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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Hey Too Bad, thanks for sharing, interesting article and that they partnered with DG, her reputation would keep me from doing business with her! :)
Scott, Great photos! Looks like a good conference for you. Is ebay involved at all? Also, isn’t Rocket place the guys who bought up the “Online Outpost” drop off stores? Do you have the answer to that one Sean? I do know they sold them off! :)
I guess you did not see the eBay representative in the photos…?
And no, RocketPlace is the new name of The As Was Conference – Better Name, Same Conference.
Nothing at all to do with Franchising or Drop Stores or Online Outpost. Sorry Chance – No innuendo working for you there…
Just a conference for people who want to learn more about selling on eBay…
Not too late to register… See You in Orlando!
At first I thought Rocketplace was that pink sheet traded eAutoDrop partner, but that was Rocket City. Wonder how they’re making out?
http://www.franchisepick.com/will-eautodrop-be-the-next-overly-hyped-ebay-auction-franchise-disaster/
I’m not sure what you’re asking Chance… were you implying Scott was with Online Outpost? He sold franchises for a different company, which I can’t disclose, but if I could would look like this but with letters instead of dashes. A—— -t –d-y.
Actually, it’s not real confidential. If it were, I’m sure Scott wouldn’t have put it in his public Linked In profile, visible on the first page of a google search.
Make sure yu email Mr Capps and give heim an earful about Snappy Auctions. It would be refreshing to see the press actually do some investigative reporting instead of being the puppets of local business.
Here’s the email address again:
milt.capps@nashvillepost.com
Sean:
I had spoken with some friends that once worked with Online Outpost, and was told they were bought up by Rocket something, couldn’t remember (memory lapses at my age). But it was Rocket City, and I haven’t had much extra time to check it out further. No insinuation, just clarification. At this point in time, I don’t think anyone should admit working for drop shop franchisors, it certainly isn’t resume material!
I did a post some time back about Rocket City which, if I remember correctly, was a franchise being offered to car dealerships to help them add ebay sales as a profit center. There have been successful car dealer add-on franchises (J.D. Byrider) but this didn’t look like one of them. They had earnings claims and other inappropriate content in their releases. It also, I believe, was being traded publicly as a penny stock, I think. I’ll have to check. Looked pretty dubious.
Scott: I’m with Chance on your resume. Your bio on the Rocketplace page included your past as something like a Master Franchise agent for one of the “largest eBay drop off store chains in the nation.” My first thought was iSold It or Snappy Auctions, neither of which are a positive. Not naming the company sparks curiosity, and a Google search revealed AIT which seemed worse somehow. Including that creates the impression that you’re addressing people who don’t have a clue or know the industry.
I think it’s a positive if you position it as a learning experience in what doesn’t work, but not as a success story. (Just a little more unasked for input).
Were you a Master Franchisee with them, or an employee? Did you have a store? Pay a franchise fee? What’s the story?
Incidentally, this post is on its way to making history as FranchisePick.Com’s first thousand-comment post. I think this is #812.
If it hits 1000, I must send Snappy Auctions a thank you note and a token of appreciation. Any ideas?
Scott, just out of curiousity, why did you leave Auction it Today?
Let me understand…
First it was insinuated that I never worked with a Franchise at all… and that made me dubious and unscrupulous. Then it was intimidated that I must have worked with the worst of the pack of franchisors, Like i Sold it or Snappy or QuickDrop….
Now upon further investigation via a simple Google search my “background check” reveals differently…and I did not work with any of those really really bad franchisors… My claims are still dubious.
Let me ask this…
Did I ask anyone for any money up front? Did I send anyone a prospectus? Have I released franchising projections with outrageous claims of future earnings? – No?
All I have done is enthusiastically present an idea which requires little or no investment at all from the people who need to get more out of the drop store situations they are currently in. An idea which may help them to transition out of the full stand alone drop store model.
What I have said about my past has been proven truthful, and I have also said that if anyone in the world would like to pick up the phone and call me, I will happily discuss whatever will make you feel better about my past in person.
I really do not think people who have purchased franchises in the past should be wary of a guy who sold similar franchises in the past and freely admits that he discontinued doing so, not when sales dried up, but when he saw for himself the future which has come to fruition. I got out long before these other chains folded and I did so of my own accord because I could see from my own numbers (store revenue numbers) what the future held. It was a tough pill to swallow and it caused a great deal of turmoil for me to make that decision. But I made it because it was the right thing to do.
