eBay Drop-off Stores Close Their Doors in Kentucky

[Kristijntje]

Vacant offices of unprofitable eBay trading and drop-off businesses in Bowling Green symbolize the rise and fall of such ventures despite what eBay Inc. sees as a rising demand for service...

There is high demand for the service, but having an upfront profit margin is key, according to Besemann.

“The biggest thing that kills the success rate is the overhead that people are having to pay to stay in business,” Besemann said. “The commission is really not enough to support the overhead you have to pay to make a profit.”...

“Nationally, it was - and still is - a kind of a fad industry. There been locations in Louisville that have opened up and closed,” Besemann said.

Besemann suspects it may be better for eBay businesses to be run out of the home or in places with low overhead costs...

full article: http://bgdailynews.com/articles/2006/09/.../news8.txt

[thentavius]

These drop-off shops might have been able to stick around if eBay hadn't continually F'ed sellers and services.

[stardust]

Besemann suspects it may be better for eBay businesses to be run out of the home or in places with low overhead costs...

Kind of a no-brainer.

[xppman]

I believe it was the iSoldit franchise?
That I saw a commercial for the other day on TV
telling peeps how great is was... to just bring in their stuff in
and we will sell it for you on eBay. 

Isn't that the one (company) that keeps failing one poor smuck
after another that bought in to this crappy
trendy franchise biz?   

If so we must have a smuck not to far off from me who is
PAYING to advertise their newly opened iSoldit outlet.  :

[cranky_hippie]

A (stupid) friend of one of my kids sold a car through one of these places. They didn't get nearly what the car was worth and he ended up owing them 50% of the sale price.  :o

[regic]

[quote author=xppman link=topic=5238.msg24591#msg24591 date=1159124059]
I believe it was the iSoldit franchise?

Isn't that the one (company) that keeps failing one poor smuck
after another that bought in to this crappy
trendy franchise biz?   
[/quote]

Yes.

While all this seems to bode well for the franchise industry, a closer examination tells a different story. For instance, iSoldit widely boasts having "sold" 900 stores, and that the company plans to expand to 3,000 stores in the 50 states. But iSoldit Senior Vice President of Marketing David Crocket acknowledges that of the 900 "sold" stores, only 182 stores are currently operating. The remainder are "under contract" to individuals either as single stores or territories ranging up to five stores. When pressed, iSoldit acknowledges that they are still "conducting studies" as to the overall expansion feasibility of the industry within a 1,000 to 3,000 store range...

http://community.tuliptools.com/index.ph...108.0.html

what you need to spend BEFORE opening an iSoldIt franchise store:

Expense    As Low As    As High As
Franchise Fee    $22,000    $22,000
"Store-in-a-Box" TurnKey Build-Out Payment    $59,500    $79,000
Lease Deposits (Internet & Utility)    $1,000    $7,000
Permits & Licenses    $500    $1,000
Training (Travel & Lodging)    $500    $2,000
Installation (Phone & Data Lines)    $1,000    $1,500
Professional Fees    $1,000    $3,000
Additional Funds    $20,000    $40,000
TOTAL    $105,500    $155,500

http://community.tuliptools.com/index.ph...919.0.html

[stardust]

Stupidity at its highest. :

[xppman]

If I EVER got my hands on $155,500 all at one time.
I'd know what to do with it.
And it wouldn't be investments in "others" ventures either.

I have a knack for taking 200.00 and turning it into 2000.00.

Why oh why does it always seem the ones with all the dough
are the one's with-out a lick of common sense?

[valleygirl]

TOTAL    $105,500    $155,500

That is insane.