Franchise Pick

927 opinions for Is Snappy Auctions a Great Franchise Opportunity?

• Chance
  Apr 20, 2007 at 5:05 pm

  This is an interesting article, considering Snappy has had stores closing at the same rapid rate, and has even purchased some stores back. Their top store, is really 3 stores on one ebay id., so the nubers look great. And wind has it, from an reliable source, that Debbie will be soon be stepping down. It is also interesting that NONE of the top three franchisors is on the ebay live exhibitors list! Hmmmm…

• cookie
  Apr 21, 2007 at 6:01 am

  These stores will not work-processing time and costs, back-end work, inane customer questions, and lowered e-bay prices which cause seller anger, all combine to make this concept unworkable. B2B will not help much either. Franchised or not, the failure rate is incredibly high. DO NOT GET INTO ONE OF THESE STORES FROM ANY ASPECT.

• Jacob Maslow
  Apr 21, 2007 at 7:35 pm

  They closed down my snappy auctions store in Staten Island , NY. They actually told me in writing that I had no right to talk to other franchisees and was therefore terminating me for talking to other franchisees and insisting that they only talk to my lawyer. They did so without any notice and over a weekend to make it difficult for my lawyer to do anything.

  None of their other stores are doing well.

  Aside from the stores that closed down, many are trying to delay the inevitable while they are actively looking for buyers. Came across at least 4-5 including the CT store.

  Will be glad to talk to anyone who is considerig purchasing a Snappy Franchise.

  Interesting to note that their main store does not make any real money ddespite being open the longest. Why is Debbie so upbeat if the store that she personally owns is doing so poorly?

  Also, why does Debbie have so many negatives under her personal ebay id?

  Like nearly all of their stores, I never made it to the platinum level of powerseller (25,000 gross monthly ebay sales).

  I am now at the titanium level (over 150,000 Gross monthly). Took less than 6 months once I went out on my own.

  When I had the store about 40% of my sales were items I acquires on my own from thrift stores, business overstock etc. Snappy discouraged it.

  Since you only get about 30%, their 4% is a huge drain on profits and you get very little for your money.

• G.
  Apr 22, 2007 at 7:51 pm

  Good god Jacob - If you thought that doing $25k a month was going to make you any money, why the hell did you even bother opening? That’s the problem, opening a store where the average income per house is $45-50k.

  People will only bring you junk, because that’s all they have!

  People who own these stores need to get a clue, open them where there are people who need the service - not because it’s a cheap franchise to buy. These stores are closing because the idiots who buy them don’t have any idea how to run them. Doing $15k/month is only going to cause you to have a heart condition.

• FranBest.com
  Apr 23, 2007 at 6:49 am

  G. said: These stores are closing because the idiots who buy them don’t have any idea how to run them.
  G.: Isn’t that why they bought franchises, paid franchise fees & royalties? Most of the franchise sales literature says “no experience necessary.” Not being a seasoned business owner, and trusting supposedly credible national media, doesn’t make someone an idiot… just a candidate for a painful and expensive lesson.

• Chance
  Apr 23, 2007 at 8:55 am

  G. I think you will find that most franchisees are far from “idiots”. In fact, many have and still do own other successful businesses, or they would not have been able to afford buying into a franchise.

  The major problem here is that THE CONCEPT DOES NOT WORK, and that the “proven turnkey system” was misrepresented. Also, ask yourself why these franchisors aren’t buying back these stores if the promise of wealth is so great. I suspect you will find that these franchisors are quite aware that they DO NOT work.

  I understand that an average store using the top 5 franchises, during the 4 prime weeks of the year, still only grossed aproximately $24,000. The net on that, will NOT pay the rent. And remember that for every store that did better, one did worse. Actually, if you do the math, a $50,000 month will NOT pay the bills either. Check out the information at http://www.amitheonlyone.org, I am sure if you contact them they will run your numbers for you.

  G. if you have a magic wand that works in your business, why not share some of the winning concepts with all of us.

  A note on reselling these stores -the seller is now liable, and one more family is now brought into the realm of deceit, bankruptcy, and frustration. Can you sleep at night knowing you sold someone such a losing proposition. If you can, than perhaps you should go to work for the franchisor.

  PS: Jacob-Kudos to you on your new success, and I hope to meet you at ebay live!

• G.
  Apr 23, 2007 at 11:14 am

  Whereas I agree that you buy a franchise to be supported - you also buy one because you have a slight clue as to how to run a business.

• Chance
  Apr 24, 2007 at 3:53 pm

  Reread my post G!

• Bob
  May 2, 2007 at 6:56 pm

  Chance,

  I think G. was responding to FranBest.

  Let us know how Vegas goes!

• gardener
  May 5, 2007 at 8:17 am

  So, what do people think about Debby’s article on AuctionBytes?

  http://www.auctionbytes.com/cab/abn/y07/m05/i04/s05

• Chris
  May 5, 2007 at 10:39 am

  Hello,
  When you are dealing with business in an area that does not make money, then you cannot expect to make money at your store. The best thing I can say is use your mind. Open up a franchise at a place where the money is. Opening up a store in an area with high crime rate, no jobs, ect. Then you cannot expect anything there. Targeting places that are upclass rural areas, in big shopping centers, places that are very well advertised; Snappy will make it! You people that lost your franchise, it was your own fault, maybe not, but these aren’t just an average mickeydee’s down the road, this is an upclass business and you have to know how to keep it upclass. No offense to middle and lower class people, I am there myself, but targeting the higher class helps!! And you really need to have business skills before trying to open one, duh!~

• Jacob
  May 13, 2007 at 7:15 am

  I am doing quite well now that I no longer have anything to do with Snappy. I am now a titanium powerseller. To achieve titanium status, sales must be over 150,000 per month on ebay. My costs are a fraction of what it was and I am selling a lot more.

  Snappy made it difficult for me to operate. They actively discouraged me from purchasing my own items. At the time of my store’s closing, 40% of the items that I was selling was my own.

  I know a lot about ebay and have a good idea of what I am doing. Debbie Gordon and her team at snappy auctions does not have a clue.

  I had an expensive store (4300 per month rent) at a high traffic, affluent location. My average selling price was high but that included cars. Snappy takes 4% of the gross on the sale of a car, that leaves you with very little and it makes it hard to be competitive.

• Jacob
  May 13, 2007 at 7:26 am

  Snappy Auctions maintains that stores with high Average Selling Prices are doing well.

  Nothing is further from the truth. None of the stores are making any money. The ones that appear to be making money require a close exam. One store has two partners working full time for free. Despite the free labor, they are barely making it.

  The store in Connecticut had a high ASP. That reflects the fact that the owner bought off the inventory of a jewelry store that was closing. He would have been better off not owning a franchise as he would have been able to make a profit on the jewelry instead of sinking it in to the store.

  Now that the jewelry has been sold off, he is actively looking to sell his snappy auctions franchise.

  Many other snappy auctions are on life support and are only remaining open because owners are trying to sell the store rather than close it outright. They are unlikely to find buyers and these stores will end up closing as well.

  Debbie Gordon’s article is completely misleading. if you have any doubt and think she knows what she is doing check out the user id for the store she still owns and that started the franchise. The ebay user id for the company owned store is snappyauctions.

  Also keep in mind that their general counsel can and will close stores for arbitrary and capricious reasons including speaking with other franchisees about your concerns (he claims you are supposed to discuss it with him) as well as not returning his phone calls.

• Carlos
  May 13, 2007 at 8:49 pm

  99.9 % seems really good. looks like they do know what they are doing actually.

• Mad owner
  May 14, 2007 at 6:39 am

  Debbie has lost a lot of respect in the Nashville area. Her articles paint a rosy picture while the reality is bleak for store owners. The spin coming out of Snappy HQ would make a Washington PR firm proud. They qoute sucess rates, but these are based on 2-3 stores while ther remainder are barely breaking even. Also, Snappy has had 2, possibly 3 stores close in their home town of Nashville. The spin is only surpassed by Debbie’s ego….just talk to some of her ex-employees and ex-store owners. I smell a major lawsuit in the works.

