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, gee you got me.
I’ll stop asking logical questions, because every time I do all of you just tell me you were scammed and the concept doesn’t work. I still am dying to know what legal reason the three of you plan on suing for. What lawyer in their right mind would take on a group that claims to have been scammed, and have nothing in writing that a court would hear.
Nobody said a formal lawsuit has been filed. You seem very nervous R. A little worried? Not sure what’s going to happen? If you truly do not have a vested interested in Snappy or ISI, what does it matter to you? Read about it after the fact. We are still waiting for Ken or Debbie to call Sean and do an interview but it sounds like they are scared. Very scared.
It doesn’t matter to me, I suppose I will just sit back and watch the show.
This is all funny. All you people whine and complain all day. Why don’t you put all of your energy into a class action law suit instead of crying and whining? Bitching and moaning on a blog is worthless if you don’t take some real action.
Well, I can tell from the lack of response from any legitimate store owner or representative from Snappy HQ that there will not be a response and R. is just hear to phish to legal information, so I am here to say my job here is done.
The stores are readling this forum and have been given tangible proof that the model is flawed. The only other people (other than store owners) are here to harrass, so I look forward to staying in touch with the real store owners offline.
Sean, thanks for the forum and moderation. I feel we’ve done what we set out to do and no one has taken up the challenge so I can only conclude the position of bloggers like Chance, Tim, Been Had, Un-snapped and the like is undeniable. To stay on this forum any longer would only feed R.’s need for, as she put it, “bitterness” and the “show”.
Good luck to the store owners who will continue to learn from this blog. You’re adults and can make your own decisions.
j. torse said: Bitching and moaning on a blog is worthless if you don’t take some real action.
Have you done a Google search for Snappy Auctions or iSold It franchise lately? At least two out of the top ten results link to these discussions. Entrepreneur Magazine hype is being replaced by the truth. Do you think potential franchisees aren’t hearing this? Do you think the franchisors aren’t getting the message?
And what gives you the idea that no one’s working on a class action lawsuit?
I want to apologize for my nephew Melvin getting on your blog, don’t you know. He has a fasciniation with legal issues and calls himself R. or J. torse or wantsomecheesewithurwhine or the like. Ever since his g-darn issue with his shrink about delusions of grandeur and his fear of girls named Debbie, he just hasn’t been the same. We try to keep him off the blogs and off the Dungeons and Dragons sites, but he sneaks off to his friends house and gets on his computer. If we can get him to quit doing this and eating his boogers, he could grow up to be OK, don’t you know.
So if he bothers you again, just call us and let us know. Also, he has problems with gas and body odor but he’s working on that. He’ll grow out of it yubetchabygolly.
P.S. So what is this Snappy Auctions anyway?
Nearly Snapped, welcome aboard, and you are right on target.
Get real, hang in there, R is obviously fishing for legal details, and quite afraid of those in the works. Legal plans are not for discussion on this or any blog. However, justifiable cause for legal action is certainly there!
Also R’s satire and lack of knowledge in this industry only reaffirm the fact that he/she will never understand this blog. The fact that no one has come forward with successful facts only supports what we have all been saying.
Remember that ANY information on how these stores are really doing helps to educate the potential buyer (including Japan, Australia, and others). And lets just say that none of the franchisors have had many sales lately. Here is a quote from one franchisor to his minions issued just recently:
“Even though we continue to have people who are interested in our concept, we are not focusing our attention on new franchise sales. In fact, we have not sold any new franchises in 2007.” (Tells me they have a few problems…)
Now it is time to get the graveyard list updated and all exfranchisees need to contribute. At least then potentials can compare the closed list here with the “somewhat accurate” UFOC ’s the franchisors give them. (In other words the franchisors will have a difficult time of lying).
Snappy stores, feel free to blog here. If you are fearful of retribution by Snappy Auctions HQ, just don’t post anything proprietary, inflammatory or company confidential information. Or if you’re concerned about what you can say, go to this website:
http://www.amitheonlyone.org
and email them to better understand how blogging works.
