Wagglepop 2: Deja Vu as Auction Site That Left Sellers Stranded Reopens

[jojo-p]

Pay up, Poppers!  Your store price just DOUBLED.

Date Posted: Thu 04/23/09 6:40 am
Posts: 366
Member Since: 20 Jan 2007

Hello Wagglepop Members,

After a very difficult meeting with ownership earlier today I am bound to relay the following dire circumstances that force us to drastically increase the cost of participation if Wagglepop is to continue operation.

Paid participation is way down - all the way to 45 SmartSell subscribers in good-standing.

As a result, as of May 1, 2009 we will no longer have any financial support from ownership to make up the difference in our operating loss each month. Zero, zip, nada. No more money except that which we generate.

It was a difficult decision for ownership to make, though I do understand the reasons behind it - Wagglepop is a terrificly effective site for focused individuals to set up shop and make money, but for those looking for another eBay it is simply viewed even by us as non-competitive. Not for lack of features or performance, but simply out of lack of participation in numbers required to support that along with so many having difficulty operating in a trust-based environment - particularly in regards to payment of seller account balances.

My goal now is to be able to continue operation of Wagglepop for those loyal members who wish to continue to be a part of it.

The ultimate decision was mine whether or not to close Wagglepop or restructure to be able to continue operation, and as such the following by way of full disclosure must guide me:

Average Monthly Operating Expenses
Fixed
1. Technical Support Contract = $975.00/month (15 hours)
2. Server Costs = $379.00/month
3. Customer Care Labor Costs = $576.00/month (12 hours week)
Non-Fixed
4. Technical Support Overages = $150.00/month average (2 hours)
5. Supplies & Miscellaneous = $40.00/month average
------------------------------
Average Total Monthly Operating Expenses = $2120.00

April 2009 Operating Breakdown
Total Revenues = $1422.35
Total Expenses = $2166.31
----------------------------------------
Operating LOSS = $743.96

As noted above, we will not be able to continue operation unless restructured immediately so that revenues meet expenses in totality. Customer Care hours have already been cut from 24 to 12 weekly in the last several months and the remaining expenses are either fixed or anticipated.

To continue, we must do the following:

Effective May 1st SmartSell Enterprise will (as it must) effectively double to $59.95 per month. Based on further attrition, if we can maintain 35 paid SmartSell subscriptions at that subscription cost, we can continue operation. Mathematically, revenues should meet expenses while still offering a tremendous value for subscribers.

This is something we simply must do.

Barring the ability to do that, we will have no choice except to close Wagglepop, sell off the programming, the domain name and licenses, and farm out the delinquent accounts to collection agencies to the highest bidder.

Please note that should we be able to continue by retaining and supporting around 35 loyal members, we will likely make unlimited Stores a permanent part of SSE.

Ultimately, sellers will be able to have unlimited Stores, unlimited listings, and no final value fees all for about 2 bucks a day. A great opportunity for those who can and would utilize it.

We'll be making the subscription cost changes for May billing and emailing all sellers over the next few days to notify them of the change and the needs behind it.

Yes, there are certainly smaller similar sites that do not incur the monthly expenses we do such as Customer Care, and ongoing need for a Tech Support Contract or hosting on a dedicated server. They live with basic code and features that are either not as complex or not as monitored, self-operate, and share server space. That is simply not what Wagglepop is, and for those that use us the difference between our performance and sites such as those is crystal clear.

Wagglepop has become and will further become a small "private" site where a small group of highly observant and motivated sellers can prosper, and buyers can find great deals.

It's clear - we'll never become the big or profitable enterprise we envisioned when first conceived and introduced, but in shooting for those stars we have simply built a good site that supports a handful of sellers to profitablity in a friendly community where shoppers can find a real bargain and great customer service.

That's something we can live with. We are hoping that about 35 of our wonderful sellers and thousands of buyers feel the same way about that and support the continuation of your and our Wagglepop.

