Comments on: iSold It Australia Franchise: eBay Plunder Down Under?

By: Robert Stephenson

Robert Stephenson — Mon, 23 Jul 2007 23:22:19 +0000

Yes, I opened a KIOSK store – which to me already seemed the best option, is cost structure, and I have been running it so I can gage possible incomes for would be owners. My own research and the study of how the KIOSK is functioning has helped my make significant changes to the original model. I not only read the reports about ISI, but I tested what I had before selling anything to franchisees. The drop off store model is full of holes and false promises. I have found that many of the claims and suggested business earnings stated by others haven’t actually been tested on the ground. I now, personally, know what will work and what just doesn’t.

It doesn’t mean the business is any easier, but it has caused me to adjust pricing and all associated fees to a level that fits with real earnings rather than, so called, projected earnings. There is a huge disparity between the two.

Honesty in this business is severely lacking, and the brochures are getting glossier and more forceful in the sell.

Robert

By: sean

sean — Mon, 23 Jul 2007 15:36:05 +0000

Interested in the eBay drop-off store franchise phenomenon? See list of all posts on the subject at our new Blogliography: eBay Drop-off Store Franchises

By: yowsers

yowsers — Mon, 23 Jul 2007 15:10:07 +0000

Development man,

Did you actually opened up a store? Or did you just do your researched and found it was unfeasable?

By: Development Man

Development Man — Wed, 11 Jul 2007 21:31:09 +0000

I own the master rights in Australia for Auction it Today, and have made comments here before. The whole drop-off store concept is a financial nightmare and after many, many months research I have discovered that these stores just can’t survive. I have tested the market in Australia – product sourcing, percentages, leases and wages and any drop off store, franchise or not, will struggle.

I have changed how AiT will work in Australia, and in one protest I have actually listed one of my units on ebay (auctionittoday-sak1) just to let people know what the alternative is and how my structure can create better and more solid returns for the franchisee. I don’t expect it to sell on ebay, then that isn’t why it’s listed.

Australian’s are drawn in by all the flash and money waving by ISI. I contacted the ACCC and FCA to discuss the failure of such businesses and was promplty told it is up to the buyer to self regulate. The flawed system wasn’t their concern, just so long as ISI paid their fees to the governing bodies.

Will I succeed in the new venture based on a redesign of the failing system. I hope so, it has cost me over $100 000 to get it right. And trust me, I really didn’t have that much to spare.

Time will tell, but unfortunately a lot of ISI owners will feel greatly let down when the promised dream turns out to be a nightmare.

By: Des Walsh

Des Walsh — Wed, 11 Jul 2007 01:06:04 +0000

Ah, Michael, WA – State of Excitement!

Maybe Burkey and J G can get them some government support? :)

By: Michael

Michael — Tue, 10 Jul 2007 16:54:06 +0000

I’m pretty gobsmacked to see we now have 3 stores opening in WA, all in the Perth metro area.
Cannot see them lasting.

By: Market Watcher

Market Watcher — Thu, 24 May 2007 04:51:41 +0000

I have watched the ebay drop off store market down under for several years, and though the concept is sound, the model and system of ISOLDit isn’t. The storesd that will open under this banner will struggle — not because of the concept but more because of the system itself. Look at the store costs and then look at percentage earnings and what needs to be earned to return to positve territory. factor in leases, services and staff (at least 3) then you have a recipe for disaster. The numbers just don’t add up. Australia will see these, so called franchise dreams close just as easily as the USA’s — but, they’ve got money to win over the masses and they quote US figures to support their claims, even though it is still unproven down under.

If anyone has proper press releases that are reliable I would certainly like to see them. I am planning a write up on the whole ebay store setup.

By: camera » Blog Archive » iSold It Australia Franchise: eBay Plunder Down Under?

Mon, 16 Apr 2007 23:47:37 +0000

[...] unknown wrote an interesting post today onHere’s a quick excerpt…in short order, hundreds of articles and news stories featured iSold It as the new ‘darling’ of the eBay world…. Today, with over 900 franchise stores under contract, iSold It has quickly become the World’s Favourite Drop-off Store. … [...]

By: Chance

Chance — Sun, 15 Apr 2007 17:17:14 +0000

Austrailia appears not to have much happening, and both stores in Ireland are closed, and the UK has left the others floundering in the wind.
The fact that they are selling ANY franchises with so many closings and the concept not working, does not show ANY good faith on the part of the franchisor or the area developers.
As for not selling them here, could it be that the mother company has UFOC violations and therefore can’t sell? The dozen or so staff members left at HQ will not be enough to support the “170″ stores they say are still operating. It doesn’t add up!

By: Des Walsh

Des Walsh — Sun, 15 Apr 2007 00:36:59 +0000

Fascinating to look at the Store Locations page on the Australian site – http://www.i-soldit.com.au/ It has markers for sixteen stores “opening soon”. Listed specifically are one store in Geelong, Victoria, evidently operating and one other, in Belmont, Western Australia, with location details and “opening soon”. Not exactly a stampede yet.