Tell us how your store is doing. We continue to ask for success stories or at least more comments from real store owners.
You can call yourself whatever you want on this blog and no one will know who you are. That’s the beauty of forums like this.
I know how it feels to own a Snappy Auctions franchise and how helpless you feel because it’s not working out. I hated the way it made me feel when my store was flailing about and doubted my abilities after a while. But after I visited the site above I had an epiphany: it was the model, not me. If you read the postings above you’ll hear from other store owners, past and present. And to date, we have not had one person provide a shred of evidence to the contrary to the statements that the model doesn’t work.
It’s not your fault.
Chance said: Now it is time to get the graveyard list updated and all exfranchisees need to contribute. I agree . Please email any updates/corrections to me at info[at]ideafarm.net or post as a comment. This can also inform new franchise buyers who may be unaware drop-offs have failed in their markets. Visit Franchise Graveyard of eBay Drop-Off Stores.
Been Had: Your epiphany that the model doesn’t work is consoling to those franchisees who think they are defective. It may get them back in off the ledge temporarily, but is ultimately not going to help those still in struggling to survive… in fact, it’s an argument for giving up.
The case has been made that the concept is broken. The FRs silence confirms that they know it. So the next logical step is to offer some ideas for what can be done to fix it. Franchisees are in a position to push for change. What should those changes be? Drastically reduced royalties? Negotiation for concessions from eBay? More freedom to experiment? Enable them to operate as a home-based business? Establish franchisee associations with real authority? Transform the franchise structure into a member-owned co-op with low fees and more benefits?
The course of this discussion is fascinating and important. What troubles me, though, is that there are two groups here: former and current franchisees. The former franchisees are pissed off, convinced there’s nothing salvageable in the concept, and (barring full refunds, cash damages & apologies) would like nothing more than to see these chains collapse so the rat @#%&s don’t get away with it. This doesn’t help the current franchisees with their problem.
Let me pose a challenge to the Naysayers: The concept doesn’t work as is. Point conceded. So what should be done? What, specifically, do you think franchisees should do about it? What do you want to see the franchisors do about it?
Your complaints are compelling & undisputed. Respectfully: Is that all you got?
Do you have any solutions to propose?
Sean, one thing I’ve learned in life is that when it’s over it’s over. You can put 50,00 volts into a dead horse, but you can’t bring it back. That only works in the movies and in bad ones at that.
As one of my mentors said ” you can take a pig, put make-up on it, a fancy dress and call it Monique, but it’s still a pig.” What we have here is a pig.
I have a proposed solution and it’s been mentioned above in this blog. The only way I can see existing stores survive is to get out of their contracts so they’re not paying our 15-20% of their earnings to a franchise, get some good software like Auctionsound, get out of their expensive retail locations and focus on a limited set of products.
Has anybody tried this? Did it work? Sean is looking for an example of something that worked and I’m really curious to find out myself.
Been Had, thanks! We moved our store to our home and sold very specific items that we knew alot about. We also worked with two local auctioneers, but again with a variety of items, we saw the exact same problems the stores were having, from takin to shipping-far too labor intensive.
We also worked with an huge importer in their warehouse, but only long enough to setup and teach their people. It is cheaper for Walmart, Target and others to have inhouse staff. It also minimizes storage, breakage, and other problems. So once again, none of the drop off store models worked here either.
Along those lines, ebay has changed, and the profits are getting smaller as collectors items flood the market. Also, trying to compete price wise with the manufacturers and China make it hard on all the sellers.
So, working from home with no royalties and VERY little overheads, we were able to pay down some of the bills left from our franchise fiasco. Even then, when all the numbers were in, we were making only about minimum wage, with NO perks.
