSold It, has closed 60 stores, suspended domestic franchise sales and warned it may be on the verge of collapse, its next-largest competitor remains upbeat and continues to promote its franchise program.
In a company press release, Snappy Auctions celebrates inclusion on the list that made iSold It famous:
Snappy Auctions has been listed in Entrepreneur Magazine’s Franchise 500 list for the first time… With over 63 units open, Snappy Auctions ranked 309th in the survey, in only its 2nd full year of operation. The Nashville, Tenn. based franchise enables customers to make money off of items that are sold on eBay…
Snappy Auctions CEO Debby Gordon claims that Snappy Auctions is not suffering the same fate as competitor iSold It. In fact, snappy Auctions is doing phenomenally:
“We are poised for a phenomenal 2007, after an incredible 2006,” Gordon continued, “and this accolade is just the beginning.” In 2006, Snappy Auctions launched Snappy Sales Solutions, S3, which has contributed to its recent success. “S3 is yet another step toward our goal of changing the way businesses get value from retired equipment and inventory.”
Snappy Auction also boasts having been named one of Franchise Business Review’s Franchise 50, which honors franchise systems based on outstanding franchisee satisfaction through owner surveys and comments.
According to a Ina Steiner’s column on AuctionBytes.com, “Despite the challenges, Snappy Auctions CEO Debbie Gordon believes in the concept and says it’s all about execution.”
Can Snappy Auctions really be succeeding while iSold It, with much the same business model, is fighting for survival? Have they successfully overcome the challenges that eBay drop-off store critics contend make the concept unworkable? What do you think?
YOU’RE INVITED TO LEAVE A COMMENT ON WHETHER YOU THINK SNAPPY AUCTIONS IS A GREAT FRANCHISE OPPORTUNITY.
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Back to my earlier point about Death. You wouldn’t spell the franchise names wrong on your website if you owned one, i.e. Quick Drop & I Soldit. Look up the names and try again.
My point is made on that, so I won’t bring it up again.
Wow, I’m impressed that you took that much time on the web site. You must REALLY be looking for any info to use for legal action.
What exactly is your reason for being on this forum, other than “interested”?? Do you own a store? It must be important for you to read my web site.
Oh well, I’ve talked to a number of potential franchisees and existing stores and they are all wiser for the experience. My point is made on that, so I won’t bring it up again.
All I had to do was look once. I’m waiting for your “dear diary” section to be updated, so excited.
It doesn’t quite matter why I’m here, I just have found it interesting that you started a website that’s already been done.
Again, wish you luck. Please let us know when you update it with interesting tidbits, other than a story that has been told a thousand times, unfortunately.
Who Cares Really?
For someone who doesn’t care, you sure seem obsessed with the http://www.DeathbyFranchise.com website. For someone who seems to have nothing to say, no original thought, you seem overly concerned with DBF’s website content.
Here’s an idea: Why don’t you start your own blog? You could share all of your stunning insights (a single page should do). You could call it Death by Daftness.
You know, what Who Cares Really is just R. renamed. I am glad they he/she is blogging here since it keeps this forum in the top 5 of Google searches.
Like R., Who Cares Really, has nothing to offer but snide comments. If Who Cares Really, did care, she (oops) would actually contribute something useful. A thousand more times this story will be told until all who can learn from the tale have heard it. Then, and only then, will it will be time to put it to rest.
The Dear Diary section would only provide you with more tidbits you could throw to the Snappy lawyers (I imagine they are being paid even though the stalwart Merrill was let go) for their purposes.
So throw us a friggin bone Who Cares Really. What do you stand for?
It still looks like Red Mill VA, Mt Pleasant SC, and Cartersville GA have zero itiems on eBay, but they’re still listed in the eBay web site. Plus 19 other stores have 20 items or less.
Who Cares Really, R., ORTBOFP, wantsomecheesewithurwhine, what do you have to say about that? Do you think it’s still just us real store owners complaining or is this beginning to sink in? Remember, you can’t change the laws of the universe. 2+2 still equals 4 and 30 items a week at avg $100 is still only about $12K a month in gross sales.
I know the guy at Redmill. He left a job that he makes very good money in or order to live the American dream and start a Snappy. The math didn’t add up, so he went back to his old job. So, it’s not so much that he wasn’t profitable, he just makes more money punching the clock.
I find it pathetic that you guys delight in the failure of these people. I guess it makes you feel good.