• sean
  May 14, 2007 at 7:55 am

  Related posts:
  RE: Snappy Auctions
  http://www.franchisepick.com/former-franchisee-claims-snappy-auction-franchises-losing-money/
  RE: The Online Outpost:
  http://www.franchisepick.com/is-the-online-outpost-an-incredible-franchise-opportunity/

• Mad owner
  May 14, 2007 at 8:59 am

  Chris, I know for a fact that a Snappy Auctions franchise was opened in the 12th most affluent county in the USA and didn’t make it. Why not? Because the model is bogus. IF that market was such a hot market, why didn’t Snappy Auctions buy it back? Because they realize the model doesn’t work. They are willing to continue to sell the franchises and have also realized that their S3 model is bogus as well.

  Debbie Gordon is selling snake oil. BEWARE!!!

• chance
  May 15, 2007 at 8:51 pm

  The issues Ms. Gordon spoke of hold no merit. First because we have heard that she is stepping down. Second-she is not buying back these fabulous money makers(Cough-cough!) and Third the sales number on ALL of her stores do not reflect that any are breaking even- even the id that has 3 stores reporting as one id.

  The part that really urks me is that she is FULLY aware that this concept is not working, and that her franchisees are struggling, and filing for bankruptcy, and yet she continues to promote and sell these franchises. In some circles that is known as a snake oil salesman, I was taught it was a blatant lie!

  It is NOT the location, NOT the per capita income, NOT the business background of the franchisee that failed. It is the FRANCHISOR who misrepresented their “turnkey system”, and a bad untested CONCEPT, that failed!

  Check in at http://www.amitheonlyone.org for more information.

• Anon.
  May 17, 2007 at 8:14 pm

  From a VERY RELIABLE source: Debbie is NOT stepping down. Go Debbie!

• replier
  May 18, 2007 at 11:09 am

  Anon. Do you have Snappy Auctions Booth # @ Ebay Live? I would love to talk to the flagbearer of drop off stores in person.

• Get Real
  May 18, 2007 at 1:54 pm

  True, Debbie is not leaving. Mainly because the
  “new” CEO backed out. Debbie is still there, but a good portion of the previous staff is not.

• chance
  May 18, 2007 at 3:32 pm

  Basically Snappy has the same problems as everyone else!

  It is interestring how many, many, many franchisees have been gagged or threatened by the different franchisors. It is not surprising that people don’t hear the truth.

• Get Real
  May 18, 2007 at 8:04 pm

  Good point Chance. Snappy Auctions is still actively seeking new franchisors, but the existing franchisees are trying to sell theirs.

  According to trade publications, the guy (a well known tech investor/entrepaneur) who was supposed to take over and fund Snappy Auctions, backed out AFTER Debbie Gordon had announced he was coming in to take over. But, if you read her release after he left, everything is peachy.

  My guess is, when the whole house of cards comes crashing down, the franchisees will be the ones paying for it.

• chance
  May 18, 2007 at 8:40 pm

  Get real, you are SOOOOOO right. Unfortunetly, the franchisees are already paying for it thru bankruptcy, divorce, and hospital visits. And the franchisor just keeps on selling those franchises. Not one has a system that works, so WHY??? do people still buy into their bull? There is enough info out here on the net to show that THE CONCEPT DOES NOT WORK (even in wealthy areas)! I challege any store to show their financials for three months of consecutive profitablity (including paying back a loan or startup fees, and the owner that works for free). Better yet-just show me breakeven!

• Anon.
  May 19, 2007 at 11:55 am

  Maybe you’re right. It will not work. Maybe Debbie should just admit it and give all those people their money back……..NAAAAAAAH!

• BEENHAD
  May 22, 2007 at 7:44 pm

  This ponzi scheme sounds exactly like The UPS Store franchise. 60% of The UPS Store Franchisee owners don’t make a dime! For more information, please visit http://www.thebrownboard.com or http://www.talkbrown.com

• Anon.
  May 25, 2007 at 2:45 pm

  I disagree with you. Debbie does rock! It’s not her fault the concept doesn’t work. Those darned customers just won’t do what she says they will do.

  Bad customers, bad bad!!

  What’s more important: building the franchise or building successful stores?!?!?!

  Debbie, I know a bunch of people who are just waiting on pins and needles for your call to buy back their stores…..a bunch!

• Get Real
  May 29, 2007 at 2:35 pm

  Dudda dum dum dum…another one bites the dust….dudda dum dum dum…another one bites the dust…and another Snappy gone and another Snappy gone….another one bites the dust…..hey they’ll rip you off too…another one bites the dust…. or several more should I say

• Susan
  May 30, 2007 at 2:01 pm

  Snappy just closed in my town. I want to open up a store. Do I need to have a franchise or can I open a store without a franchise such as Snappy.

• sean
  May 30, 2007 at 2:30 pm

  Oh boy…

• chance
  May 30, 2007 at 3:11 pm

  Susan:
  Contact the folks at http://www.amitheonlyone.org, and they will give you information on ebay drop off stores, franchised or independant. Take the time to read the info on their site and ask questions BEFORE you make the plunge.
  PS you might want to read Franchise picks article http://franchisepick.com/isold-it-american-dream-or-franchise-nightmare/

• chance
  May 30, 2007 at 3:16 pm

  Susan here is another great link with plenty of comments by store owners…
  http://www.franchisepick.com/is-isoldit-a-great-franchise-opportunity/

  Yes Sean, what is it that people don’t get?!

• sean
  May 30, 2007 at 4:04 pm

  No comment.

  Thanks for answering, Chance.

• Get Real
  Jun 1, 2007 at 8:42 am

  Susan, where are you located?

• Get Real
  Jun 13, 2007 at 1:09 pm

  Woooo hoooooo….Susan…….where are you??????

• Un-Snapped
  Jun 14, 2007 at 1:44 pm

  Well, after a year in the Snappy family we have gone belly-up. - oh, well - $100k down the drain….unless of course, someone wants to buy me out?? any takers????

  Oh, and a gem of wisdom from the Franchise Conference Call held every other week -

  “Marketing is the key to success in this business…” - Debbie

  2 weeks later the Marketing person they hired, is un-ceremoniously fired and never replaced - maybe marketing isn’t important anymore….

• sean
  Jun 14, 2007 at 3:02 pm

  Unsnapped: Sorry to hear it.

• BEENHAD
  Jun 14, 2007 at 3:07 pm

  Sounds like The UPS Store franchise. It’s never disclosed that your LARGEST competitor is actually UPS! beware, The UPS Store franchise is a complete scam!!! For more information, visit http://www.talkbrown.com

• Un_Snapped
  Jun 14, 2007 at 4:22 pm

  NO, UPS is not a factor - why do you think that??

  It’s the commission, the lease, and the “good stuff” that you get in. People just walk out when you tell them they get only 57% max back (in their minds this means 50%), + $4000. per month lease + when they bring in granda ma’s dishes to sell for $30. - that’s what kills you.

  If everything you got in would sell for $500. (maximizing profit) - this would be a FANTASTIC business. Unfortunately, it isn’t….

  Another Debbie Gordon quote - ” Welcome our NEW CEO…”

  Next week no mention of him - he RAN FAST AND FAR!!!!

• sean
  Jun 14, 2007 at 4:49 pm

  Un_Snapped: I think BEENHAD meant the franchisors (Snappy Auctions & The UPS Store) were similar in how they treat their franchisees… not that UPS figured into your store economics.

  Click the UPS category in the sidebar to read of their difficulties.

• chance
  Jun 14, 2007 at 8:09 pm

  Hi Un-Snapped! The UPS stores were Mailboxes etc, and a major part of their problems are from growing too fast and over saturation (by franchisors who only cared about making money from the sale of the franchise, not in helping the stores survive). Interestlingly one of the fellows who helped bring about the problems with UPS, is the same idiot who brought about the demise of at least one ebay drop off chain - your competitor! All of the franchisors have avoided dealing with the truth about the concept not working, and show a lack of responsibility on their part in helping the closing franchisees. First they wouild have to admit there IS a problem, as their stores go belly up one by one, and that is unlikely. Marketing isn’t the answer either! Check out the site http://www.amitheonlyone.org , and make sure you are closing legally and CYA.

• Robert
  Jun 15, 2007 at 1:54 pm

  I suspect that had more drop-off store owners worked as an independent TAs, they would have quickly seen this model could not work at a retail level.

