Local I Sold it On Ebay store vacates, business model in pricey strip mall still suspect |
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Any guesses what’s circled in red in the picture above?
A little over a year ago I wrote a post titled I Sold It on Ebay: cool looking store, subpar internet presence that has since generated 50+ comments ranging from I didn’t know what I was talking about criticizing the business model to confirmation from others that the high lease contracts do hurt the business model to even more bizarre claims like almost none of the franchises are making money. There was even this other guy from a rival service saying how his service wasn’t having the same problems. Clearly this post struck a nerve.
I just reread the original post to see if I wanted to take back anything I wrote today. Sometimes you write things that don’t prove out to be accurate over time or were terribly flawed from the beginning, but I couldn’t see back then how this business could make it having to pay the overpriced strip mall lease rates. And still can’t.
So recently we are up shopping because Best Buy is in the same complex and what do I see?
Yes, that same iSolditonEbay store is moving a little over a year later. They cite having two other locations and I didn’t get a chance to talk to the owner to see if the reason for moving was the high rent prices, so this post shouldn’t be deemed a “look, I told you so neener neener” type post. Rather, it should be further evidence to question how or why people would open one of these beautiful stores in an expensive strip mall if they intend to move location over 15 miles away. Location couldn’t have been that valuable. At least in this case.
An isolated case? I don’t think so.
I can see the model working much better in a less expensive location. Buy a house and renovate it on a budget. Don’t go to a strip mall and think the people will come because hey, look it’s in a strip mall. One of the first rules of managing business expenses is watch overspending. High rent if you don’t have a high traffic business can be a major exposed artery. And it can kill a business in the first five years when cash flow is usually most vulnerable.
Unlike visiting a retail store, shopping in a mall or eating out, people don’t just go out thinking: “You know what, we need to go sell some stuff on eBay!” If they put that much thought into it, then why not get their own account or a friend to do it for them? Or better yet hit the yellow pages or [gasp] search engine, which leads into my other point that if one of these business can’t sell itself in the search engines they might have a hard time selling my stuff on eBay too where the competition is every bit as fierce. It’s not that hard a stretch, but I was challenged on this theory too whether or not a brick and mortar business like this having no search engine presence is important.
That’s ok, I don’t mind being challenged on my opinions. That’s just another way to become more enlightened and learn more about business. The problem I see is a higher proportion of people who take issues in the comments area don’t stick around long enough to see the outcome.
A year later the I Sold It on EBay store and business that was on such strong ground is moving. I’m sticking by my original argument to find a different business opportunity or if you go into something like this then don’t overspend on location.
I don’t know if they moved to another strip mall location or not. Maybe I should keep track of the two other locations and see where they are at in a year or two. And perhaps with that post I can get an interview with the owners to find out what really happens in an I Sold It on Ebay business.
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I used the dis-services of “I Sold It”, and got totally ripped off. I sent collector cards to 9 different “I Sold It” stores in different geographical areas to be listed (three to each). I was previously Sales & Marketing Director for the company that printed these particular cards. I received payment from the Ann Arbor store for 2 of the sold cards. The third card was reportedly sent back to me by the owner of the store, but the envelope was ripped open and empty except for the letter from the owner. Apparently someone at one of the franchise stores determined for himself that these cards were counterfeit (which they were not). An internal memo alerted the other stores, who in most cases acted by not listing my items, not returning them, and breaking my contract for services with their organization. From one branch, I received an inappropriate phone call. My loss is many hundreds of dollars, but would cost more than that in time and money to legally pursue. I am writing this in hope that others are not taken in by this company.
Comment by Paul Burdick — May 14, 2007 @ 9:51 am PST
Just curious, but what kind of collector’s cards, Paul? And why did you choose to use I Sold It and not eBay it yourself? Convenience?
Comment by TDavid — May 14, 2007 @ 10:34 am PST
Hey TDavid, have you been to AmItheOnlyOne.org? It’s a website started by 2 previous IsoldIt owners to show people how the business model is flawed.
Comment by Armando — May 30, 2007 @ 9:49 am PST
No Armando, I’d never seen that site. Thanks for the tip, it’s got some good information that prospective franchisees should consult before taking the plunge.
Comment by TDavid — May 30, 2007 @ 10:03 am PST
Tell me about it. I own an independent eBay drop off business called Vendelo so it is important for me to know what is going on in the industry especially with the leader. Do you sell anything on eBay? Check out my blog http://vendelo.blogspot.com if you get a chance. I write about my entrepreneur and eBay selling experiences.
Comment by Armando — May 30, 2007 @ 10:37 am PST
Actually … a local eBay dropoff is suing me about an article I wrote about them (and their “business model”) - they so far have dragged it out in the courts to over a year and a half.
I may have beaten you to the punch about iSoldit having problems and the shells of stores not being good advertising.
I discuss these types of things regularly.
Comment by Rus — May 31, 2007 @ 4:45 pm PST
Didn’t realize there was some kind of race, Rus
Just an observation I made one day last year and at the time if you go back to my April 2006 post linked above you’ll see considerable interest since then. I wasn’t aware of Entrepreneur magazine declaring this a great business in 2007 which makes the story even more Hmm-inspiring.
Comment by TDavid — May 31, 2007 @ 5:11 pm PST
Ha - no race - just that this has been forecast by those who have actually done business with these eBay dropoffs. The statement - “I give it a year” - is finally coming to fruition.
