[R-390] R-390/URR

[Barry Hauser]

Hi Roy & Gang....

I've won auctions from local "I-Sold-It" stores and one other franchise. 

Most of these seem to go under.  Biggest problem -- they need to pay for 
a retail storefront (high rent & expenses) to attract people with things 
to sell and many of them starve for good ebay-abe merchandise. People 
often bring in a lot of junk and really oddball stuff -- they don't have 
the same control of the incoming goods as, say, an estate buyer would 
have.  Unless they get help from the owners of the goods, it may be pot 
luck in terms of title, categories and description.

They also handle the packing and shipping.  Any problems with the 
buyers, damage in delivery, etc. is their problem to handle.  So they're 
doing a lot for the money. 

Soooo... let's see now.  The opening bid is $2500 -- so far no bidders.  
If it sold for that amount, according to the info Roy found, the 
commission would be a third -- about $832.  About $55-60 in ebay fees.  
Payment processing (CC merchant fee or paypal) would run 3% of about 
$2600 plus the $1.25 -- about $80.  Total deducted would be about $975 
or so, if I figured correctly.  The owner would net about $1525.

As I recall, at a local store here (before it closed), the commission % 
was lower than 33% on higher priced things, but I don't recall what it 
was.  This I-Sold-It guy had another store, then opened this one,. then 
closed it.  He even experimented with consignments of new merchandise, 
like Ricoh color printers -- didn't work out.  Also -- it's a franchise 
and there are franchise fees, restrictions, requirements to buy certain 
brochures, etc.  from the franchise company, etc. 

That other franchise -- Quik Drop -- was in business less than a year.  
The owners decided to drop the franchise and wing it independently from 
one of their garages. 

It's a kind of backwards retail business.  With a regular store, you 
invest in inventory which you can choose and have some control over -- 
and then advertise and hope that the right customers come in to buy.  
With the ebay stores, you're waiting for the customers to bring the 
merchandise/inventory.  And, a lot of what they bring in takes up 
expensive retail space, labor to list it -- then doesn't sell.  Some 
sells well at a very high price -- but imagine it's a heartbreaker -- 
can't order more from the supplier.  It's a real crap shoot, and in many 
cases, the odds are against the house.

Barry

Roy Morgan wrote:
> At 10:07 AM 12/17/2007, Robert Nickels wrote:...
>> We did not test this unit because of the vintage of the tubes. This 
>> unit is presumed to be working
>>
>> Pretty hokey excuse!  I wonder how much these e-place consignment 
>> shops charge for this kind of "service".  I guess their "value" in in 
>> their ability to take pics.
>
> R-390 Folks,
>
> The one for auction still bears the serial number 4349.
>
> I got a brochure from an "I Sold-it" store not long ago. I seem to 
> remember a fee of 20 percent, but it was a sliding scale, I think.  
> But I am wrong:
>
> at:
> http://www.i-soldit.com/fees.asp
> I find:
> "iSold It does not charge you anything upfront to list your item. Once 
> your item sells, iSold It deducts both our commission and eBay and 
> payment processing fees before sending you a check for the balance.
>
>     * iSold It Commission (may vary by store)
>       Typically, iSold It's commission is 33% to 40%. The commission 
> maybe lower on higher priced items. iSold It charges a $5.00 minimum 
> commission per item.
>
>     * eBay Fees
>       Listing/Gallery photo fee of $0.75 (assumes $9.99 starting bid) 
> plus 5.25% of the first $25, 3.25% of the next $975, and 1.5% of any 
> amount over $1,000.
>
>     * Payment Processing Fees
>       $1.25 plus 3.0% of the total transaction value (sales price, 
> shipping & handling and sales tax)"
>
> My reading of this is that if it is consigned to I Sold-It, the seller 
> may not make much, even *IF* someone bids the $2500!!
>
> Roy
>
>
>
> - Roy Morgan, K1LKY since 1959 - Keep 'em Glowing
> 13033 Downey Mill Road, Lovettsville, VA 20180
> Phone 540-822-5911   Cell 301-928-7794
> Work: Voice: 301-975-3254,  Fax: 301-975-6097
> roy.morgan at nist.gov -- 
> _____________________________________________________________