Joe M: I think you will find that these people do NOT “delight” in others failure, but instead are trying to get the truth out regarding the real issues of these franchises. These franchisors need to be held responsible for their actions (and the math that doesn’t add up), and they haven’t been. The sad fact is that these franchisees would make more money working for Walmart, and that is a far cry from prosperity or the American dream!
hey, HEY!! Hillary and I would like to remind you that Wal-Mart hails from my home state….
That aside, we were on a campaign trip recently and came across a closed Snappy Auctions store. The owner left a very touching letter taped to the now defunct businesses door. You could tell it came from the heart by the sad tone of the text. Hillary and I wish them well as they put this all behind them.
Ohhhhhh it’s RupertG! Good morning to all! I think what we need to really say, before completely bashing the corporate office (and this goes for any franchisee unhappy with the franchiser, I suppose), is that no one forced you to purchase the franchise. You had the choice, and made the decision to purchase the franchise. I assume you made that decision because you believed in the vision that the company had — nothing has changed, the vision is still there. The franchiser’s responsibility (IMHO) is to provide the means to make your business work — not run — and there is a difference. The franchiser provides the name, the upper-level support and the tools to manage your business — they are not there/here to RUN your business for you. The franchiser can make suggestions on how to run your business, and if you so choose, you can implement those suggestions — but in the end, it comes down to how YOU want to run YOUR business.
We are all magnets — like attracts like. And if you come out every day and are detirmined in regards to how negative your life is — then all you are doing is attracting more negativity toward your business. When you come into your store, you need to pretend that is Grand Opening day, every day is a new day. Be happy, smile and most of all be energetic! All these little things will not only make yourself be more confident about your business, customers more satisfied, but most importantly: when you are happy — your employees are happy and when your employees are happy then your customers are happy.
I’m sorry if you are an owner that had to close — it is sad. And I’m sorry that you were unable to make your business work. But don’t blame the franchiser for this — it’s not their fault — it’s not your fault — it is simply the way the industry is. No person or company can be blamed for this.
As Bobby McFerrin would say “Don’t Worry, Be Happy”.
Good Day!
“The franchiser’s responsibility (IMHO) is to provide the means to make your business work — not run — and there is a difference. The franchiser provides the name, the upper-level support and the tools to manage your business ”
None of which Snappy has done except provide a completely over priced name.
“We are all magnets — like attracts like. And if you come out every day and are detirmined in regards to how negative your life is — then all you are doing is attracting more negativity toward your business. When you come into your store, you need to pretend that is Grand Opening day, every day is a new day. Be happy, smile and most of all be energetic! All these little things will not only make yourself be more confident about your business, customers more satisfied, but most importantly: when you are happy — your employees are happy and when your employees are happy then your customers are happy.”
It doesn’t matter, if you’re not getting the traffic in the store, any amount of being “happy” isn’t going to make a business work. Sorry, this is the real world, not the touchy feel good make believe world that Snappy Auctions makes it out to be. You need a proven non-flawed concept AND customers; two things this business idea is lacking!
If you do get traffic into your store, it still does not matter, because the concept is completely flawed! That has already been established. Now, if commissions were, say double what they are, it might be possible to make some money.
Nashville can beat a dead horse all they want, it’s not going to get up and run.
OK. Let’s suppose Rupert buys a car. No one forced her to buy this car and the manufacturer says the car is safe. THey show her all the safety features and show her others who are driving the car safely.
Then, while obeying the law and driving according the manufacturer’s guidelines, the car loses a wheel, careens into a busload of orphans and kills them all. Rupert did what the manual said to do. She followed the manufacturers guidelines. She followed the law.
She did everything the manufacturer suggested, but the car was defective. According to Rupert’s logic, it’s her fault. So, hold Rupert accountable, not the manufacturer of the faulty car.
Rupert, what would you do?
And Joe Momma, what don’t you understand about giving stores the real story and showing them how to get out before they lose any more? I call this a helping hand. BTW, what have you done to help a suffering store?
“But don’t blame the franchiser for this — it’s not their fault — it’s not your fault — it is simply the way the industry is. No person or company can be blamed for this.”
Riiiiiight. You smoke and get cancer, it’s your fault. You sell drugs and get caught, it’s your fault. You sell a product without ensuring it’s efficacy and it fails, it’s your fault.
Post Modernism at it’s best! It’s societies fault. It’s not the franchisor’s fault?!?!?!