  I’ve been an independent TA since 1999 and was very bearish on the idea of DO stores making it. What client in their right mind would hand over 30 to 50% of their items value to someone else just for selling it? IMO, a DO will attract clients with a pawn-shop mentality who only have junk to sell. People with desirable merchandise won’t accept such a steep commission. They’d sooner keep the item or give it way for a tax write-off (at the marginal rate, I might add) rather than pay upwards 50% for a DO to sell it.

  When I sell for others in my TA business, I charge a flat hourly labor rate plus actual ebay/paypal fees regardless of the selling price. That way, the effective percent is quite low for higher dollar items. Clients don’t mind that as much. But then I work from my home where virtually all my fixed costs already existed.

  [ED. NOTE: TA = eBay Trading Assistant]

• Get Real
  Jun 15, 2007 at 3:01 pm

  Un-snapped, I think we’re members of a large group of Snappy victims show should consider a class action lawsuit.

  Many stores do not listen to the store calls since the spin coming out of Debbie can give you vertigo.

• Bill Clinton
  Jun 19, 2007 at 4:57 am

  Now that I have alot of time on my hands, I noticed that the much vaunted, corporate owned, high-volume (performed better than the rest of us, profitable - doubt it…) Manhatten (NY, NY) store (ebay id=snappyauctions5) just vanished overnite.
  Until one of you out there opens up another metro ebay drop-off store to replace the deep void caused by Snappy Auctions closing in the dark, I just have one question - where will Hillary get her Jimmy Choo’s ?

• Regular Joe
  Jun 21, 2007 at 12:18 pm

  Un-snapped….sorry to hear of your situation. I’m in the exact same boat. I have lost a heck of a lot more….maybe we can compare stories sometime!

• Power Seller #1
  Jun 22, 2007 at 6:51 am

  Seriously, are there any stores that make money. Or was this one big scam?

• Me Too
  Jun 22, 2007 at 11:09 am

  I too have been a major victim of Snappy Auctions and have lost virtually everything I had. My attorneys know that Debbie and her team have committed serious crimes across the country and would love to file a class action suit against them if they only knew that there were enough assets to make it worthwhile. If anyone has any inside information about Debbie’s net worth, it sure would be nice to turn this nightmare into something positive for all the Snappy Victims.

• chance
  Jun 22, 2007 at 12:04 pm

  “Me Too” I strongly suggest you and others contact Karen and Gene at http://www.amitheonlyone.org who are familiar with the legal issues surrounding these stores, and have a network of franchisees across the board to put you together with.

  Powerseller #1- Good guess NONE of these stores are making a profit on any consistant basis, if at all!

• sean
  Jun 22, 2007 at 12:15 pm

  Me Too: See related post at With a Flawed Concept, Franchise Failure Takes a Heavy Toll.

  There’s a link to a video interview with Karen & Gene about what others are going through.

• Me Too
  Jun 23, 2007 at 6:04 pm

  Thank you both for the advice. I have seen Karen and Gene’s video and I will definitely get in touch with them. In case you haven’t heard, as of Friday, June 22nd, Debbie has now closed another Nashville store (Bellevue) — one of the corporate owned stores that she stole from a franchisee last year using threats, intimidation and the same illegal acts they she and her posse have been allowed to get away with for more than 3 years. Basically, no matter how she misrepresents herself and her company as a profitable business model, as Anon. hinted at, she has never had any intention to support the franchisees or the success of their stores. The events that I have personally experienced and the ones that I am now finding out about prove that her only purpose has been to feed her huge ego by surrounding herself with “yes” people with the same lack of integrity and character that she exhibits in order to pillage innocent franchisees in order to line her own pockets. Having a forum such as this and people like Karen and Gene is extremely helpful in getting all of our stories out in the open. I certainly hope that other disenchanted and injured franchisees will come forward to explore the possibility of retribution for Debbie and perhaps some measure of justice for the egregious injustices committed against all the franchisees.

• Get Real
  Jun 23, 2007 at 6:57 pm

  Well, if someone is going to take the class action suite forward, please count me in. I lost my life savings and have heavy loans to cover. I also face serious physical issues my doctor says are due to this whole episode.

  If anyone has experience with a class actiion suit or knows a good lawyer to handle it, pipe in. You’ll be in good company.

  Oh and by the way, someone told me Snappy also closed the Manhatten store as well.

• Un-Snapped
  Jun 28, 2007 at 8:41 am

  Yep, count me in, too.

• R. Lester
  Jun 28, 2007 at 12:46 pm

  i would be interested. I have lost significant funds in this venture of broken promises. Would we go after the corporation or Debbie and her husband? My kids will now have to take loans for college. Hers should do the same. Those are my thoughts.

• Get Real
  Jun 28, 2007 at 3:19 pm

  To my knowledge, Debbie is not married, so the only way you can get anything out of her that will affect her is to make her admit failure and that would take an act of congress.

• In denial
  Jul 16, 2007 at 7:47 am

  Snappy Auctions is in the strongest position it has been in since it’s start. Yes a few stores have closed, and yes lives have been ruined, but that is normal for a new franchise and I’m willing to accept that as part of my success.

  I see Snappy Auctions as the leading Ebay dropoff store franchise out there and see a strong future.

  Of course, I also believe in the Easter Bunny, Santa Claus and my ability to tell the truth.
  - Debbie

  Ed. Note: Our sophisticated identity verification software (which we purchased on eBay) indicates that this post may not, in fact, have been made by Debbie Gordon, CEO of Snappy Auctions. Nor the Easter Bunny.

• Get Real
  Jul 17, 2007 at 5:40 am

  Duh……
  She’s too busy fending off lawsuits.
  Kudos to the author!

• chance
  Jul 17, 2007 at 8:17 pm

  Sounds like a message sent to her franchisees, (who were gracious enough to share it here). Full of hipe! And yes she is following in the steps of the leading drop off franchisors…right to litigation and financial failure. And TRUTH, well truth is that franchisees are losing their businesses, homes, families, friends and health in her wake.
  And since when is the easter bunny not real?!

• Un-Snapped
  Jul 19, 2007 at 7:41 am

  HERE WE GO!!! THE END IS NEAR (HERE??)

  For two weeks now snappy corporate has NOT sent consigners their checks (or delayed them). They claim “..an accounting error..”, but never informed their franchisees about the delays. The franchisees found out when customers started calling and complaining.

  I pity the franchise owners that have large payouts when they finally decide to bankrupt and leave them all hanging with very pissed off consigners!!

• Get Real
  Jul 19, 2007 at 10:45 am

  This is another example of how Snappy lays blame on anyone but themselves. Last summer their software was down for a month. They blamed on someone else. Never mind they lack the IT knowledge to make sure their site was backed up and secure.

  It was someone elses fault!!

  They even tried to force their consignors to sign releases saying they wouldn’t sue because of the downtime.

  Oh yeah…they DID hit the stores bank accounts for the money. They made sure of that.

• sean
  Jul 19, 2007 at 10:49 am

  Snappy Auctions corporate sends the consigners their checks? Is this how the other drop-off FRs do it also? (I thought an article about the failed iSold It franchisee in MI has the store owners responsible for paying their customers)
  Does this mean that if the Franchisor goes under, Franchisees might have to face local consignees whose stuff was sold but never got paid?

• In Denial
  Jul 19, 2007 at 10:53 am

  This not Debbie or even the Easter Bunny, but a realstic portrayal of Debbie Gordon.

  The emperor clothes look fabulous! I’m from the IRS and I’m here to help you. The checks in the mail. Snappy Auctions is very much alive and kicking. The earth is flat. Elvis is alive and working for Snappy HQ as our janitor. 2 plus 2 equals 5. I am not a criminal. Trust me. We didn’t let staff go…they quit.

  Why don’t you belieeeeeve me?!?!?!

  Signed, Debby (not the real Debbie but an amazing simulation. Kinda like 1964)

• Get Real
  Jul 19, 2007 at 10:57 am

  Yes. They hit the franchisor’s bank account and then send out the checks. The fun fact is they charge a fine to stores if they don’t approve the checks by a certain date, but they can send out the checks whenever they please.

  Sounds like a double standard doesn’t it??

