iSold It has stopped accepting applications for its franchise eBay drop-off stores as it focuses on helping existing franchisees, according to the company’s president and CEO Ken Sully.
iSold It is focusing on what makes some franchisees do well and makes others say it’s too hard and too much work. The model is complicated, Sully said, and “everyone is trying to figure out what works best.”
“After 18 months of operation, the 100th iSold It store was opened, and no stores had closed. Today, while encouraged by system-wide sales exceeding $4 million per month, the distribution of sales by store has proven to be a bell curve ? with top stores exceeding $80 thousand per month and others struggling to attain $10 thousand per month.
Compounding the situation, average selling prices and labor hours per item also vary significantly by store, creating a wide range in store contribution margins. This has resulted in a significant number of stores operating below break-even, and has contributed to over 60 stores closing.
Tragically, many individuals who believed passionately in the potential for the category have lost sizable investments, including homes and retirement savings. We personally find this unacceptable and, despite continued interest in this category, we do not feel comfortable selling any new franchises until we get the failure rate lower.
No comments yet.