They said it would work, I can show you DOZENS of examples where they said it would work and they said they had proven examples.
If you represent a product as tested and proven and then it fails the majority of the time, IT’S YOUR FAULT!!!! Get some backbone and call it what it is. No more of this “I’m OK, you’re OK” crap. Act like a responsible adult……if you are one.
Rupert, I can see you have been watching the infamous DVD or reading the “great” book THE SECRET (the otherwise rewritten “The Power of Positve Thinking”from thirty years ago). Get a life man, try realism!
As for choices, there are NONE after the contract is signed, especially if the contract has been grossly misrepresented! You are really out of touch (and not too bright)!
The VISION you speak of with these companies has changed every few months and STILL doesn’t work! You need glasses too!
Get Real, Tim, and Been There, it is best to leave some people alone on there fictious planets. THEY WILL NEVER GET IT!
I talked to a friend who was in Nashville on a business trip and who had meetings in the same building as Snappy Auctions. He walked by their office and said he didn’t see a human being in the place. No receptionist and no activity. They must be hunkering down in the back.
The newest numbers look a little better, but that’s only due to people wanting to sell stuff for Christmas money. Last year’s numbers showed a slight increase Oct-Nov, then they tanked big time again in Jan.
Stores, don’t let this short term increase fool you. It won’t be enough to carry you through Jan-Feb. I predict a temporary slow down in store closures until 2008 when they will peak again.
Oh hallelujah! Rupert G read “The road less travelled” or another service-station/airport book rack bought, corporate self-harm manual and is now some born-again positive thinker!…..like yeh…keep smiling and in the end you’ll be a smile – the smile between the cheeks of an arse-hole!
I’ve been getting emails from Snappy owners, ex-owners and ex-employees and the overall feeling is glum. I did have some store owners say that they were making money but would probably close anyway since they could make more money in a regular job. Another said they thought the attrition would increase in the next few months and that they would be in the batch that would be closing down.
I was able to point them to AITOO and hope they will be able to learn from them and leverage what the rest of us have learned.
Still no word from Snappy HQ and if Number Cruncher’s friend was right, I am concerned that stores that want to stay open will not be able to if they lose their support from Snappy.
We need to get the word out to these stores that they can stay open, if they still choose to, and there are good software packages out there that are well supported.
Any ideas on how to get the word to them?
You have a website, correct?
Go at it great communicator.
The operative word was “to” them, as get the word “to” them.
Maybe you don’t understand the difference between push and pull communications.
Considering owners are reading your website, you are doing both.
Nope. Try again. Look it up.
I’m not arguing marketing semantics with you, if you post it they will look. Apparently you are getting all kinds of traffic now, so posting relevant information may bring more people and your mission may be served.
Who Cares Really?
Well even I gotta say something about this. PUSH means they didn’t ask for it. Spam is push.
DUH!!!!
So any of you losers have anything new to say
Let’s do some number crunching again:
Remember:
1 Japanese yen = 0.008715 U.S. dollars
Bidding activity: Almost nonexistent
See for yourselves:
In Japanese:
http://storeuser16.auctions.yahoo.co.jp/jp/user/snappyjapan?alocale=0jp&mode=2&apg=1
Translated to English:
http://www.google.com/translate?u=http%3A%2F%2Fstoreuser16.auctions.yahoo.co.jp%2Fjp%2Fuser%2Fsnappyjapan%3Falocale%3D0jp%26mode%3D2%26apg%3D1&langpair=ja%7Cen&hl=en&ie=UTF8
RupertG, ORTBOFP, Who Cares Really, Snappy Auctions HQ… Got milk?
Since I gathered numbers last year whilst I still was a Snapper, I did some comp stores sales analysis and this year’s numbers are far below last years. This only includes stores that were open last year at this time for at least 6 months and are still open (according the Snappy HQ web site). While the number is dwindling, the comp numbers are dismal.
Anyone heard anything from Snappy HQ. They seem to be keeping pretty quiet.
Anyone hear anything about Snappy declaring bankruptcy?
UnSnapped 2, you just pulled that out of your a$$.
Hillary and I have been hearing rumblings. Oops that’s just my stomach. But we did hear something about some legal goings on with Snappy HQ.
Well back to the campaign trail and all those new interns. Yeeeeee haw!
UnSnapped 2 you are not the only one that has been hearing those rumors.
Me thinks Who Cares Really? works for Snappy and has been kept in the dark.
Polish up that resume.