• chance
  Jul 19, 2007 at 11:09 am

  Sean: You are dead on! Scary isn’t it. Isoldit does the same thing. They can go in and out of the franchisees bank accounts, and no one can balance anything. To add to it, they charge for doing it. What most franchisees don’t know is that deep in the backoffice of their paypal accounts, their information is being sent to corporate. And guess who is held liable to the consignors-the franchisee! Add to that, one CEO who told consignors that the store was abscounding with their goods and money, and sent them to the franchisees personal address. This is only ONE little issue, amongst many. As I said, SCARY!

• sean
  Jul 23, 2007 at 8:43 am

  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

• Get Real
  Jul 25, 2007 at 6:39 am

  Seems there was a big fuss at Snappy HQ about an email that was sent out to all the stores that talked about the AmItheonlyone.org site.

  I wonder how many stores are taking a hard look at what they’re doing. A lot…I hope.

• sean
  Jul 25, 2007 at 9:49 am

  Who sent the email? What’d it say? It didn’t mention FranchisePick.Com? After all, we’re the one with comments on Snappy from Bill Clinton, Regular Joe and Debby’s stand-in.

• chance
  Jul 25, 2007 at 12:41 pm

  You are never forgotton Sean, I am sure that AmITheOnlyOne.Org linked it back to you. It seems that Snappy is facing the same fate as isoldit and Quikdrop, a multitude of stores closing. The shameful thing is that these franchisors are ALL still selling franchises knowing that it does not work (as evidenced by the momentum of closing stores). It doesn’t speak well of the franhisors either.

• sean
  Jul 25, 2007 at 4:47 pm

  Chance: It doesn’t speak well of any franchisee who would sign up from here on out, does it? Don’t you think a minimal amount of due diligence would uncover the widespread problems? Like… the new iSold It franchise just opened in Hesperia, CA?

  Story Link

• Get Real
  Jul 27, 2007 at 6:52 am

  Well the storm over the recent email to Snappy stores continues to brew. Snappy store owners now have access to AmITheOnlyOne.Org and they are asking a lot of questions. Of course, Debbie will probably deny it all and will the accusations will fly.

  This is GREAT because now the RIGHT questions will be asked and people who were wondering what they did wrong will realize the did very little wrong except to buy into a flawed concept whose time has already come and gone.

  Strap in. It’s going to be a bumpy ride!!

• mike
  Jul 28, 2007 at 7:00 pm

  Let me say that the Snappy Auctions in my home town is a joke. I took over 5 sets of golf clubs in there and my experience was terrible. All of my checks were delayed and they listed them dirty. They claimed they would clean them up because that’s what they do. Then I noticed that one of my sets didn’t get listed. After waiting a few weeks I emailed the manager and got a reply that she quit and there was a communication problem. They forgot to list some of my clubs and they were sitting in the back of the store. They also have gone to 38% commission which to me is excessive. They are not worth the money. Many of my auctions brought less than similar items. I recently went to their auction page and they only had 8 items listed with nothing over a hundred bucks. It’s only a matter of time. I will be happy when they leave town.

• Get Real
  Jul 29, 2007 at 1:30 pm

  So Mike, where is your home town? Maybe we should add them to the list of stores who need to know more about amitheonlyone.org so they can learn how to shut down their store before they lose too much.

  It’s too bad store owners have to go to another web site to learn about how to shut down since Snappy won’t help them. I’ve heard from stores who have shut down or are int he process of shutting down and their comments on support from Snappy highlight how Snappy pretty much blows them off.

• Hugh Walter
  Jul 29, 2007 at 6:02 pm

  Having given this whole thing some thought in the last few weeks, I’ve come to the conclusion, we are all at the beginning of the end (to paraphrase Churchill!) of a South-sea/Dutch-bulb type bubble of pure hype. I say ‘we’ because I fell for it too, and I consider myself to be a bright intelligent sort of chap.

  The maths seems simple, why did no one work it out when we all started thinking “hey, I/We/someone could make money selling other peoples stuff on ebay using high-street/retail park drop-shops”?

  Lets assume for the sake of argument that over any given period, the average ‘profit’ of an eBay item (from all the millions posted on all the National ebays, high end to 99p [50c]) is 60c U.S. (this figure may be available somewhere - I can’t be arsed to look!). Lets also asume that there is a ‘fixed’ or average cost to running an average store - anywhere in the world……costs include premises rent, stationary and materials, wages for two part time Lister/Shippers, and dinner for the propriators, a nice couple with just enough in the bank to start a little business now the kids have left school. They only pay themselves with dinner at the end of the month, because their overheads are at the limit, and they plough as much as possible back into the business.

  Now lets assume that their costs are $600 per month, and they are selling the equivalent of the 1,000 items with an average 60c profit needed.

  If they decide to open another store nearby, their overheads will more than double (because they will have to pay the new proprietors, as well as two part-timers, while the profit per item will not change. Add to that the fact that the two stores can now only attract equivalent of 900 average items because they are in each others shadow/footprint, and it suddenly becomes obvious this concept was never going to work.

  Never, ever, not in a million years, not with any number of store’s over one, working really hard. No - don’t argue, it was never, ever ever…EVER going to work.

  The final rub - this wasn’t a misguided nice elderly couple, this was Thatcherite-Raganomic Free Market MBA capitalist Gordon Gecko type, predominantly male, money grabbing, immoral, amoral, selfish, sociopathic empathy-dead swine.

  They sold us the dreams, the visions, the ‘concepts’, and in a desperate search for a fast buck some of them are continuing to do so. They have huge PR and marketing suits, their own (often disguised) ‘Blog’ sites, Wall Street/City funding and the ear of a complacent or apathetic media looking for half a story to fill the inside pages, financial pull-outs or Sunday supplements.

  Get out now, go independent and specialise in something you know (Christian Braun - CEO of Auctioning4u seems to be preparing to do just that with ‘Toymart’). If the law allows in your country/region sue the bast**ds, sue them for misrepresentation, sue them for fraud, sue them for being very naughty! Maybe we will get them all in jail, for their own protection before they’re lynched!!!

• Hugh Walter
  Jul 29, 2007 at 7:20 pm

  Or…..What about suing the investors/VC’s/Angels for not properly auditing/ensuring the long term viability of the ’scams’ they are propping up?

• sean
  Jul 30, 2007 at 6:01 am

  Many of the U.S. franchisors have mandatory arbitration clauses. In the case of the couple at amitheonlyone.org, they allegedly didn’t have funds to pay their share of the arbitration, so they were out. In a recent case with The Coffee Beanery, the arbitrator sided with the FR. The franchisees seem to have some valid complaints that the arbitrator had a professional relationship with the FR and the ruling was contrary to law (lots of info on BlueMauMau.org on this).

  In the end, the franchisor organizations of young franchisors are new corporations with little or no assets. The UFOC and FAs are heavily, heavily weighted in favor of the franchisors and failed franchisees are generally drained both emotionally and financially and generally go away quietly (at least before they started learning to use the Internet).

  When you consider the loss and anguish that this many failed businesses can cause, there’s not much of an outcry other than on a few select blogs (like this one). Why’s that? Franchisors have learned the art of the “gag order” quite effectively. In a good franchise organization, that’s a positive thing that protects the brand that is everyone’s shared asset. In a bad franchise, it’s an effective way to disable the alarm bell that could warn the next wave of suckers, I mean, franchise owners.

  Hugh, take another look at the Cold Stone Bowl of Cereality post. The CEO states directly that the first 50 units of a franchise are high risk, lots of trial and error. He then states that they’ll be expanding only through franchising (obviously passing on the risk to bright eyed “cerealogists” Trix are obviously not only for kids.) Those who sell new, unproven concepts often know exactly what they’re doing, are very good at it, and have their bases covered.

  I think what would make this tough to litigate would be the obviously experimental, unproven nature of the concept overall. Can eBay Drop-off franchisees really claim they didn’t know that selling people’s stuff on eBay via a storefront was unproven in the marketplace?

• Get Real
  Jul 30, 2007 at 6:47 am

  In the case of Snappy Auctions, the claim was break even in 6-8 weeks (it is in print in an article), so the franchisees could see this as a proven and tested program.

• Hugh Walter
  Jul 30, 2007 at 11:45 am

  I See - over here some of the clauses would be considered illegal or ‘unfair’ and therefore inadmissible in court. However the governing class have made access to justice very difficult for almost anyone who’s earnings aren’t way above average.