Andrew P.
WP

[Alskling]

Translation of the above: "Same ol', same ol', we're broke, boo-hoo, no more hamster feed, and it's all those deadbeats and trolls to blame."

No more Koolaid, no more cyberbreakfasts -- so it goes for "the best SEO on the planet."

[xwpopper]

April 2009 Operating Breakdown
Total Revenues = $1422.35
Total Expenses = $2166.31
----------------------------------------
Operating LOSS = $743.96

What happened to KaRay's numbers of 700 stores, at $7,000/monthly, being the break even point? It couldn't have been that much for a $100/month server and a new pair of boxers  to lounge in front of the computer, while playing one of 4 different personalities, can it Ray?

Ray's just PO'd that no one wants to use his site for free, or the only ones who would have ever wanted to have already been banned as deadbeats who don't pay their bill. 

I wonder how many 3 year Popper Cheerleaders will be joining the X-Poppers "deadbeat" social club?

[maggie777]

$59.95 per month.

[xwpopper]

Just imagine if AndKaRay would have taken half of the difference between $2120 (Operation costs) and $9290 (Highest store count in 2006 X $10) to improve the site with the features sellers needed: Instant checkout, shopping cart, and eBay style Bulk Lister. Where would all the sellers be? Hundreds would have paid $10/monthly for an eBay feel site like WP that had the similar functions of eBay, but $60 month? I have 9 sites for less than that monthly and can load a dozen carts on each one with an efficient bulk lister, shopping cart, and instant checkout. I can literally have over 100 stores for less than one on Wagglepop.
Good luck getting the money.
And if any Popper continues to see the site as the future of their business after being practically told that if expenses aren't met, it's gone, then it's their own fault from here on.

[Alskling]

Just imagine if AndKaRay would have taken half of the difference between $2120 (operating costs) and $9290 (Highest store count in 2006 X $10) to improve the site ....

Ray would NEVER have done that because he is an egotistical, greedy, megalomaniacal  :asshat2: :asshat2:  who only knows how to do one thing, and one thing only -- MIX KOOLAID. He wasn't even half the seller most of his faithful Koolaid drinkers were (and many still are) on eBay. He never cared about his sellers - never ever - just their monthly dues -- period.  Notice how he rewards his loyal, Koolaid-drugged "long haulers": DOUBLE their monthly dues with one week's notice, thus giving them a 600% increase in store fees over one year.

WP is, was and forever will be, long after it fades into the black hole of "dynamic" oblivion , the biggest joke in cyberland -- conceived by a con artist with less business sense then the hamster that drives his server. The difference between revenue and operating costs, no matter how great, could never fix stupid.

[amy]

Translation of yesterday's announcement: Wagglepop II will be closing next month and the remaining 45 Popper faithful will take the blame because they were too selfish to fork over an extra $30 monthly to fund the revolution.  As with WP 1's closure, Ray will place the blame for the failure entirely on others.

[FineThings4U]

you have got to be shitting me.

[Alskling]

OMG. I think hell just froze over.

Check out what the head cheerleader we have all come to know and love has said on the WP boards:

"I have come to the conclusion that the best fee structure to produce solid growth in an "alternative' site such as Wagglepop is to have no (or extremely low if over a certain number of listings) up front cost, and charge for FVF and optional upgrades only. This may be the only way to attract sellers in meaningful enough numbers to sustain a site. At $59.95/mo and even at $29.95/mo, we can NOT attract new sellers. This has us boxed into an impossible corner now. As stated, I will pay $59.95/month to help keep Wagglepop open, but how many others will? Very few, and that number will continue to drop as time goes on, making maintaining the site impossible. Wagglepop must have the support of more sellers to make a turnaround and that can not happen at a cost of $59.95/month."

:turkey1: :turkey1:

[FineThings4U]

Did they quit serving free koolaid with the subscriptions?

I do believe that hell has frozen over, DB.  Either that, or we both have Alzheimer's now.