It’s just pretty obvious that the comment has no actual facts behind it.
Oh…NOW you want to talk about facts. Funny, when did facts ever bother you before?
Also, I didn’t see any disclaimer on working for Snappy.
Who Cares, Unsnapped 2 and the others are just fishing like you have been! Difference is that they have real facts and REALLY DO CARE!
As for numbers, AmITheOnlyOne took stats on ALL the franchised drop off stores for the top 4 selling weeks of last year, and will do it again for the few stores that remain this year. You can bet on the numbers being lower. The average store sold $23,000 gross in four weeks last year (and that will NOT pay the bills). I am sure they will post the numbers this year around xmas. So get your resumes ready as Been There stated!
I veel my servizes are in need again, zo here I am and I vill do zees at no charch.
Who Cares Really? does really care and eez hidink behind a veil of self deluzion. Zeez perzon ees actually one of zee last Schnappy employees and cannot aczept zee fact that, how do you zay in America, it hass hit zee fan.
Zeez person feelz zome loyalty to a zinking ship undt cannot zee the huge wave coming to blow her overboard.
Zeez person needs a zwift kick in the fanny and a bootload of reality. Zey are liffing in vat we call “la la land”.
Zo, Who Cares Really?, yu neet to vake up and smell the pumpernickle. Get out vile you still can. Take control of yur destiny. In oozzer vords, RUN AWAY!
Hey all you ex-Snappers out there. Hillary and I have a great idea for your pair of ex-Snappy, purple store counters, the ones with the stainless or aluminum tops, the ones you can’t sell along with all the other Snappy stuff. Take the countertops off, bolt the two cabinets together, side by side, then be creative with some oak veneer paneling and mouldings from your local home improvement store to make it look like a bar. Go wild and accesorize from ‘Renovators Supply’ (lotso bar related items). Stain it to suit, bolt/screw the metal countertops on, now butted and voila, you have a trendy metal topped bar, the likes of which even Martha Stewart and Christopher Lowell would wrangle over to be a part of their shows. Who would have thought that the whizz-kids in Nashville would end up providing you with some real (Southern) comfort afterall!
Bill, that is one VERY expensive bar!!!
Thanks Bill,
But every time I look at those black boxes in my basement and think how they cost me about $100 grand, I just get sick and can’t even think about have a drink on them, with them or near them.
Or, maybe I should start drinking….
After several tries to sell mine, I put them in the garage and they are now my workbench. They would have been cheaper if I made them of platinum and never opened a Snappy store.
Anyone want a box of Snappy shopping bags?
Arrrrrrrgh!
Any clarification on the status of Snappy? Maybe we should beef up our efforts to show stores how to handle business without Snappy. It seems inevitable that they will close. I fear Snappy will keep as low a profile as legally possible since this will be a major blow to their ego and the stores will be left holding the bag.
Lone Texan – no offence meant, but you shouldn’t joke about the alcohol, it’s probably the route some have taken, and it’s no joke for those around a drunk. See Patrick’s posts on
http://www.franchisepick.com/will-auctioning4u-save-the-ebay-drop-off-franchise/
you may get the same feeling I did. although as Sean has closed down comments on that page, we’ll never know if ‘Patrick’ was just having a few bad nights, or already half-way down a very rocky road?
…I wasn’t joking….
Last year at this time, the stores I talked to, had pretty decent months. This year the same stores are doing 12-20 items a week. Even if hey averaged $200 per item, that would still not be enough to pay the bills.
My guess is that they will stay open until after Christmas, then reality will sink in.
Why all the sad faces? Snappy not going down in flames the way you wanted? Where’s the lawsuit. Where’s the high body count? Wah wah wah wah
Ha ha ha. Ha. Ha. Now that’s funny. An owner mocking other owners. Ha. Funny stuff.
Who Cares Really? you are a nimrod, cause I’m not an owner and you’re a Snappy employee. Even more reason you’re an nimrod. Go cry to mommy. Wah wah wah
Nimrod. Wow, now you’re slinging insults. That’s impressive. Great English too.
ORTBOFP, give up trying to get Who Cares to engage. She’s happy to just sit there and act smug. That’s what people with nothing to say do naturally. Just ask Hillary.
I just talked to 2 more stores who are closing. The writers of this forum, who care about helping them are doing so. The others will just sit and do nothing. You know who you are.
I feel a storm comin on. Yes, I storm a comin on. People get ready.