  You guys however have the benefit of Class Action litigation which we don’t? I’m thinking maybe a bunch of you could get together and do something. Sometimes threatening to sue the Government (federal?) Department responsible for policing/overseeing the relevant industry, gets quicker results than chasing the crooks who run the businesses?

  As you’re probably aware, I refused to sign the gagging order! losing the chance of £1,200′ish, but posting the blogs I have has been worth every penny!

• Get Real
  Jul 30, 2007 at 12:34 pm

  Antoher lesson about our legal system: class action suits only occur when the “deep pockets” situation is in place and Snappy is not a public company with published financials so finding an attorney would be difficult, but possible.

  Believe it or not, Debbie is not the most popular person around and there is probably a good lawyer who would take this on just to make her mad.

  Yooo hooo! Lawyer person!?!?!?!

• Max Reger
  Jul 30, 2007 at 3:58 pm

  I just got this notice about a new publication concerning due diligence for franchising. What is so funny is that John Heacock of Snappy Auctions and Ken Sully of Isoldit are listed among the contributors. Talk about letting the rabid foxes into the henhouse!

  July 30, 2007 07:10 AM Eastern Daylight Time
  New Guide Demystifies the Franchising Industry
  DUBLIN, Ireland–(BUSINESS WIRE)–Research and Markets (http://www.researchandmarkets.com/reports/c64207) has announced the addition of Due Diligence Into The Franchise Industry: How To Become Your Own Boss to their offering.

  Many people look at franchising as a way to be their own boss and freedom from the restrictions of corporate life. However, most do not have a clear understanding of what goes into running a franchise or the rigorous selection and startup processes. Aimed at new franchise purchasers, this report addresses key issues such as how to select a franchise, as well as what franchisees need to know once they have applied.

  The report includes a variety of industries in the franchising world and interviews with some of the top executives in those industries. The report offers the opportunity for these company executives to speak directly to the people who are looking to purchase a franchise, and it helps them communicate to potential franchisees exactly what they are looking for.

  This report features interviews with leading authorities and executives from franchises and associations such as:

  -Matthew Shay, President, International Franchise Association

  -Jeff Snyder, Regional Co-Owner, Re/Max of New Jersey

  -Mitchell Moore, Director of Business Development, Nestle Toll House Cafe

  -Brig Sorber, President, Two Men and a Truck

  -Ted Beamen, Vice President Business Development, Boston Pizza Restaurants L.P.

  -Jon D. Kennedy, Senior V.P. of Franchise Development, AmericInn International, LLC

  Some of the issues discussed include:

  -Franchisee financial commitment

  -Training provided by franchisor

  -Territory exclusivity

  -Marketing budgets

  -Assessing litigation between franchisee and franchisor

  -Real estate management issues

  -Control of franchisees by franchisor

  -Freedom to choose vendors

  -Calculation of royalties

  -Negotiating royalties

  -Dispute resolution

  -Exiting the franchise / liquidity options

  I. Introduction To Readers

  II: Matthew R. Shay, President, International Franchise Association

  III: Ross Almo, Executive Director, Econo Lodge Franchisee Association

  IV: David Asarnow, President and CEO, CLIX

  V: Ted Beamen, Vice President Business Development, Boston Pizza Restaurants L.P.

  VI: Gayle Becker, Vice President Franchise Development, TruePresence

  VII: Lori Kiser-Block, President, FranChoice, Inc.

  VIII: James L. Courtney, Senior Director Market Development, USA Baby, Inc.

  IX: Kyla Duffy, Chief Operating Officer, Bits, Bytes, & Bots

  X: Kent Feazell, Senior Vice President of Development, Express Oil Change & Service

  Center, LLC,

  XI: Jarrod Fisher, Vice President Franchise Sales, World Properties International

  XII: John W. Heacock, General Counsel / C.O.O., Snappy Auctions

  XIII: Harold J. Hill, President and CEO, Bad Ass Coffee Company of Hawaii, Inc.

  XIV: Jennifer Jackenthal, Founder and President, My Girlfriend’s Kitchen

  XV: Margaret Jacks, Vice President International Development, Sandler Systems Inc.

  XVI: Jon D. Kennedy, Senior V.P. of Franchise Development, AmericInn International, LLC.

  XVII: Giorgio Kolaj, Co-Founder and Executive Vice President, Famous Famiglia

  XVIII: Patrick Maslyn, Partner, Latham & Watkins

  XIX: Mitchell Moore, Director of Business Development, Nestle Toll House Café

  XX: Truly Nolen, Director of Franchise Development, Truly Nolen of America Inc.

  XXI: David Di Orio & John P. Nuzzo, Independent Franchise Owners, It’s A Grind Coffee House

  XXII: Tip C. Powers, President, Realty Direct Franchise Corporation

  XXIII: Steven A. Rosen, Chairman and CEO, FRANNET: The Franchise Consultants

  XXIV: Ken Rubin, CEO, Xact Natural Pest

  XXV: Lily Sarafan, Chief Operating Officer, Home Care Assistance, Inc.

  XXVI: Bruce S. Schaeffer, Founder and President, Franchise Valuations Ltd.

  XXVII: Adam Schectman, Director of Franchise Development, Advanced Realty Solutions Inc.

  XXVIII: Larry Simpson, Director of Franchise Development, Postal Annex

  XXIX: Jeff Snyder, Regional Co-Owner, Re/Max of New Jersey

  XXX: Brig Sorber, President, Two Men and a Truck

  XXXI: Kenneth C. Sully, President and CEO, iSold It, LLC

  XXXII: Jan Van Blarcum, Founder, Creative Tutors

  XXXIII: Synopsis of United Franchise Offering Circular

  XXXIV: Additional Resources

  For more information visit http://www.researchandmarkets.com/reports/c64207

  Contacts
  Research and Markets
  Laura Wood, Senior Manager
  Fax: +353 1 4100 980
  press@researchandmarkets.com

  Sharing Sharing
  These links help you add this release to websites on which you can save or share bookmarks. Diggdel.icio.usNewsvineReddit
  Print this Release

• sean
  Jul 30, 2007 at 4:27 pm

  Max: They’re certainly experts.

• Chance
  Jul 30, 2007 at 6:20 pm

  The question Sean is “At what???” How to sell a franchise concept that doesn’t work!!! And add Larry Simpson to the tall order, considering he sold 1/2 of the US the Isoldit stores(most of which are now closed or bankrupt). Even more interesting is that this publication is in the UK (you know where Isoldit went belly up!)

• Get Real
  Jul 30, 2007 at 6:37 pm

  Just as an FYI, John Heacock is no longer with Snappy Auctions. He was let go by Debbie Gordon when she made her announcement of the new CEO that never happened. You never know. He might turn out to be a help to franchisors. I doubt there is much “love” between him and Debbie Gordon.

• Number Cruncher
  Jul 30, 2007 at 9:59 pm

  Well folks, I did some number crunching using Terapeak and after a random sampling of 30 Snappy Auction stores ( including the 4 highest selling stores), guess what the average monthly sales are for the last 3 months: $13,867 - GROSS!!!!

  After your selling fees and Snappy’s cut that’s about $3500 a month margin. THAT’S THE AVERAGE FOR 30 STORES!!!! I am AMAZED they are still open.

  PEOPLE OF SNAPPY!!! WAKE UP. Smell the coffee. RUN AWAY WHILE YOU CAN!!!!!

• Hugh Walter
  Jul 31, 2007 at 2:07 am

  Nothing wrong with ex-employees telling it how it is!!!

• Number cruncher
  Jul 31, 2007 at 8:57 am

  OK…the final numbers are in. I ran 90 day sales numbers on ALL the Snappy stores (using eBay numbers that are NOT proprietary) and it’s worse than I thought.

  The average monthly sales for the last 90 days for all Snappy stores is: $12,608 and this is further exacerbated by the fact that the average highest single sale for all stores is $3687. This means if you take out the highest and lowest sales, with the highest most likely non-prepeating items, the average store is selling $8921 per month (gross).

  Average sales price is $135 so Debbie’s claims that higher average selling price is the key does not hold water. You need a LOT of these items to stay alive.

  How the HELL do you survive off those kinds of sales????

  Debbie, time to fess up. It’s only working in about 3 locations and they all have the same demographic: lots of old money. Nowhere else seems to work.

