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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Ok, I goofed up and I almost gave my actual ranking away which I was attempting not to do. but I looked up quickdrop and they don’t even rank and auctiondrop ranks at 826,000. Now when I was looking up theirs I noticed my paste was incorrect…for some reason when I post after I copy from alexa cell it adds and extra number…which I was going to point out to you but now I just figure out that if I tell you the correct number you will then be able to figure out my website. I almost goofed…you guys are good. I will tell you since it is there that I rank at 4 million plus which I thought was bad…but I just check that phone company that I invested in and they current rank at 9 million….and they have wasted hundreds of millions of dollars…including the money I lost on that stock so now I don’t feel as bad. Does anyone know how far it goes up before they don’t rank you?
Ok…quikdrop ranks 1,097,881. I guess I really do suck for a small store with a few employees.
Ok…last remark tonight since now I am depressed…you guys have crushed my spirit. Just kidding…I found this to hold onto…
Just don’t get too hung up on Alexa as a measure of how well your business is doing. The real statistics that you should be watching are actual traffic numbers, conversion rates (ie. how many visitors actually buy something) and overall sales. These are the figures that will help you put cash in the bank and improve and grow your business.
John:
There are people on the sidelines who don’t contribute to this blog because they are not store owners, franchisers, or franchisees. They work behind the scenes. It’s time to cut you down to size.
Email me: [Email address withheld for verification]
or the kang aroo will come out of its box sooner than you think.
~The Revelator~
John: Hillary and I think you should be a politician – you could talk a bone out of a dog’s mouth by not really saying anything. Time for you to Cowboy Up on this web site, don’t you think…?
-Billary
When you your site is doing better than eBay, all we have to go on is web site rankings. Now you say there are other metrics involved in your “ranking”. Also, your english suddenly got better. Billary is right. You sling it good, kinda like a former “John” at Snappy who always had a “better idea”.
I say we vote John off the island.
If John does not make a convincing argument as to why to he is withholding his identity from this blog, I will reveal it tonight.
~The Revelator~
“It’s time to cut you down to size.
Email me: [Email address withheld for verification]
or the kang aroo will come out of its box sooner than you think. ~The Revelator~”
I am confused on the email part? Anyways if you figured out my website please do not reveal it since I would not want any of the franchises to pick up my ideas as they would only use them to rip of more store owners.
Bill: My grammar improved…damn…that is the best pat on the back I have had in a long time. Thanks…maybe I was just lucky because I have serious problems with “ed” and “s”. Oh maybe you were referring to the quote I did from some other website…that has to be it. I posted it since I felt like crap knowing my website ranks so far down the list (4 million plus) but I did find out since I was hooked on that alexa site for a few hours that according to some other website they keep tabs on the first 10 million. So, I am half way there…but then again isoldit was like 800,000 and quikdrop was a little over a million so I still suck I guess.
Lousy tshirt: you really need to reread my statement as I meant for the keywords (my companies name/website) and that eBay comes in second. I would hope so because if you type in you name and eBay beats you and it is your companies name…then you have something to work on. I would assume they come up because of our 300 +- auctions we have up. I have never been involved with any franchise since I was lucky enough to learn that snappy, quikdrop and Isoldit were there just to take your money and rip you off.
Bill Clintion…I was not talking my way out of anything because I type the truth…maybe not the whole truth since I don’t really want the franchises to figure who I am because I want to help individuals stores succeed not the franchises. I do what I do because I enjoy it….not because I have to. I could go back to the corporate word and act like a computer manager again…but I really do dislike ceo’s and presidents as they are all crooks and thiefs in the end. Like I said before…I really don’t see anyone here except maybe the enemy (franchises) or people who have already been rip off by the franchises.
Chance: Do you still own and run a current drop off store? Does anyone? Have a great night.
Well John, You’ve given us just about enough info to confuse and tantalize, but nothing substantive, so as far as I’m concerned, you’re blowin smoke up my b___.
If you’re been reading the first 5-600 posts, you would know most of us are ex-owners since there aren’t many left.
As for your mystery machine, I’ve heard it all before, but no one ever comes up with anything solid. Just more blah blah blah…..zzzzzzzzzzzz.
Been there – I’m getting pretty good at smelling out these corporate stooges, and there’s no smell on him. Like the rest of us did once, he’s in the still believing phase, and he’s tied himself in knots trying to explain his ‘concept’ without giving anything away…fair enough, I’d have told you nothing that wasn’t cleared through CB a couple of years ago. And look at all the cryptic crap issued by Auctioning4u, or on Trevors blogs,
‘yeah, we’ve got a new centralised model’
‘Really, how does it work?’