If you were at ebay live this year, there were very few powersellers. There were only half the number of people attending the conference as the year before. The conference itself was nowhere near as nice as the previous two years (so eBay did not appear to be spending the $$$ either).
To summerize, you need NO overheads, a niche, and knowledge of what you are buying and selling. Pay less than 10 cents on the dollar, and work long hours for low pay with no benefits, sick days, or vacation. That is the new powerseller. None of this is a drop off store. Being a pawn shop, junk yard, or Goodwill, was not the intention of any of the franchisees, and they are completely another concept.
Sean, the single biggest issue these folks have is there lease, they can not move home or to warehouses with the personal guarentees on the leases without first settleing with the landlords. They have put every dime they have into these stores on a monthly basis so there is no money to purchase overstock (which is a temporary fix anyways), and starting a different business in the same place has a whole new set of problems. (We know, we tried that too).
I do believe that a franchisee association, as suggested by Sean, run by the existing franchisees (not the franchisors ie: Pace group), would give them some say in how to deal with the issues they are facing now, until they decide what they can do.
Once again, the eBay drop off store concept needs to be completely abandoned!
Uncle Joe, we appreciate your efforts, maybe he will grow out of it! LOL
Okay listen up — I’m not corporate. Further all of you who have time to make these lengthy posts every single day — get a life. Karen and Gene (aka Chance)… you are profiting off of peoples misfortunes. You sit in your comfy little 1 BR apartment in your lite 50 year old chair and type on your Commodore 64 your posts.
Why someone would think Im corporate? I have no idea. I’m not.
Anyone who says location is not important… go take a business course. I here University of Phoneinix online has a great program. LOCATION – LOCATION – LOCATION. Don’t rant about on Manhattan store– you’ve no idea why they closed.
Now Everyone — GO GET A LIFE! SORRY IT DIDN’T WORK OUT FOR YOU. Go get a job, or an education, whichever you feel you need more.
Rupert, you have issues don’t you son? I know you probably just need a hug and some hot cocoa.
If you have something positive to add, then pipe right on up son. Otherwise, I’ll have to call your momma. These people are just trying to help others to avoid their misfortunes. Why don’t you try to do the same, son?
Now get back to your fantasy game, that is what they call what you kids do these days isn’t it. And don’t come back unless you have something constructive to say. Go on….git
RupertG, I am sorry you are so angry and feel threatened, but if you reread the posts here completely, you will see that many people have been helped. There is no need to make it a personal issue with Karen and Gene, whom you do not know. K&G get NO profit or pay for the time they spend helping others. You would know this if you read their website, AmITheOnlyOne.org. Also if you take the time to get to know some of the Ex franchisees out here, you will find that they have as much or more education and business experience as you. They chose to share their knowledge with others (in their spare time), unlike you. No one is twisting your arm to read the posts here! So, why don’t you share your store P&L numbers, and that GREAT location you say you have, so that others can make it work as well.
RupertG: Take a deep breath. Take your medication. It’s going to be all right…
Why would anyone think you were corporate? They probably misunderstood when you said that just because stores are failing left and right doesn’t mean the biz plan doesn’t work, or that the folks at corporate “definitely have a passion for what they do, and a love for their franchisees.”
You are right. These people are just sitting around in their closed stores with nothing better to do than blog until their leases run out. Why can’t they feel the love?
For the record, I agree with you! Location! Location! Location!
(As long as that location is your rent-free spare bedroom, not a storefront)
(Chance… hang on to that Commodore 64. It could be valuable some day)
Actually its a Trash 80!
Hey Rupert, where’s your store, so I can send you the TR-80 to put on eBay for me! Think I can get alot for it? (And I want a 10% discount or better)
Chance — Unfortunately we do not discount commissions. Please look in your local paper for coupons. Additionally please note that coupon can only be applied to an item that sells for more than our $50 minimum. Thx!
Oh and you must accompany item to store — as we would like you to sign the agreement in person. :-)
Thanks, I have a Timex Sinclair too – but WHERE is you store?
