Comments on: Owner of Failed iSold It eBay Drop-off Franchise Leaves Apology

By: Dick Ji

Dick Ji — Mon, 24 Nov 2008 01:58:14 +0000

This is the dumbest franchise. People trying to make a quick buck. Now that more people are computer savvy, they know how to list items on ebay on there own and there is no need for these stupid franchise stores. Ebay is on the downslide, thanks to competiton like Craigslist.com where it is free to advertise and you can search for items both locally and nationally.

By: Owner of Failed iSold It eBay Drop-off Franchise Leaves Apology at PIGASYS

Owner of Failed iSold It eBay Drop-off Franchise Leaves Apology at PIGASYS — Mon, 23 Jul 2007 23:19:15 +0000

[...] Owner of Failed iSold It eBay Drop-off Franchise Leaves Apology According to a report at DailyProgress.com, all that’s left of the iSold It ebay-drop off store franchise in Charlottesville, VA is the iSold It sign, an empty storefront and, until recently, an apologetic note to customers from the store’s former owner. [...]

By: sean

sean — Mon, 23 Jul 2007 15:39:12 +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: links for 2007-07-22

links for 2007-07-22 — Sun, 22 Jul 2007 21:20:32 +0000

[...] Owner of Failed iSold It eBay Drop-off Franchise Leaves Apology gosh, guess when I said a few years ago that this business model wouldn’t be successful without a huge paradigm shift I was right – wish I hadn’t been (tags: Trading-Posts) [...]

By: michael webster

michael webster — Sun, 22 Jul 2007 14:19:46 +0000

Sean;
This concept was always a pile of crap -nobody had a proven system that had worked in the past for any period of time.
That these sold is testament to enduring relevance of Bob Purvin’s Book Franchise Fraud.

By: Mrteal

Mrteal — Sun, 22 Jul 2007 00:35:39 +0000

It appears to me that the owner has a lot to do with profitability in these drop off stores. Why would some of them be working and not the others?

I see these guys average $6,000 profit per month according to their website. I was not award a franchise could publish earnings like this?

http://www.letsfranchise.com/scripts/offer.php?code=GGL-CPCC0401-Franchise&offer=EAUCTI-001

eAuction Depot Difference: Once you reach typical monthly revenues ($40,000) your royalty flat fee ($1,200) ends up about 1/2 as much as some of our competitor’s royalty percentages (6% or $2,400). Highly successful franchisees can get a 1 year ROI (Return on Investment) from the start up costs. With our system, expect to earn an average of $6,000 profit and up per month after six months, based upon earning 35-40% commissions/shipping profits on $40,000 of total sales

By: sean

sean — Sat, 21 Jul 2007 23:28:35 +0000

hhcv: Very good points. Though I don’t think the problem is with “niche” franchise, but with, as you first indicated, franchises that have not stood the test of time.
As you point out, people buy franchises to “mitigate business risk with a proven system.” They pay a premium for that in the form of up-front and ongoing fees, and giving up autonomy. With a concept that’s still in the experimental stage, they get the burden of a franchise without the benefits. They are paying to be lab rats.
Thanks for your comment

By: hhcv

hhcv — Sat, 21 Jul 2007 22:40:25 +0000

This is most certainly a sorry state of affairs for both the franchisee and their customers. How very unfortunate.

One of the reasons people buy franchises, quite obviously, is to mitigate business risk with a proven system that has performed well over time. As with many of these clicks-and-mortar operations (such as iSold It), this track record is difficult to prove. In fact, many unsuspecting franchises are sold only on the future earning potential, rather than on the capacity of the business to provide a stable income right now.

I suppose the lesson here is that niche franchises, although quite unique, will often find it difficult to respond the changes in the market. Failure to respond undermines the sustainability of there franchises, and in the end, can cost people everything.

By: Owner of Failed iSold It eBay Drop-off Franchise Leaves Apology at PIGASYS

Owner of Failed iSold It eBay Drop-off Franchise Leaves Apology at PIGASYS — Sat, 21 Jul 2007 22:24:56 +0000

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