Comment by Rus — May 31, 2007 @ 7:01 pm PST
I briefly was Manager of an ISoldit location. It was one of three that had been opened by the same entrepreneur. Within one year of opening, the store was for sale. Because I thought about “buying my own job”, I looked at the books as a prospective purchaser. In fact, this location was getting eaten up by the lease payments. There was no logical way that the store could carry that payment on its eBay model alone. Shortly thereafter, there was only one remaining employee at that location and it wasn’t me. The entrepreneur then changed the business model to include purchasing pallet lots and using the store staff to sell their own goods on eBay as well as the drop off merchandise. I can’t say for certain how it’s doing but it is still open in its premier retail location. I couldn’t see paying premium rates for what is essentially a second-hand merchandise store.
Comment by Dave — June 27, 2007 @ 7:39 pm PST
TDavid, I thought about Isoldit back in Aug of 05 and and was amazed at how quickly they said they were growing with new franchises every day on their site. I was doing ebay part time and making very good money–mainly due to the fact I have a good eye for what sells. Profit was great because I was mainly getting stuff out of the dumpsters!
Anyway, having been in the retail biz previously, I, too was amazed at the business model. Didn’t make a bit of sense for me to open one on my own, much less pay a franchise fee! Anybody who purchases one of these is a definite idiot and needs to be parted with their money. Only way for you to survive is to buy and resell your own items. Even that’s not foolproof either.
Bob
Comment by Bob — September 21, 2007 @ 9:41 am PST
I took several things from my business to the I Sold It Store in Lake Zurich, IL. One item sold in July for $200.00. I had asked and asked for the money and got a run around. Now I find that they’ve posted a sign on their old location saying they moved but guess what? They didn’t give a new address. Go figure. So now I’m not only out my $200.00 but I have no idea if they’ve actually thrown away my other items or if they’ve sold them.
Anyone having any connection to the people that owned and/or ran the store in Lake Zurich, IL please feel free to contact me. I smell lawsuit. And yes, I know it will cost more for attorney’s fee’s etc. but it’s now become the principle of the matter.
Elizabeth Freshour - Lake Zurich, IL
Comment by Elizabeth Freshour — October 18, 2007 @ 5:39 pm PST
Before moving to PA in 2005 my husband sold things at I Sold It in Lake Zurich, IL. He didn’t have any problems and received his checks in a timely manner. My son brought things to the same store in May 2007 and it has been a completely different experience for him. All of his items sold by June 15 and he was told that he would receive a check for $384 in
4 weeks. He still hasn’t received a check despite calling every other week since late August. His last call was 10/20 and the phone had been disconnected.
Does anyone know what is happening with the Lake Zurich, IL I Sold It?
Mary Ann Sokola - Perkasie, PA
Comment by Mary Ann Sokola — October 24, 2007 @ 10:07 am PST
Fascinating happenings in the drop off store world these days. As a long time eBay seller myself, I had no doubt that there would be a huge shakeout in this business. Too much sizzle, and too little steak.
TDavid,
That store, (er, former store), you pictured is in my area and, as far as I know, they did not move or open in Auburn and/or Federal Way.
Comment by Russ — November 10, 2007 @ 3:26 pm PST
I’m entering a lawsuit against a former owner of the I sold it location in Wixom, Michigan. It was my first experience with using an agent to handle a eBay sale. It was similar to the Lake Zurich situation. My item was sold online and I was told to expect payment within 4 weeks. I visited the store only to find it closed.I attempted calling the store phone number after that time and only got an answering machine whose message said that questions about outstanding payments should be sent to an email address. I sent several emails with no response of any kind. Finally my inquiries were returned as undeliverable because the mailbox was full. I also discovered that the itme I dropped off was sold under the owner’s private account so eBay could not help since my name was not showing as seller or buyer. After investigating I found the name and address of the owner and have had my lawyer send a letter requesting payment. If there is no response to that I will file a police report and pursue him in civil court. I have, however, dealt with the I sold it in Ann Arbor and have found them to be very helpful and sold several items with no problems.
Comment by RichardB — January 5, 2008 @ 11:10 am PST
Quick question, I am looking at a store that in it’s first year was in the black, which for any retail store in their first year is a good sign. However, I am curious about what everyone here has posted. It sounds as if one was just dropped and others have made terrible business decisions, just because you buy a business doesn’t mean you a smart business person. Does anyone have a more realistic positive experience with a store that has been run by a quality business person?
Comment by Leanne — March 10, 2008 @ 10:40 pm PST
These iSoldIt Ebay drop off stores are dropping like flies! Two that opened in my area both closed after about 6-8 months. It really is NOT a good business model long term. As a matter of fact it is one of the biggest Franchise Scams I’ve ever seen. Sure some are still doing business but I suspect MOST have failed. Why would anyone need to pay a Franchise fee for an ebay drop off business is a mystery to me.
Comment by ken — April 15, 2008 @ 10:34 pm PST
Oh I have been ripped off my my local I sold it store and I’m hoping to take some legal action against them. I sold three items there LAST MARCH and I still have not been paid for them. The local store is now closed and was “moving to a new location.” I have contacted the BBB to officially file a complaint, but nothing can be done because the owner of the store was not returning their phone calls or picking up the certified letters that both myself and BBB have sent. I’ve contacted the franchise several times and get the same line of crap every time, “each store is independently owned and operated. . . blah, blah, blah.” Do NOT sell anything here!!!!!
Comment by Rachael — August 31, 2008 @ 10:52 am PST