Because I have respect for certain people who are still involved and because I have publicly voiced my opinions on franchised drop stores in my blog and elsewhere without specifically naming where I received my perspective. And because I have outstanding agreements which state I will not do so. I will stand by my word.
Not rising to the bait here fellows…
Sorry – no matter the insinuation or claim, I know the truth and I stand by it. My involvement with any franchise has no relevance here other than my agreement that full stand alone franchised eBay drop stores are not a healthy business model. I agree with you on that point. Amazing?
Scott Pooler said: …it was intimidated that I must have worked with the worst of the pack of franchisors, Like i Sold it or Snappy or QuickDrop….
Scott, you misinterpreted my point. Your bio on RocketCity.com says you’re a “Former Master Franchise representative of one of the largest eBay drop store chains in America” My point was that this would lead people to believe that you worked for iSold It or Snappy Auctions, as I doubt Auction It Today would come to many people’s minds. Secondly, it implies that being part of a large dropoff chain is an impressive career highlight. If that’s what you want to convey, that’s fine. I was just letting you know how it came across – like the dollar bills falling in your site header.
You state I really do not think people who have purchased franchises in the past should be wary of a guy who sold similar franchises in the past…
Whether they should be or not – they are. Again, perception. You encouraged people to invest in an eBay related online selling venture that did not work. You are now advising people on investing in another eBay selling venture that has not been tested, refined nor stood the test of time. If you think that’s not relevant to your potential buyers, maybe you know them better than I.
Sean,
That bio on ROCKETPLACE (Not Rocket City) was written for attendees of a conference in which I have been asked to speak about eBay consignment as it relates to business. Why & how it can work and why and how it can fail. My experience working with franchise owners is relevant to that focus.
And… please show me where I have asked for an investment of any kind? Did I ever say, “For the unbelievable price of x dollars I will share my proven system with you?
No, I did not….
I said I am doing something I think is new and is being well received by local small businesses in my area. I shared what I was doing and I offered to help other drop store owners do the same, even if they did not have the necessary design or html skills to do so. I never said these drop store owners would invest in anything. They can try the idea, and if it works for them, great, if not… ok. It is working for me and I have the solutions available to make it work for others. And I am wiling to share in profits (if any are derived) from such an offer to local businesses, with those who sell the solutions and services in their local market. This is not an unproven model, this is normal every day business.
I consider my time spent in every aspect of this business a “career highlight” from selling half million dollar RV’s to helping franchise owners make it on their own even if the franchise I worked with did not see the problems which were obvious to every store owner at the time.
Not every person who has worked in franchising is the Devil. I can see from your resume that you have worked in the field for some time and seem to be proud of the fact. I am sure every franchise you have sold has been a raging success.
The fact is that I walked away from this franchise model when it became apparent that it would end up as it has. I am also proud of the fact that I did not sell one more store when I had the real numbers in hand which predicted the current situation. I compiled these numbers myself and they lead to my decision to discontinue my association with the program. This does not make me a saint but it also does not prove me a sinner.
When I was involved with franchising it was still widely accepted as one of the hottest franchise models in America. It cost me a great deal to walk away. I am sure from your experience you can estimate what those costs may have been Sean.
So, if all of that history is a reason to doubt my attempts to help these very same store owners, so be it. My bio on RocketPlace (Not Rocket CITY) was not intended to convince franchisees to follow me into a new unproven business model. It is part of a conference meant to help people avoid such things.
Scott:
You sound like a straight shooter to me. I never said otherwise. Review my comments and you’ll see that my comments are on the perception created – not you personally.
I have no problem with selling opportunities as long as the risks, as known, are clearly disclosed and that conjecture isn’t dressed up as fact.
Good luck with it, and I hope the Rocket City seminar is a homerun for you!
Well put Sean. Anyone who came from the franchisor side will be at an automatic disadvantage in this forum since most franchisors were not exactly models of good business ethics and avoiding questions about that history only makes it worse.
I for one will hold any more judgement until Scott’s model is tested in multiple markets with varying demographics. The argument that it works well in his area is exactly the same one Snappy Auctions used when they started selling franchises based on one store. That one market is an anomoly and very few other stores have been able to reproduce the model especially in markets that are not similar. Also, in many cases, your network is more important than any business model. Some stores are surviving because they were able to leverage a niche like used cars, estate sales or certain business equipment. Many other markets have not been able to do that for various reasons. So until Scott’s model is proven in multiple markets, I agree it’s “experimental”.