  Anyone can access this sales info. I’m doing the same thing on ISoldit stores and it’s not any better.

• Regular Joe
  Jul 31, 2007 at 9:21 am

  You don’t survive on those numbers! That’s why we’re out of business. All we ever heard from corporate was “stop taking items that aren’t going to sell for more the $50″ “spend more money on marketing and advertising”..with commission of 38%no one wants to sell their stuff with a store!! Summer months were usually slow anyway. We dreaded August! Nobody buying on eBay and no one around to bring it in. We would have been better off closing the store for a month.
  I don’t see how these other stores are surving by only listing 10-15 items at a time…even if that stuff sells for more than $50, it can’t cover the overhead.

• R.
  Jul 31, 2007 at 10:53 am

  Hey Numbers genius, do you know what area Terapeak doesn’t grab? Now add in that information and the numbers should improve for these stores. If you don’t know what I’m referring to then you should stop this ridiculous waste of my time.

• Get Real
  Jul 31, 2007 at 12:31 pm

  Joe, if you don’t mind me asking, where was your Snappy store?

  Ed. note: I’d caution people from identifying their stores publicly on this forum. The folks at amitheonlyone.org could act as intermediaries if you want to connect through them.

• Get Real
  Jul 31, 2007 at 1:17 pm

  Well R. I confirmed the numbers with some stores and they’re pretty close. Why don’t you just tell us what you think is different instead of mothing off.

  Even if they improved 100% the stores would STILL be losing money!!

• Number cruncher
  Jul 31, 2007 at 1:20 pm

  Ooooh guess what! The numbers from Terapeak are HIGHER then eBay!!! I just confirmed it.

  Retort?????

• Bill Clinton
  Jul 31, 2007 at 2:00 pm

  re: R.
  Jul 31, 2007 at 10:53 am

  The James Bond series of novels and films have a plethora of allies and villains. Bond’s superiors and other officers of the British Secret Service are generally known by letters, such as M and Q. (and now ‘R’ from Snappy HQ in Nashville)…..

• Ben Rippedoff
  Jul 31, 2007 at 2:13 pm

  But they’re the “bad” guys so they should have names like Sphincter (Spector) or Clueless (Chaos) or THE BACKRUPTOR or maybe The Gordon Gang.

• Chance
  Jul 31, 2007 at 2:53 pm

  Interesting numbers, did you also divide the “Top” Store’s numbers by 3, considering the fact that 3 stores are reporting on one id and the owner has deep pockets. None of the other franchises are doing any better! So, WHY??? are people still buying these stores?

• Hugh Walter
  Jul 31, 2007 at 4:52 pm

  Bill - they’re not the only ones, but Auctioning4u could only get it down to 4 letters; Ptom?!

  Chance - they’re still buying because no matter how hard we try here, the National media on both sides of the pond, in Australia and the rest of Europe (this chaos is happening in Germany, Holland and - I believe - Italy?) would rather lead with some dumb ‘celebrity’s’ tit-job, a great white shark several miles off Cornwall or Christ’s face in a piece of toast/window blind/bowl of porridge etc…

  I’m now sending these links to anyone in authority I can find an email for and will raise this (massive news) story with the BBC, who - being only a mile down the road from A4U - have used CB’s baby to illustrate a lot of the eBay stories they’ve had in the last two years, and should now (to ensure balance and re-establish their famous ‘inpartial’ credentials!) be keen to use the same company to illustrate the end of the ‘Bubble’.

  Contact your Governors/State legislators, tell your representative, hell; drop the cowboy in the big house a line, in short make sure no-one can claim they weren’t warned/told when it finally becomes a ’story’.

  I see the whole point of the internet in the 21st century being for us to use as a tool in order that the world either become a place where this shit can’t happen, or that the proper safety nets are in place. I bet this stuff doesn’t happen in the Scandinavian countries!

• Swimming near Cornwall
  Jul 31, 2007 at 6:26 pm

  What’s this about a great white shark?

• Hugh Walter
  Aug 1, 2007 at 1:36 am

  Er,,,oh I can’t be arsed…..Google it!

  It’s our version of the Sun Newspaper trying to ruin the Cornish tourist industry single handed because they’ve got nothing else to do!

• Ben Rippedoff
  Aug 1, 2007 at 6:31 am

  Strange how we have not heard back from “R” (suspenseful movie music).

  Anyway, Snappy IS in trouble. They are losing 3 stores this month, have not signed up a store in months and most of their stores cannot possibly pay their bills with the revenue they’re posting.

  Snappy employees, make sure your resume is in order. It’s just a matter of time. I’m sure Debbie will try to keep the “successful” 3 stores running, but she won’t need you to do that.

  It’s time for a press release!!

• sean
  Aug 1, 2007 at 7:36 am

  What are the surviving stores doing differently? Is anyone having luck with aggressive community marketing? With charging higher fees for value-added services? Soliciting donated merchandise for charity and splitting revenues with the non-profit.

  Amidst all these challenges, what’s surprising me most is the utter lack of any creative ideas to solve these problems. Guys: Look at the pizza industry, one of the most competitive markets there is. When I get these guys together, they can toss out dozens of things they’ve tried and argue about what works and what doesn’t. When the question’s posed to drop-off store owners, what works, what doesn’t, there’s complete silence.

  There are legitimate complaints about these franchisors it seems, but there’s also a lack of fight on the part of the franchise owners. I agree with Chance on the challenges with this concept, but just saying it can’t work doesn’t help anyone save their businesses or their homes. Hate to be simplistic, but why not find a way to charge more and provide enough value to justify it.

  I’ve been wanting to start a brainstorming thread with ideas and resources for marketing drop-off stores, but I’m not sure I’d get a single contribution, just more gloom and doom. Am I wrong?

• Regular Joe
  Aug 1, 2007 at 7:48 am

  I think this concept might work in the higher income areas. But owners have to have such deep pockets to continue to operate at a loss for at least 4-5 years. The trouble with having these stores in an area that is not populated by Rockerfellers or Getty’s or Rupert Murdoch, cannot sustain because people just don’t want to give their hard earned stuff up cheaply. They can do it on their own and not have to pay out 48% of what the item sells for.

  An owner can go out and network and spend all their time out pounding the pavement to get business, then the store manager doesn’t show up for work, and the shipping clerk calls in sick, and you’re stuck working in the store . This happens alot.

  Deep pockets means a nice return, eventually…but plan on losing alot for 4-5 years. The last of the fight comes when your accountant says get out and get out fast..you’ll never make any money at this.

  You can have conference calls on fun ideas to market your store until you’re blue in the face. They don’t work in all markets and you can exhaust your annual advertising budget in 4 months.

  What works? Having deep pockets and investors and being in a “high-rent” area. What doesn’t work? Exhausting your life savings in 1 year and not getting anyone to invest..can’t even get an SBA or bank loan this industryis so new.

• R.
  Aug 1, 2007 at 8:36 am

  My apologies for not getting back to you all…someone pointed out that the eBay numbers were higher then Terapeak. Give that person a cookie. Terapeak doesn’t include eBay Motors.

  As for the other comments, I would tend to agree that there will only be a dozen or so stores remaining after about a year’s time with all the franchises…apparently the people who sold these franchises neglected to tell the buyers it might be a good idea to know how to start a business. It takes any business 3-5 years to seriously be self-sustaining, and these stores are no different; proven or unproven. You collect money from anyone selling or doing anything, and the longer you do it and the more people know you’re doing it, the better you will do. People, there are stores selling Purified Water and making money.

  I feel horrible for anyone who was told otherwise in regards to profit(s), with any franchise or business in general. My heart seriously goes out to them.

  I will let you all speculate as to why only certain stores are doing well. If we need to get into that topic, then this conversation will take a different turn…

• R.
  Aug 1, 2007 at 8:49 am

  Pardon me, I mis-quoted - the person stated that Terapeak was higher then eBay. None the less, Terapeak does not include eBay Motors.

• R.
  Aug 1, 2007 at 8:59 am

  Sean - To answer to question regarding a brainstorming thread. It wouldn’t work because there is a major difference between this industry and others.

  All of the franchises run the stores correctly, the major factor is the quantity of items taken in and sold. The more the merrier, and if you can keep that formula up you will make money - it’s true with any business obviously, but this one that is what people don’t talk about, how key that is.