‘Well it’s centralised’
‘But what makes it different from the others, where are the figures?’
‘Well we can’t give figures, but it’s a centralised model that will revolutionise e-selling’
Blah blah. I lost count on how many times Sean tried to get a strait answer out of Christian!!
Revelator – Unless you can guarantee the guy is ex-corporate, and I mean name, address and shoe size, best you leave him be for now, we don’t want this to become an unnecessarily vindictive sight.
I may have said harsh things about CB over on the A4U pages, but he was saying them back, and most of what I prophesied has come true, I even told his backers that within a year or so he’d concentrate on toys, not that I’m a prophet, just that he’s a very transparent bullshitter! [hay - spell check corrects bullshitter (two t's)!!]
But John has not as yet done anything other than try to tell us what he claims he’s up to without giving anything away, or anything he thinks another bigger concern might be able to run with???
Let’s see what happens huh?
John: the system withheld the email address. You can reach me at [email address withheld]*
~The Revelator~
* Ed. note we don’t post personal contact information publicly. You can mutually exchange info by both emailing permission at info[at]ideafarm.net
Hugh: I do not believe he is corporate. He looks legitimate. I have tracked him down. I need to find out what his motives are before I publish the names of the sites he is involved with.
~The Revelator~
Revelator: I am sorry I cannot email you yet since my email has my domain and I was already freaking before thinking you were going to post my domains. Like I said, I am not ready yet and you guys are like hound dogs and I am running for my life. Lucky for me the main thing is not on my site yet but some stuff is that I make money off the franchise people don’t do yet. So for now I will leave since my tips are useless and my ranking on alexa sucks I guess. I see that all you are going to give me is a rowboat to get off this island with and I guess that is ok. I just purchased adobe cs3 web premium thinking they would have the bugs out by now. Anyways I will state again…all ebay type franchises suck. That would include isoldit, snappy and quikdrop. I did not fall for their BS because all they want is your money and in reality anyone can open a eBay store without them. I spend no money on advertising….none….I do not recommend opening a eBay store because I am not encouraging anyone to attempt this feat. Maybe when I come back to visit the island…there will be some individuals who did not lose a lot and hopefully are suceeding. I would hope you would incourage all current franchisee to get out of their contract and go it alone.
Johns thanks for all the information, but I really don’t see how any of it helps me. Maybe once you are ready to share your secrets, I can determine if it will help me keep my store open.
Does anyone have an update on what’s going on with Snappy? I’ve given up on them doing anything useful.
Just took a look at sa’s items for sale and saw a company called comcycle is using snappy’s sw and they are also hosting their pictures.
When did sa start selling their sw to others than franchisees? I’d be po’d if I were still a franchisee.
Interesting press release from the parent company of Com-Cycle.
FLANDERS, N.J. Oct. 22, 2007 — AERC now has the ability to automatically inventory, track and sell
End-of- Life Assets through its new software based technology solution powered by S3 Software. This
solution will allow AERC to evaluate and manage all assets based on the appropriate disposition of the
asset. Methods of managing End-of-Life Assets are resale, redeployment, recycling, donating,
disposition, or returning the assets to the client after data sanitization has been performed.
About S3 Consulting
S3 Consulting developed the S3 investment recovery and asset management system, which combines
business processes and proprietary web-based software to help companies manage retired and end of life
assets while maximizing resale revenue, ultimately reducing the total cost of ownership of assets.
Guess they don’t want to be know as Snappy Sales Solutions anymore…S3 consulting, humm, guess their branching out. That’s a little scarry!!
They have been doing that for a while now; some franchisees probably knew about it, others likely not.
They wouldn’t make a big announcement to the zees as it doesn’t effect them at all. It only takes up more of Corporate’s time, and all the royalties are just feeding the machine to move on down the road without the original asset, the owners.
They are marketing the only asset they have to stay alive, and unfortunately are leaving the franchisees beyond.
Ego has probably decided that she’s done with franchising, how long until she bails?
One would think she’ll go the Quik Drop route as to not screw all these owners. Although one could argue…she already has.
So do you think S3 Software can manage the sale of some ebay drop off stores?! LOL
I guess that’s why we haven’t been getting support. Also, I know S3 stole this idea from a franchisor, because that person told me about this well over a year and a half ago and wanted me to get in with them. You need to realize this is not the Snappy eBay software, but a new kind of software that several store owners started to develop on their own and weren’t able to finish since the stores sapped all their money. So you see, Snappy took valuable resources away from the stores to develop this software.