“Further all of you who have time to make these lengthy posts every single day — get a life.” Bu this does not apply to you correct?
“SORRY IT DIDN’T WORK OUT FOR YOU.”
You mean it didn’t work out for anyone. Do you have any ideas how to make it work? Wait, it doesn’t matter if it works or not, you took the money and ran.
You think a CEO of Snappy or her peons would have better things to do, (like, oh my gosh, help stores!) than get on here and post nothing positive at all.
Rupert, I have my grandmother’s china and even though there’s no name on the china, I know it’s worth several thousand dollars and I want a discount because there’s a buttload of it and I want you to pay me in advance. Oh and I won’t take less than $3000 for it and here’s a truckload of other worthless crap.
Sound familiar anyone?
A truckload?! I’m excited! Does this mean his average selling price will be better too? (A single sale of $3000 can raise it considerably!)Rupert, you might even get to a breakeven point if you do all the work yourself! But you still haven’t told us that perfect location!?
Call me Tim aka Flat Broke, can you provide us with the latest sales numbers on Snappy stores? I did some perusing of eBay over the weekend and saw many Snappy stores with 15 items or less listed on eBay. Even if the average selling price (the Holy Grail according to Snappy) was $200 and they had a 100% sell through, thats still only about $12K a month in sales and might pay rent, but nothing else.
Oh and by the way, this is a seasonal business. For example, every store sees a significant drop in July and January, so you need to do enough the rest of the year to cover these months.
I guess we can call the “…Gordon called for everyone to fight back on these blogs and tell it like it really is….” dead since we have not seen any responses from the stores. Or, they agree with what’s been said here.
Tim, any update from your friend on the latest position from Snappy on this forum?
Out of respect for open stores, I omitted the store numbers; if Sean would like, I would be glad to send the original spreadsheet to him and he can do as he sees fit with it.
Position of Snappy, yeah, their heads are still planted firmly up their ass.
As of February
43,210 Corporate Store – More on this later.
10,533
46,997*
20,851
12,217
1,380
6,296
58,346*
9,022
13,109
8,178
10,544*
7,900
7,755
13,538
16,271
16,523
7,283
10,777
5,333
21,170
16,868
21,191
24,124
5,837
14,430
6,945
5,365
28
7,915
70,476 Manhattan Now Closed!!
11,479
7,298
74,620*
2,229
5,655
6,843
22,144
12,659
1,238
29,395
20,396
32,182
34,626
11,034
17,058
* Denotes one ID with more than one physical location
Remember these numbers DO NOT include eBay motors. None of the stores do any amount of volume on eBay motors.
These numbers look similar to the numbers I pulled for June, July and August. I’m sure someone will say the numbers are flawed, but I reiterate that even if they are off by 50% to the good, the stores are still far from break even.
I admire the stores’ tenacity and belief in their abilities, but am seeing the same results over months of data.
These numbers and the lack of any positive information from stores or Snappy HQ lead me to the undeniable conclusion that there is something terribly wrong.
So why aren’t we hearing anything to provide solutions to the obvious issues? I can only guess it’s because they are not focused on their US stores and trying to figure out how to make it work elsewhere.
BTW does anyone have numbers on the Japanese stores?
Hillary and I noticed that once all the numbers settled in and proved themselves and the concept un-sustainable, the Snappy corporate lawyer, a number cruncher, Snappy employee and original officer of the company – beat feet this past spring….
And for those wondering about grounds for a lawsuit, the item on the front page of FranchisePick today (about Contours Express) should give them food for thought.
Different franchise, but awfully similar-sounding issues.
Bill if I understand what you were trying to say, I think this was mentioned in:
http://www.franchisepick.com/is-snappy-auctions-a-great-franchise-opportunity#comment-4305
Are you commenting on how most of the staff for Snappy HQ are no longer there? If so, that’s kinda old news. They were let go to make room for the new CEO who backed out when he figured out the real story about Snappy. Unfortunately for Snappy, they only kept the people who were Debbie’s buddies.