Sean:
Online Outpost is now heavy into the auto sales model on and off eBay(which did not work for ISI), and it makes since from what you said, that Rocket City (not RocketPlace) purchased OO . OO was one franchisor that was decent to his franchisees, and they ran good software as well, “Auctionsound”.
Also Sean, many of us were master franchisees, or area developers, what ever you want to call it. It just means we lost MORE money!
Scott, alot of ads don’t have prices listed, but they are still trying to sell something. Have have a good conference!
Hi. I don’t read here, but I just got wind of this topic… so if you want my attention, please email me as I may not come back! No offence… the drop off franchise thing just isn’t my thing. :)
I’m Debbie from As Was. Our conference is called RocketPlace. We have NOTHING to do with Rocket City, and had never heard of them. Many companies have Rocket in them, but that doesn’t make us related. My business is http://www.aswas.com and the event is http://www.RocketPlace.com. We renamed it because “The As Was Conference” was long, meaningless, and some people thought they had to be our client to attend.
Rebrand-o-rama!
I recommend our event, even to franchisers,TAs, and drop offs. Our intention is to help serious eBay sellers with their pain points, which evidently no other event is covering. So I’m trying to help you! :)
And be nice to Scott. I think he’s one of the good ones. :)
Thanks, all.
Well, that’s nice what you said about Scott and all.
Back to the real issues here. I did talk to someone who knows something about the Snappy S3 deal and they said it’s not doing too well: mostly low dollar stuff. I know a number of stores tried a very similar program and even told DG about their efforts (hmmmmmmm, kinda makes you think). Even though some of them had ties to large healthcare organizations, none of them were able to make it work. I know one store sold an MRI machine, but after they discounted their fees and put many many hours into it, they didn’t really make any money. So, I ask, why does DG think she’ll make it work when they couldn’t? Maybe it’s that ego thing.
It’s been a while since I contributed, so here is my latest update. Since the last time I pulled data in December 2007, 5 more Snappy stores seem to have closed since they have no listings on eBay and have not for some time. Also, the average number of listings for the remaining stores is down with more than 60% of the stores with 35 items or less per week. Let’s assume they were able to sell all those items at $100 each, that would not even bring in $15K a month. If you have owned a store you know that will barely pay rent and some utilities, so I don’t know how these stores are managing. I wish them the best and say again, please contact AITOO if you feel you need to get out of the eBay Drop Off store business.
you guys have way too much time on your hands. (or is this some sort of wierd hobby for some of you?)
Zack…sorry zack with a small z (like your brain?), if you’ve read enough to make that comment, but not enough to understand; you’re the one with a problem….
Zack, how did you find this forum if you don’t understand the basic premise of this site: Snappy Auctions.
Talk about someone with too much time on your hands. WE have ssomething to talk about. Why are YOU here?
Speaking only for myself:
Weird hobby.
Is Zack “R.” or “RupertG” reborn? Seems the attitude is the same. Zack….come out to play…..Zack….come out to play…
A friend of mine lives in Nashville TN and emailed me a picture he saw when he was visiting a client in the same building where Snappy is headquartered. The picture was a sign in the elevator saying Snappy Auctions was having a moving sale and giving away free office supplies.
Oh have the mighty have fallen. I should ask him to buy me a momento.
Anyone for a ‘Snappy-Un-Polooza’? Hillary and I think it would be some fun and a a great twist on the one and only ‘Snappypolooza’…!
-BillHill
Bill: Do Hillary’s handlers know that you’re here, communicating in public?
Hrrrmff… What Hillary and her manglers know vs. what I know are 2 different things!!
-Bill
So, if Snappy is moving it’s office to a smaller space, does that mean they will no longer sell franchises? They are giving up their training space and additional office spaces. I guess they will spin this as “restructuring” or “right sizing”.
Wow, what an interesting thread!
I tried to read as much of it as possible, but I only made it about 1/3 of the way down the page.
Let me put in my two cents — which is relevant, since I helped open the Manhattan Snappy store and made it into the highest grossing location for a short time.
That model was FLAWED from the beginning. I have been selling things online from long before eBay ever existed, and never could understand why someone would want to have a “franchise” when all they had to do was simply open up an eBay account and start selling. It’s NOT rocket science to sell stuff on eBay.
Anyhow, I opened the flagship store in Manhattan with the owner, he was a VERY cool guy with the typical entepreneurial leanings of many investors.
We started with 4 employees — myself as manager, a customer service person, and a shipping guy. Rent at that location was nearly $12K, on the upper east side. YIKES!