Also, I know the stores weren’t invited to participate in this. Just another example of DG and her super ego: “screw the stores, I need to get my name out there and show I’m not a failure.”
Well, we have finally reached the level, “Pathetic”.
So it seems that on SA’s main website, when you search for live auctions (in general as a whole) instead of “snappy auctions”, it searches for “SAF2ALL”.
That brings up not only SA Auctions but anyone using their SW…why? Because embedded in the text of the shipping explanation is a shipper code “SAF2ALL”.
What that tells me is that they are treating these third party folks like franchisees. And, if I had to bet these third party companies that are using the SW are just paying royalties like the owners are. Or maybe a flat fee, who knows.
Ah, wouldn’t it be nice to pay a flat fee per month to only use the SW and not have to pay royalties for something that is not being provided?
Like a franchise network that now includes companies who aren’t franchisees? Just SW customers? They are out selling SW to companies and not really supporting their zees, just taking royalties and adapting their SW for life beyond the zees.
Officially this state has turned to “Sad”.
Since Snappy central is down to 3 people and one of those is the el presidente con ego mucho grande, I wonder who is minding the store?
BTW, has anyone done a Google search of S3 Consulting or S3 Software? Strange, but I cannot find any mention of it other than in the article listed above. There are other S3 Software companies, but they’re not the same software mentioned above. How do you know S3 Software has anything to do with DG? Normally she would call all of her press buddies to announce another fail-proof concept.
Snappy has been working on something like this for Vanderbilt university, but it has fizzled pretty much. They sold a few high dollar items, but mostly it’s the same flawed model. If they haven’t been able to make it work by now, it’s never going to work.
Can someone provide a URL to tie S3 Consulting back to DG or Snappy? I can’t seem to find one.
There is none. We know it’s SA because the pictures are being hosted @ SA and the template and so forth…the press release is something that ties it all together.
They are likely working on branding the S3 Consulting through Snappy Sales or something of the sort. There is no website that I could find.
They are no officially a software company that has some franchisees.
Also if you look at the Comcycle auctions, the logo inside the template has the invisible text “Snappy Auctions” above it. Highlight and you shall find. Shady.
What is the seller account on eBay for the Snappy/Comcycle items? We can only hope this is all under Snappy Sales LLC so they have more money in the hopper for any legal action.
Also, what account are they selling the Vanderbilt sales under?
One can only hope they are VERY successful for this….more money for the ex-store owners.
Ya know, I kinda think no one from Snappy HQ is monitoring this forum anymore. How would they have time. 3 people trying to stem the downward spiral and with DG working on other projects since she’s blown off the stores. We’ve done a good job getting the word out and Snappy HQ knows better than to threaten us anymore.
Our job continues to be to educate, assist and communicate the truth about eBay Drop off stores.
Anyone out there still getting updates from Snappy? Do they still have weekly calls? What are they touting as the “latest and greatest” of ideas to stop the bleeding?
Public records are great!
Snappy Auctions is organized under the following.
Snappy Auctions of Nashville L.L.C. 0473089
Snappy Int’l L.L.C. 0493922
Snappy IP L.L.C. 0493924
Snappy Sales L.L.C. 0467462
Snappy Japan INC 0493922
A few dollars to the state of Tennessee and answers to mysteries can be found.
As a New Year beckons bright with possibilities and potential, I would like to salute all of the Snappy owners and wish them a happy and prosperous New Year. It is always good to reflect on the past year and plane for this coming year at this time. While John’s words sound sweet and they bring hope, the details as always seem to be difficult to gather and capture (if they exist at all).
Oh well, time for reality. Looking back on the past year we emerge with one unalterable fact: The eBay drop off store concept does not work, and SA’s purportedly successful, proven, turnkey offering does not work either.
On the comment section of this blog each store failure is taken in isolation. The true impact is not seen until the situation is viewed in its totality. Not only does this concept fail at the store level is has failed in many cases at the state level, and at the regional level. If the Empire State, the Golden State, the Show-me State, the Badger State, the Tar Heel State, the Palmetto State, and many others, can not provide a nurturing home for this concept, where can it succeed?
And now without further ado, the results for SA from the last quarter *.
* does not include eBay motors (quarterly volume too low to worry about for SA), stores converted to selling cell phones, or the 5 Comcycle stores.