So who’s left?
FYI: For anyone following the Contours Express franchise dispute, the Contours Express franchise lawsuit document and the Contours Express franchise disclosure documents are available for download at the FranBest.com document library:
http://www.franbest.com/?page_id=323
To read the latest stories, click on Contours Express category in the right sidebar. Some eerie similarities.
If you have not read the above document about Contours Express — you need to! It hits too close to home for anyone who has owned an ebay drop off store!
Guys!!! I don’t know…I leave my Sinclair ZXspectrum for a few days and it all goes pear-shaped!
Sean – as some have guessed, corporate were there all along in the guise of R’sole or whatever name he was using, but I love your ever optimistic requests for positive facts, numbers, anything!?, every 50 posts or so. Nevertheless I suspect (even-handed as you always are) even you are beginning to realise er…there ‘ain’t none Floyd!
As for R, he’s pissing in the wind by blowing it out his arse, if everyone ignores him he’ll go away and we’ll get a new one! Can we have a girl this time?
Call me Tim aka Flat Broke had several good things to say (like…intelligent, pertinent stuff!), but having just read everything since the 10th I’m not going to go look for them all again, however as we say in the old country “Good work fella!”
One thing you touched on was the 10-versus-the rest debate, I’m sure we sort of realise by now that the top stores seem to go to/belong to friends of/staff at; corporate (in all these god-forsaken companies). Therefore if they suffer at the end, for the greater good of the masses below them – I won’t be shedding more than the odd crocodile tear.
But you guys got to get a lawsuit going, I know I’ve brought this up before but things are moving in that direction, and you’ll need to get assets frozen and stuff, early on or the lot will bleed south of the boarder
hay ho!
…Can we have a girl this time?
Hugh: you definitely have your moments. That made me laugh.
And now I know what a ZxSpectrum is. Hugh is educational too!
Welcome back Hugh, I always enjoy you!
Any updates on what Snappy is up to these days? Since their mandate to flood this blog with positive stories fizzled, their next “step” should be entertaining.
I heard 2 more stores closed. Anyone care to confirm or dispute?
Well – We’ve had Ralph (over on ‘Will Auctioning4u …’), RupertG and ‘R’, we need corporate to prove intellect by coming up with a Ruth or Rebbecka!
Trouble is – no imagination, “those who can; do, those who can’t; teach” … all the rest manage (unless they’re good at English in which case you’ll find them in the law!), managers have no imagination but incalculable greed!! and the ability to back-stab at Olympic levels. That’s why everyone at the top is a ’something something’ manager…Human Resources, Sales and Marketing., Software Functionality, Customer Feedback…etc…etc…ad.nauseum
Still – “acentuate the positive” – they’re easy to bait!!!
Well. I guess we “ran off” Rupertg. i.e. R., i.e. J. torse or wantsomecheesewithurwhine so I throw out the challenge again: SNAPPY STORE OWNERS, PROVE US WRONG!!!
Send us success stories about how you have been profitable month after month, how you’ve been able to pay down your debt pay yourself a living wage and how successful Snappy programs like S3 have been. Older non-corporate stores, here’s your chance, so speak up! Send us your numbers. You don’t have to tell us who you arer or where you are.
It’s getting boring being right all the time.
Harvard did an excellent report listing numerous case studies and recommendations for companies subjected to negative posts and attacks on the Internet. Also interesting for those trying to create change via blogs, etc. It’s a free download here:
http://franbest.tradepub.com/free/w_cymf03
Looks interesting but I can’t access it without a US based IP/URL. Could someone do a brief pracie of the three main types of behaviour and the suggested corporate response?
Awesome website Death. I don’t remember seeing a website dedicated to explaining the downfalls of owning an eBay drop off store. Great idea.