However, we had quite an interesting clientele, that brought us lots of interesting items, tons of high end fashion, collectibles, jewelry, etc.
The thing that scared me RIGHT AWAY was the commission structure. I sold some gold coins for a client, and with the exorbitant fee stricture, she got less than she would have gotten from any pawn shop.
We got burnt a few times with fake Hermes bags and other replica items.
I busted by BUTT in that place for a few months, and managed to maintain listings by the hundreds. It was a LOT of work, but I wanted to see the place succeed, and I wanted that location to be number one in the whole franchise.
We got a fair amount of support from Snappy corporate. But our hands were tied in many ways. We almost immediately started getting bad customer feedback from our clients, especially when they were getting checks for 98 cents.
The shipping charges were bogus, and any savvy eBayer knew it. Shipping PLUS a $6 handling charge? For an item that cost maybe $3 to ship?
The Manhattan location COULD have been successful, due to the location, but it would have taken a LOT of work, and a LOT of outside sales — roping in some retail stores that wanted to liquidate, etc.
I went on several outside sales calls, trying to convince some jewelers and electronics retailers to let me sell their backstock — but there was NO PROFIT for anyone. Except for corporate.
Anyhow, after a few months, I saw the writing on the wall, and got out of there. Lucky for me, I didn’t own the store, and had no ties financially to the franchise.
The owner was a cool guy, and would have been better off if he and I would have just started our own store from the beginning.
Snappy corporate wouldn’t even let us start our store with my pre-existing eBay account — that already had 100% positive feedback with hundreds of completed sales.
For anyone out there who wants to do an eBay drop-off store — just DO IT YOURSELF. You don’t need any sort of franchise to do this, it’s pretty simple. And if you can’t figure out how to do it yourself, then you are better off NOT TO DO IT AT ALL.
And slightly off-topic — now that FEEBAY has raised their rates, eliminated the seller’s ability to post negative feedback, and basically are starting to ruin what was once a thriving marketplace…it’s almost not worth selling on eBay AT ALL.
Most positive thing about Snappy was our corporate rep, I think her name was Adrian, she was a HOTTIE :-)
Make sure you email Mr Capps and give him an earful about Snappy Auctions. It would be refreshing to see the press actually do some investigative reporting instead of being the puppets of local business.
Here’s the email address again:
milt.capps@nashvillepost.com
Scott…I wrote down your name. I come back to this thread once in awhile to catch up. I understand what you are saying and you are correct, there are ways to backend sell. I am still working on my project. But when I get it done where other people can use it. I will contact you. Merry Christmas all!!! OK…OK…I will get back on my rowboat and go away.
Not sure how to respond to that John, is it Christmas where you are? Hmmm Interesting…
While I am here, some of you may find value in my latest post on the Trading Assistant Journal:
http://allbusinessauctions.wordpress.com/2008/03/08/google-ebay-trading-assistant-directory-google-search-and-consignment-sellers/
Let me know what you think with comments anytime…
Merry Christmas?!?!?!
Scott, I read your article anc concluded eBay is just trying to find ways to lessen liability. I’ would venture to say over 50% of stuff on eBay is new from stores, so restructuring their seller agreements will better fit that group.
I still don’t understand why anyone would continue to sell on eBay unless they were a volume importer or an individual with a few things to sell. To each their own.
Been there, some folks think they can build a better mouse trap. Instead I prefer to just give credit to the franchisees that have tried it all (or most of it), and want to see them get out with the least amount of problems.
Interesting bit of info… the ISI store that there Corp. touts to be a profit, is up for sale for less than 1/3 the original cost of the store. They are saying its due to a family medical issue (lets see, lack of medical insurance maybe). Why would anyone sell out so cheap if it is a profiting store? Wouldn’t it help pay the medical bills?
NOTE: Reselling one of these stores can put you in a very liable spot (as well as ruin someone elses life)…think very carefully before offering your store up for sale.