IPS= items per store TI= total items
OCT 07 IPS Nov 07 IPS Dec07 IPS
37,187 318 43,074 304 53,863 419
46,756 258 31,147 263 34,354 232
8,408 343 38,614 924
15,950 161 12,499 117 17,191 132
3,492 54 2,317 74 3,267 68
2,577 28 825 9 852 18
18,894 366 32,919 317 14,749 310
13,532 220 10,225 396 11,231 329
12,855 62 15,690 74 25,416 125
3,339 40 3,047 83 4,713 95
8,663 79 8,107 98 4,224 81
10,982 250 5,791 186 16,316 262
16,457 147 11,942 163 10,275 156
12,668 178 11,967 146 6,941 110
8,296 72 5,758 51 3,532 59
6,674 39 6,674 40
12,799 222 10,078 264 9,959 676
8,853 187 6,751 188 10,115 123
10,016 89 5,032 44 8,517 67
2,948 33 2,948 33
8,010 24 3,457 33 4,750 28
31,576 379 24,784 258 52,515 219
14,363 378 9,470 321 17,509 185
6,174 80 2,716 43 7,832 9
22,899 228 16,569 314 26,294 285
16,887 130 29,868 194 24,191 231
800 22 1,209 25 6,135 23
18,945 81 14,188 71 4,278 95
15,931 164 26,043 165 25,667 138
9,414 171 25,961 274 8,988 156
26,838 344 35,889 424 42,182 443
13,731 297 21,220 336 11,351 261
8,210 241 8,255 276 4,279 159
6,519 21 3,703 27 1,520 15
closed
6,618 104 8,799 110 6,209 102
17,130 97 6,881 46 7,096 69
5,096 59 3,739 41 2,911 38
7,579 74 5,345 63 6,258 76
10,491 284 17,205 404
210 16
12,906 334 3,715 144 12,306 210
11,024 117 9,990 122 14,167 107
10,768 215 12,608 292 12,743 302
Total Sales TI Total Sales TI Total Sales TI
543,465 7006 539,814 7353 551,901 6817
The numbers don’t look too bad a first blush. With a little analysis they quickly become scary and in the end downright terrifying. The blanks are from stores that closed or transferred during this time period.
Some facts to keep in mind when looking at the store numbers. For most stores 2 to 10 items are responsible for 25% to 60 % of the total sales. Most stores do a very good job of listing items that sell well and have a workable ASP; the only problem is that they are unable to get enough of these items in their stores. The stores with a larger monthly number of items frequently sell the majority of their items at an SP that does not cover processing costs. Stores closing, fewer items, lower revenues, increasing overhead, no owners making money including me. How long can this go on? When does it end?
Tim: Love the numbers, however, you must include the stores that have closed or are doing zero dollars. Only then are the numbers reflecting the full picture! there were 465 franchise stores (of all brands) last year and only about 1/4 of those stores operating this year. That blows the stats off the page! As you have said “The concept doesn’t work!”
What are the eBay IDs for the Comcycle stores?
Funny, but I haven’t heard a peep out of Snappy’s spin machine. If the new “model” was doing well, they’d be screaming from the mountain tops.
How about those new trading assistant rules?
Wow, I can’t believe any stores are still alive. I don’t check in often as I’ve moved on with my life, and it’s much better without SA, and it cronies DG, MB, JH, AL, PB. If you were an owner, then I’m sure you will recognize the initials above.
What a bunch of crooked leaches. I wish all the best to the others who struggled like me. If anyone ever comes up with a way to make this criminal organization pay for it’s dishonest practices, I’d love to participate.
I think Snappy Rocks. It’s definitely one of the best franchises. In fact I think everyone should by ten of them! It’s simply the best business model I’ve ever seen in my entire life.
Hey Rupert. You must be inhaling the stuff I never inhaled….
-Bill
Well Bill, you never hung out with DG. Man can she PARTY! PAAAARRRRTTTTAAAYYYYYY!
RupertG and DG can party dude. They play games like “Screw the Franchisee” and “Guess what stupid idea we can come up as a smokescreen” and “Let’s blow of the stores and build software for other people” or “Lay off the employee” and other slammin games!
BTW, I heard from some of the ex-Snappy employees and while they’re back on their feet, they’re pissed.
They said Snappy is keeping a low profile and the new software is not working out that well. Since we haven’t heard a peep from them in the press, I can only guess they’re right.
Any update on the active store count? Where’s Number Cruncher? I’m not asking about specific stores, just overall count of active stores.
Well folks, Auctioning 4 You has completely gone down as of January 31st, that is one more franchisor of this ebay drop off store craze to bite the dust! Will Isoldit or Snappy be next? Who has the bigger ego?
Well,do we know how many stores are surviving on the last 2 holdouts? No one has bellied up to the bar with info.
Also, Snappy has been very quiet recently.