  There really is nothing to brainstorm about, it’s a numbers game. Everyone probably knows how to market, talk to Chambers, talk to your neighbors…get referrals, etc. All of that is Business 101, but if they have no damn items then forget it. It’s that simple.

• Bill Clinton
  Aug 1, 2007 at 10:20 am

  Hillary and I were always amazed at the apathy of our fellow owners and I’ll include ourselves in this category too. Every other week we would all join in on a conference call to listen to Debbie & company tell us the business is all balloons, cupcakes and rainbows. Did anyone ever chime in and say, the reality is not matching the Snappy sunshine, not while we were on the calls! Furthermore, an Intranet forum was made available for all owners to talk about & exchange almost topic. It was all but unused (or censored?). In the end, franchise owner apathy met customer apathy after a few trips to drop things off resulted in ebay prices for their items, minus the store cut, PayPal gouging and ebay fee’s, or close to 50% of the ebay selling price in the form of a check that took about 6 weeks to reach the consigner.
  Oh yeah, what marketing wizard sends out a mailing to existing customers informing them that the beatings will continue until morale improves? Raising store commision rates to 38% and informing the customer base in this manner is about as ill-based as my decision to get a haircut on Air Force One while on the tarmac at LAX thus causing a huge west coast air traffic snarl & delay that lasted the rest of the day….

• Gotta GO
  Aug 1, 2007 at 10:40 am

  How do I get my posts removed from this site?

• Chance
  Aug 1, 2007 at 12:38 pm

  This email went out last week, and was responded to the same or next day. It is all very typical of the issues inside this franchise system, Isoldit, Snappy, Quikdrop, or others. Perhaps it will enlighten those of you on WHY this concept does not work and never will. I have commented -have fun!

  Sent: Sunday, July 22, 2007 11:47 PM
  To: whatth@getoutwhileyucan.com
  Subject: Important information for eBay drop off stores

  You need to know the truth about Ebay drop off stores. ISoldit has closed over 60 and stopped selling franchises. Snappy Auction stores have closed in many locations including their flagship Manhatten location and 3 in their home town of Nashville.Auctioning4u is dropping its stores.
  Learn more about the truth if eBay drop off store franchises here:
  http://www.amitheonlyone.org/
  See how lives are being ruined by ISoldit, Auctionin4u, Snappy Auctions, Auctiondrop and the like. Why aren’t these franchises growing? Why are they closing like CRAZY!!!

  The Snappy response!!!!

  Debbie: Many of you have received an email regarding Snappy Auctions and the drop
  off industry. We believe the email originated from someone within the
  Snappy Auctions franchise network. They are directing people to a site run
  by two people (Karen and Gene) who are former iSold It franchise owners.
  They claimed they were defrauded by iSold It, but have also decided to aim
  their anger toward all franchisors including Snappy Auctions. They started
  the website almost two years ago, but have really begun actively contacting
  other franchisees over the past few months. The people running the website
  have declared that their personal mission in life is to encourage other
  franchise owners to close their business.

  Comment: AmITheOnlyOne.org does not solicit or encourage anyone, they listen and offer helpful advice to those asking for help. And they do it for free. They publish excerps from franchisees, of the truth, with no anger aimed at any franchisor. However, if the franchisors seem to have a problem with the truth being out there, perhaps they are feeling guilty. Otherwise, why gag their former franchisees. I understand that Gene offered to help Debbie’s franchisees teach their sellers what to bring in to sell, and her comment back was “Are you kidding?!” What is it you don’t get Debbie, Gene was VERY serious!

  Debbie:People are entitled to their opinions, but there are some things written I
  would like to address specifically that are implied as facts but are simply
  untrue.

  Comment:Franchisees are NOT entitled their opinions if they disagree with the franchisor. The only facts available are those of the slanted franchisors. Hummm…what is wrong with this picture?!

  Debbie:First, Snappy Sales, LLC and all of its affiliate companies have no
  litigation, arbitration, or mediation against us, both past and present,
  with anyone including franchisees, customers, etc.

  Comment:How sure of this can you be? I am personally aware of more than one issue, and gag orders only delay the truth.

  Debbie:Second, all monies allocated for customer payouts are held in an escrow
  account managed by First Tennessee bank. Any implications about our
  practices with customers’ money are simply untrue. The recent accounting
  error was indeed a human error but never did any of your funds leave the
  escrow account before they were sent to the payment processing service.

  Comment:Seems that you are having a bit of an accounting problem, no matter who you blame. And none of the franchisees can fully track all monies. (Yes Sean, Corp can sweep their account any time, any amount!)

  Debbie:Our legal counsel is looking into this and we are tracing the origination of
  some entries and the email you received. People are entitled to free
  speech, but defamation of our company and breach of confidentiality by our
  franchisees, including publicly sharing internal communications, is
  unacceptable and legal grounds for termination.

  Comment:Lets run scared, intimidate the franchisees instead of trying to work with them (Sean: This is exactly WHY the franchisees won’t speak up! They are NOT entitled to FREE SPEECH or they will be terminated)

  Debbie:Franchise owners are independent business owners, and yes, some will fail.
  We have had stores close over the past few years. Stores that have closed,
  failed, or are struggling are not a reflection of your individual
  capabilities as a business owner. As we move forward, I encourage all of
  you to remember that you are in control of your business with the full
  support of the corporate team.

  Comment:Not some but MOST (a few have deep pockets) are failing. (The problem is Sean, that NOT ONE is making money in ANY franchise system). The few that claim they are breaking even, are not paying themselves, or not paying back their startup loan, and MANY are working outside the system, selling on another id or not reporting income, or are purchasing palettes, say from China manufacturers, and reselling. This concept is not a winning prospect!

  Thank you,
  Debbie Gordon | President/CEO

  Comment: Open mouth, insert foot…

• sean
  Aug 1, 2007 at 1:52 pm

  “How do I get my posts removed from this site?”
  You can’t. However, you can post another comment retracting your initial comment, saying why it was incorrect, etc.

• Hugh Walter
  Aug 1, 2007 at 1:58 pm

  Best to get contractors in - they’ll dig round about a yard out untill they find the concrete footings, then they’ll bash them with a sledge-hammer untill they loose their structural integrity and crack, after which the posts should just pull out. If you don’t want to re-use them, try half cutting them with a saw, and then snapping them with a quick tug at the top.

  Hope that helped!?

• sean
  Aug 1, 2007 at 2:22 pm

  R. said: “…All of the franchises run the stores correctly, the major factor is the quantity of items taken in and sold. The more the merrier, and if you can keep that formula up you will make money…”

  “Everyone probably knows how to market, talk to Chambers, talk to your neighbors…get referrals… but if they have no damn items then forget it.”

  The point of marketing would be to get items in, generate trial from new customers, prompt repeat business from existing customers. If everyone knows how to get items, the key to success, why aren’t they successful?

  How many people in your market have any clue what you can do for them, how your service works? My guess is: a lot fewer than you think. I’ve seen very little effective, creative marketing for this concept from any of the chains. Perhaps store owners don’t understand what marketing is, how it works, what it can do…

• Gotta GO
  Aug 1, 2007 at 2:33 pm

  Anything posted under the follwing names is no longer valid and should be ignored:

  Get Real
  Mad Owner

  Please ignore these posts as they could be viewed as “defamation” and should be considered invalid.

• BenScrood
  Aug 1, 2007 at 3:01 pm

  What is this supposed to mean? What is going on? Who is twisting the screws?

• Chance
  Aug 1, 2007 at 3:23 pm

  It is a very sad day GET REAL/MAD OWNER, when you feel you can not tell the truth. In fact it is NOT deformation if it IS the truth. When the store is losing money monthly, the consignors aren’t getting paid, and the software doesn’t function properly—you are allowed to say EXACTLY that! Do NOT let franchisors threaten and intimidate you, call a lawyer! Or talk with AmITheOnlyOne.org , and yes there are others feeling the same way.