BEING A FORMER SNAPPY EMPLOYEE THAT HAS BEEN THERE FROM ALMOST DAY ONE I AM HERE TO TELL YOU ALL ITS IS NOT WORTH THE HEADACHES….YOU ARE ALL RIGHT ABOUT 1 THING CORP. IS THE ONLY ONE MAKING THE MONEY….ALMOST 4 YEARS OF MY LIFE WAS GIVEN TO THIS COMPANY AND I GOT NOTHING BUT A BIG WASTE OF TIME…I SAW THE RISE AND FALL OF ALL THE LOCATIONS YOU MENTION AND DG IS THE ONLY ONE MAKING IT…OR TRYING TO WHEN MB LEFT AND PB SOLD HER STORE AND MOVED TO CORP…WAS THE BEGINNING OF THE END…THEY CLOSED BELLEVUE AND FIRED ALL OF THEM IN ONE BREATH….GIVING NO REGARD TO PEOPLE WHO HAD FAMILIES OR ANYTHING….NOT TO MENTION THE MANAGER THERE JUST FOUND OUT SHE WAS PREGNANT….NOW I HEAR THAT THERE IS NO MORE CORP…THEY ALL WORK FROM THEIR HOMES AND THERE IS A PLACE AT VANDERBILT THAT THEY HAVE AN “OFFICE”. WHEN THE MAIN PEOPLE FROM CORP WHO KICKED BUTT AND MADE THAT PLACE LEFT IT WAS DOOMED FROM THERE…JH…MB….PB…THEY WERE ALL GREAT TO WORK WITH….I AM JUST GLAD I AM OUT. THE CONCEPT DOES NOT WORK…THEY ARE RIDICULOUS TO DEAL WITH AND IT WILL PROBABLY SEE ITS DEMISE SOON….WOULD LOVE TO SEE A CLASS ACTION LAWSUIT THEY MAKE SO MANY PROMISES AND NONE ARE EVER DELIVERED…ANYWAY GREAT SITE I VENTED AND I FEEL BETTER.
I heard Snappy HQ had moved to a smaller office in the same building, so they still have an office and I wonder when they will move out of that office. The deal at Vanderbilt is not working just like we predicted.
DG is not an innovator. She’s a copycat and she gets her ideas from others. I know because I know where she got the idea for the Vanderbilt deal. Some people are visionaries and others have to get their visions from others and then call them their own.
I am working on getting on with my life and wonder how DG can sleep at night.
EXACTLY YOU HAVE TO MOVE ON ME TOO….I ADMIT ITS NOT BEEN EASY….THIS SNAPPY CRAP HAS LITTERALLY BROKE ME…I WAS SO EXCITED AND HAPPY AND THOUGHT SO MUCH OF THE WHOLE THING…TO THINK I WAS JUST CONNED MAKES IT WORSE… NOW I WONDER ABOUT THE OTHER WHO WERE “SHUT DOWN” BY CORPORATE…WERE THEY DOING WRONG LIKE CORP SAID OR WERE THEY JUST TOO SMART FOR THEM AND THEY FOUND A WAY TO LET SHUT ‘EM DOWN? MAKES YOU THINK..OH WELL ITS NICE TO HAVE A PLACE TO VENT!HAVE A GOOD ONE
Its interesting that on their website they do not show the slide show of the “HAPPY” owners anymore…it also says they have 42 franchises but really there is only 33 one has no auctions one is the corp and there is one that is “e-auctions” whats that? anyway most of the “listed” locations are duplicates…and it doesn’t show a place to become a franchise owner on the front…you have to look real close in the bottom right hand corner it says franchise…i wonder whats up with all this???
Is there some relevance to Cold Hard Reality’s ebay link or is this promo spam?
I’ll leave it if there’s some significance…
Looking like spam to me Sean… Not a bad auction but not relevant here.
How have you been?
Scott
Link?????
The relevance is that it was an auction for a new S3SALES ID in Kentucky.
Still want to know more about these S3 eBay IDs. Send more info.
What would you like to know?
How about eBay seller IDs for all S3 accounts and any info on whose stuff they’re selling?
Search through Snappy’s all auctions on their website, you’ll see the listings. It’s mostly IT and Medical stuff.
Just as I thought….it’s mostly crap. I hope Comcycle didn’t put up any money like those poor saps in Japan did. Now THERE’S a money maker!
Agree, and whatever they’re paying Snappy for the SW they could get through Auctiva for FREE.
Correct me if I am wrong, but didn’t the Snappy franchise start using AuctionSound as a listing management software towards the end?
I did not think they had their own proprietary software package.
If they were using AuctionSound – Auctiva is not really a suitable replacement Cold Hard Reality.
Free is not always the best. Auctiva is great for the at home user or part time TA. But not really a reliable package to depend upon for business.
Of course if Snappy was using Liberty or some other older package, you could be right. I thought I had heard they had moved towards AS though.
So, you’re on this blog and you no idea that Snappy’s whole company is based upon their software?
Yes, it’s proprietary – that’s the whole point. They never used Auctionsound.
Auctiva offers consignment, and it’s the same damn software that Snappy advertises. FOR NOTHING.