Awesome? Did you forget to put ‘Radical’, ‘Dude’ and ‘Surfs up’ in the above sentence?
A volcano is awesome, the birth of a child is awesome, a butterfly’s wings are awesome under a microscope, the strange majesty of the horror of 9/11 unfolding on our screens (your breakfast, our tea; real-time) was awesome, but – a blog? – is not awesome. Unless is has high-def scans of naked aliens!
And what do you mean by “Death”? Are you suggesting this site leads to death? Or would you have people believe the site is dying? Make yourself clear man. The above post might have made some sense (as sarcasm?) on another site with a link to this one, but as posted it just make you look like a retard.
See my comments on imagination/intellect at corporate level (above), it’s nice to be proved right!! Thanks.
R.
Thanks for your kind words. I am grateful for being able to give members of the franchise and eBay drop-off community a chance to get in off the street and have a hot meal. However, modesty prevents me from characterizing FranchisePick.Com as awesome.
Hugh is right. “Awesome” should be reserved for such wonders as the Green Prosperity Prayer Hankie. I invite each of you to get one of Don’s Green Prosperity Prayer Hankies and lay it over your Snappy Auctions franchise agreement.
You never know!
http://www.franchisepick.com/the-green-prosperity-hankie-will-make-you-rich/
Braise be!!
I see the need for a pink ‘Prosperity Hankie’ here in the UK, although, with only 9 items in ‘Fashion’, 66 items in Toymart and a still dead Amazon shop I think I’ll make them Pink Prosperity Blankets!
“Oh Lorrrd; won’t you buy meeee – a concept that works …My freinds all got day-jobs, but I think they’re Jerks!
My franchises are struglin’ they can’t make ends meeeet…
O’Oh Lorrrd won’t you buy me a pink… or… green… Sheeeet!”
Uh….guys….seems R. found this web site:
http://www.deathbyfranchise.com
I guess Uncle Joe can’t keep R. off the computer and I’m still waiting for him/her to contribute something….anything worthwhile. But, as Uncle Joe said, after spending hours on the Dungeons and Dragons web site, there’s not too many synapses firing, so he/she comes here to rant.
Good for the forum since the more he/she rants, the more traffic and the higher this site moves up on Google. So R……..rant away! You’re doing your part to help educate stores and potential franchisees.
Sorry Sean, I was making fun of Death by Franchise. Like there isn’t another website dedicated to how bad this industry has become?
Please get an original idea, or at least call it yourenottheonlyone dot org.
By the way, for the record…Sean, you should be quite proud of the amount of interest your site has gained, it is quite impressive.
I withdraw all comments above except for most of it and the other bits! If he’d done it as a link, or written it as one word??…still proves the point.
This is beginning to gather momentum as a story isn’t it?? the ‘death’ site is anonymous and a bit basic, but has useful links.
This is the most interesting;
http://www.wowt.com/news/headlines/2058021.html
as it deals with one smallish (by your standards) area, and seems to be talking about three or four independents, if they’re failing at that sort of rate, by the time you add the corporate stores you have a major failure, almost…..er…awesome, huh…R?
It seems we have a failure to communicate. At least the Snappy stores seem to have one on this site.
D Gordon must be shakin in her expensive boots. I heard there’s been another mandate about this blog and how stores have been told to manage their communications. If you’ve heard the same, speak up! I laff at their knees bent running around style…….NI!
Also, I read above where 2 more stores closed. Anyone know which ones they were located?
R. said: Sorry Sean, I was making fun of Death by Franchise….
R.: I missed the reference. My bad. I was all distracted thinking about my Green Prosperity Prayer Hankie which will make all these sites obsolete soon anyway. We’ll probably convert into a Prosperity Hankie testimonial site soon:
http://www.franchisepick.com/the-green-prosperity-hankie-will-make-you-rich/
I’m sending off for three so I will have three times as much financial luck as the rest of you…don’t tell the others or the hankies may run out!!