  Sean: No one has the answer to make it work. Larger $$$ items is not the answer, it takes a $300+ item for a $100 sale on ebay, of which the seller gets less than 50% (after fees). Most people don’t have a truck load of these items to sell. High end areas tend to donate items rather than sell them. What you are selling is not consumable (like water, makeup, toilet paper), and you are in full competition with all the other franchisees (unlike Dunkin Donuts who only sells to its specific area). Processing more items cost more than the return. Most people will not pay up front charges, and the franchisors use this for advertising (the little bit they do).
  Branding in this franchise system is a joke-the franchisors spent X millions of dollars to SELL the franchises, NOT to bring people into the stores, so there is a strong lag in the public awareness, which will not do much good. Most people only get rid of junk, and junk doesn’t sell on eBay. Besides, once you have cleaned out the garage, there is no reason to go back to these stores(unless you have a full attic), so return customers has a limit.

  As for making money at this thing, powersellers make money by elimainating overhead and selling in a niche market that they have knowlege of (that is not what an ebay drop off store is)!

  And what it comes down to is franchisors who are fully aware of the issues, and continue to sell more misrepresented franchises, while mom and pop file for bankruptcy or start a website to get the truth out!

  Go ahead Get Real, say what you mean!

• Hugh Walter
  Aug 1, 2007 at 3:25 pm

  Chance - And All;

  Do you think someone has ‘got’ to Gotta GO/Get Real/Mad Owner?? Re. the above post and your stuff above - I apparently have a letter waiting at my mothers place from Auctioning4u. It would seem the bosses are talking/trying to silence us?????????

  Will pick it up at the weekend - watch this space!

  I think we’re getting through the message!

• Hugh Walter
  Aug 1, 2007 at 3:54 pm

  Chance

  you posted while I was writing, You’re right about the funding being toward selling the clouds to potential franchisees rather than the brand to customers.

  At A4U (while I was there, I can’t talk for the period after I left - a year ago) advertising consisted of paying a Guy on a bicycle to drive round putting leaflets on car windscreens in the two or three of the wealthiest boroughs in London.

  There were also ad’s in Saga Magazine at some point and I fought to get ad’s in Collectors Gazette. Indeed one of the reasons Christian calls me ‘Difficult’ on the “will Auctioning4u save…” page is because at all three or four official meetings I had with him my number one, scratched-record topic of conversation was; where is my marketing budget? why has it been reduced? When will I see it?

  Saga is read (predominantly) by the affluent retired who want to shop for cruises, sort out inheritance tax and find out what the Fashion in shrub roses is this season! they cleared out their clutter years ago to buy the villa in Porto Vanusse.

  While the drivers of the 4×4’s and sports saloons we were leafleting in Chelsea, Kensington and the like, send their maids to the local Charity shop when they dump last months shoes!

  Fact - anywhere in the UK, a silk tie in a Charity shop is £1, in Notting Hill they are £6/8 in the same charity shops. Even if they had come to us what would we do - less than £30 - Sorry! And if we had taken them they’d sell for 99p.

  Recap?

  Concept doesn’t work, probably never would have, unlikely ever to do so, never been properly supported by the parent/Franchisor companies, and now the bosses are getting pissed off with our pointing out these facts!

  At the risk of appearing contemptuous; F**k’em they’ve f**ked us!!

• BenScrood
  Aug 1, 2007 at 5:14 pm

  Well it looks like Snappy strikes again. It’s just like they say on amitheonlyone.org.
  Most likely threats and intimindation on part of the franchisor. This is not new.
  I wonder what is was this time. Threat of contract termination, or possibly a threat of a lawsuit. Typical.
  Unfortunately for them, they forgot rule #1 of marketing and guerilla warfare: use the press to your advantage. By trying to silence GET REAL, they just prodded us on to do MORE!!!

  By now the word is getting out. They can’t stop it.

• BenScrood
  Aug 2, 2007 at 10:54 am

  Does anyone know if the stores (ISoldit, Snappy Auctions, Ubidit) really know what is going on? Number Cruncher showed us some pretty interesting numbers and even though “R” (can you say someone from Snappy Auctions) tried to poke holes in the numbers, they couldn’t. How do we get them message out to the stores without getting hit with threats of lawsuits?

  Get Real, can you tell us what happened or are you under threat of lawsuit for telling the truth? Your silence will confirm our thoughts on you being threatened with legal action.

  Since “R” brought up a new point (obviously from franchisor point of view) let’s discuss this new twist they’re trying. They say anyone starting one of these businesses should be in for 3-5 years before they expect to see a return. EXCUSE ME! That’s not what franchisees were told. I seem to remember an article where Debbie Gordon stated 6-8 weeks to break even. That doesn’t sound like 3-5 years. Also, why do you buy a franchise? Because they are supposed to have worked out the model! You’re paying for their “expertise”. 3-5 years is normal for starting your own business.

  What’s next Snappy? I need to sit down. My head is already spinning from their response.

• R.
  Aug 2, 2007 at 11:35 am

  I was merely saying that the numbers that this particular person was pulling from Terapeak did not include eBay Motors sales. From what I have seen, these stores (I soldit, QD and Snappy) can sell vehicles and parts alike.

  I imagine that the 6-8 week time frame was meant to explain the time in which you would not be taking from your startup money to fund the store. That would never mean that you would pay back your investment in that time frame…if you thought that then your head should be examined.

  So you’re telling me that by opening a franchised store, you’re not starting your own business from the ground up? That’s interesting.

  I don’t doubt that stores are not doing a ton of revenue, but it’s all relative isn’t it? I bet Not everyone has high rent and a ton of overhead.

• Chance
  Aug 2, 2007 at 12:05 pm

  Ben: The numbers have been broken down on AmITheOnlyOne.org, and many of the franchisees were told three to six months to breakeven. NO type of store makes it 3 to 5 years dumping $$$ in every month unless they have deep pockets and need for a writeoff.

  How about just not having to dump thousands of $$$ into the store every month (like we have all had to do) just to keep it going! We are not talking money that is spent getting the stores up to snuff. And these stores have little to NO assests to sell off, you might get $10,000, and that won’t dent the $100,000+ startup fees incurred.

  Just because ALL the stores are doing piss poor, it can’t mean that THEY have a problem, it must be you….sure!?! You know it is ALL your fault, you chose the wrong location (that they approved), you hired too many (what they reccommended), and your not selling high enough priced items (although you were told $30+ starting at 9.99), and you are not cutting costs (more items=more overhead).

  Lets get real, if anyone found the best area, high items, worked 90 hours a week without pay, it WASN’T the franchisor! You did what you had to to keep it going. So pat yourself on the back! You are not the one propagating the lies -they are, and the truth hurts!

  The franchisors are running scared, otherwise why would they threaten or gag their franchisees, and yes they are doing both! This is an unproven concept, that does not work, and a closing rate of better than half only proves that! In fact if it is THAT great, why don’t these franchisors buy back or own more corporate stores???????Hmmmmm!

• Chance
  Aug 2, 2007 at 12:29 pm

  Hey R: lets talk about motors. First of all, each state has different laws allowing or not allowing the sale of cars, and second I and many others did not open a store front to be a used car salesman, or auto junk yard. By the way there is more than Terapeak out there and the $$$ still look BAD, even counting motors. (Sean: Did you know that most zees might make a whole $250 on a car sale of $10,000 or any amount. What does that do to ones ebay sales number? Lets say they sold $$20,000 less 10,000 = 10,000 in full eBay sales at 35% commission thats $3500+250 = $3750. I can guarentee even with LOW overhead, you didn’t make the bills, and we won’t even get into the shipping problems with auto parts).

  So R, perhaps you need to rework the math on a more practical level, or try running one of these stores competely by the system (many of the stores sell cars off the books just to help pay the bills). As I said-I and most of the others did not get into this business to be used car salesman or a junk yard!

• R.
  Aug 2, 2007 at 12:36 pm

  Man, Chance, you are a bitter one. You didn’t know this would be hard when you got into it?

  What’s the median income of your city per household? Do you know? Do you think that makes a difference?

• Chance
  Aug 2, 2007 at 1:03 pm

  This isn’t “hard” R, it is ridiculous! The reality is that the concept does NOT work. And the people around here in $500,000 homes, won’t make the concept work either! A BAD concept, and a BAD franchisor are the issues, and looking at the world thru rose colored glasses doesn’t make me bitter or help save any of these stores. How many other UNTESTED concepts do you have to offer? Are YOU going to pay for my childs college education, my retirement, and for the home of those bankrupting - I don’t