Hillary has me on this ‘mia culpa’ sorta thing on the stump so I’m a little distracted, however, 2 sites have disappeared since my last visit to the Snappy site. By the way, I had to remind Hillary that ‘her’ NY Giants won the Super Bowl. She said ‘who’…’.
/Bill
I talked to 3 more who are going to shut down in the next month. Snappy has been very quiet lately.
Oh and the stores I talked to are not happy campers. The sheen has worn of DG. More to come on that soon.
Ben Rippedoff – Interesting, do tell!
What, and not keep you guessing????
How about an update on the latest from Snappy HQ to the stores. I love fairy tales about magical DG and how she can make money appear out of thin air.
Chance
I would like to post the numbers with the stores that have closed but the spread sheet looks like Swiss cheese. In this format leaving a blank space for each closed store would result in way, way too much white space!
January 2008 Gross Sales Items Per ID
37,932 291
23,624 193
5,550 79
3,385 51
17,795 318
6,444 261
17,023 115
4,083 114
1,793 31
13,462 269
15,843 155
6,375 89
3,487 55
6,999 126
5,525 125
52,858 60
1,761 12
27,449 231
23,578 192
20,406 280
16,170 136
3,487 53
5,550 79
317 15
2,468 73
38,350 158
18,740 105
24,353 373
13,899 220
4,026 145
3,803 22
4,971 106
6,526 50
1,621 26
5,351 56
13,241 406
10,246 166
13,415 126
43,457 284
Total Gross Sales Total Items
525,363 5646
21 of the 39 Snappy stores had Gross sales of less than $10,000.
Interesting to note that January 2008 Gross sales are only 34% of January 2007 Gross sales for the same period this time last year.
Can anyone see the writing on the wall?
Chance,
Regarding the state of Snappy and store closings.
Removed from the Snappy Auction web site:
Springfield, MO
Cartersville, GA
Madison, WI
Mt. Pleasant, SC
Norwalk, CT
Marietta, GA
Davey, FL
Omaha, NE
North Atlanta, GA
McLean, VA
Allentown, PA
Red Mill, VA
Snappy sold at least 112 franchises (per published reports). 85 stores were built out and opened by franchisees. Currently 39 stores are listed as still being open by Snappy.
This shows that about 60 percent of the stores that ever where have closed.
From 60 stores in 2007 to 39 stores in 2008!
Will Snappy make it until the end of February?
I’ve only just found this thread and am finding the conversation quite interesting. I’m curious to know if any of you have heard about the new rule that all eBay “registered drop off” locations must change their company name by April 2008 if it contains the words “auction” or “auctioneer”? The new policy further requires all signage and marketing materials to reflect this change by December 2008. Any gossip on what “Snappy Auctions” is going to do for their franchisee’s?
Hmmmmm….very interesting:
http://blog.skipmcgrath.com/public/item/195529
http://allbusinessauctions.wordpress.com/2008/01/20/ebay-trading-assistant-business-plan-new-trading-assistant-agreement-options-for-drop-store-owners/
Could be a problem, but I’m sure DG has a “solution” like forcing stores to submit due to some obscure clause in their franchise agreement. If “21 of the 39 Snappy stores had Gross sales of less than $10,000″ is accurate, this could be the last straw.
Boy, I’m glad I escaped the Snappy Auctions madhouse. Anyone up for legal action?
Purple: These franchisors haven’t done squat for their franchisees in some time now (other than to threaten them). Best guess is that they will no longer be in business by Dec! I am sure Tim aka and others will agree! They, and the other ebay drop franchisors, are losing ground fast! The sad part is that the individuals that bought the stores are the ones that are getting hurt!
What is the alternative for the individual store owners? Will they be allowed to change their name and operate independently? The topic makes me wonder why buying into the franchise was worth it to them in the first place…
Purple, goto AmITheOnlyOne.org and read. The whole concept does not work, and the franchisors lied, stating that these were proven concepts and turnkey systems, and they were neither. These snake oil salesman were in a new enough field that their lies could not be researched sufficiently until recently! The best choice a franchisee can make is to close down, instead of pouring more money and time into these moneypits. In fact, many of the franchisors have already folded leaving the franchisees stranded and on their own. The Concept doesn’t work, and hundreds of families have bankrupted, divorced, or ruined their health all in the name of BAD franchising. I believe that the question at this point should be, why hasn’t the press, the gov’t, or someone signifacant gotton involved? Welcome to free enterprise, ego and greed!
PS. The stores were supposed to take the word “eBay” off their signs and tag lines a couple of years ago-opps! that didn’t happen either!