Franchise Corporate


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Franchise Corporate

  2. 2. Welcome to iSold It <ul><li>Today we will present our exciting concept and brand -- not sell you on the eBay drop-off store category </li></ul><ul><li>Our advice in evaluating a franchisor: </li></ul><ul><ul><li>Look for the following in the the management team </li></ul></ul><ul><ul><ul><li>Character & integrity </li></ul></ul></ul><ul><ul><ul><li>Past & present experience </li></ul></ul></ul><ul><ul><li>Look for thorough concept development </li></ul></ul><ul><ul><li>Make sure there is a strong company vision </li></ul></ul><ul><ul><li>Review their financial strength </li></ul></ul><ul><ul><li>Make sure they will give strong on-going support </li></ul></ul>Only you can decide if this is right for you.
  3. 3. Review Of “How It All Started” <ul><li>Our founder, Elise Wetzel, was looking for a better way to fundraise </li></ul><ul><ul><li>The first iSold It was born in Dec 2003 </li></ul></ul><ul><li>But the idea was huge </li></ul><ul><ul><li>CNN ran national TV coverage </li></ul></ul><ul><ul><li>AP and Reuters ran nationwide roundup articles </li></ul></ul><ul><ul><li>USA Today featured iSold It on the cover of the Money section </li></ul></ul><ul><li>Soon after, Elise coined the term “drinking from a fire hose” </li></ul><ul><ul><li>Thousands of franchise requests poured in </li></ul></ul><ul><ul><li>Offices were built, employees hired & systems installed </li></ul></ul><ul><li>The first iSold It franchise opened in May 2004 </li></ul>… and the rest is history.
  4. 4. Where We Are Today <ul><li>Strong, Seasoned Management Team </li></ul><ul><ul><li>Ken Sully, President & CEO </li></ul></ul><ul><ul><li>Dave Crocker, EVP Marketing & Business Development </li></ul></ul><ul><ul><li>Keith Golden, Chief Technology Officer </li></ul></ul><ul><ul><li>Jerry Wright, VP Operations & Training </li></ul></ul><ul><ul><li>Rick Forry, Chief Financial Officer </li></ul></ul><ul><li>40 full-time employees at HQ </li></ul><ul><ul><li>All dedicated to supporting our franchise network </li></ul></ul><ul><li>Expanded to new our headquarters </li></ul><ul><ul><li>15,000 square feet stand-alone facility </li></ul></ul><ul><ul><li>Includes new training facility </li></ul></ul><ul><li>Backed with $7.25 million in VC capital </li></ul>
  5. 5. Current Milestones <ul><li>#1 Drop-Off Chain </li></ul><ul><ul><li>Ranked #1 in category by Entrepreneur Magazine </li></ul></ul><ul><ul><li>180 stores open nationwide </li></ul></ul><ul><ul><li>Over 800 stores under contract in 36 states, Canada, England, Ireland & Australia </li></ul></ul><ul><ul><li>Every major market covered in USA </li></ul></ul><ul><li>#1 Seller on eBay </li></ul><ul><li>Over $5M in network sales each Month </li></ul><ul><li>Over 750,000 successful auctions </li></ul><ul><li>Over 100,000 sellers in our database </li></ul>
  6. 6. Market Forces & Opportunities <ul><li>Few have sold on eBay </li></ul><ul><ul><li>Only 8% of eBay’s 61 million active users are sellers </li></ul></ul><ul><ul><li>The upshot is about $2,200 of items per household </li></ul></ul><ul><li>Online b2c is huge opportunity </li></ul><ul><ul><li>$60 billion liquidation and $100 billion returns per year </li></ul></ul><ul><ul><li>Biggest liquidators each control less than 1 percent of the market </li></ul></ul><ul><ul><li>Sellers often paid only a few cents on the dollar </li></ul></ul><ul><ul><li>Our efficient model pays up to 65% of the selling price </li></ul></ul><ul><li>e-Commerce is still in its infancy </li></ul><ul><ul><li>Growing 35% per year </li></ul></ul><ul><ul><li>Says eBay, “We’re in the very early innings of a very long-term secular trend.” </li></ul></ul>
  7. 7. The Appeal Of Drop-Off Stores <ul><li>We offer an attractive selling solution </li></ul><ul><ul><li>Garage sales and classified ads reach a small audience & net relatively low prices </li></ul></ul><ul><ul><li>Traditional liquidators don't like to take smaller lots </li></ul></ul><ul><li>Customers use our service because </li></ul><ul><ul><li>Selling over the Internet reaches a larger audience and nets higher selling prices & quicker transactions </li></ul></ul><ul><ul><li>We’re more efficient than doing it yourself because we specialize in online liquidation </li></ul></ul>
  8. 8. Drop-Off Store Business Potential <ul><li>Tickets </li></ul><ul><li>Concert Tickets </li></ul><ul><li>Sports Tickets </li></ul><ul><li>Season Ticket Holders </li></ul><ul><li>Airline Tickets </li></ul><ul><li>Motor Vehicles </li></ul><ul><li>Car Leases </li></ul><ul><li>Car Parts </li></ul><ul><li>Cars </li></ul><ul><li>Motorcycles </li></ul><ul><li>Boats </li></ul><ul><li>Travel </li></ul><ul><li>Lodging </li></ul><ul><li>Cruises & Vacation Packages </li></ul><ul><li>Timeshares </li></ul><ul><li>Real Estate </li></ul><ul><li>Residential & Vacation Homes </li></ul><ul><li>Commercial Real Estate </li></ul><ul><li>Rental Units </li></ul><ul><li>Business </li></ul><ul><li>Overstock, returns, end of life items, equipment </li></ul><ul><li>Household Items </li></ul><ul><li>Jewelry & Watches </li></ul><ul><li>Antiques, Art, Coins, Stamps & Collectibles </li></ul><ul><li>Clothing & Toys </li></ul><ul><li>Electronic, Music & Photography Items </li></ul><ul><li>Furniture & Appliances </li></ul><ul><li>Bicycles </li></ul><ul><li>Books, Music, Videos </li></ul><ul><li>Memberships </li></ul><ul><li>Gift Certificates & Gift Cards </li></ul>Anything That Can Be Sold Online Can Be Sold or Liquidated Through Our Stores
  9. 9. How We’re Positioned in the Marketplace <ul><li>Unique nationwide ‘clicks & mortar’ stores provide an entry point to the Internet </li></ul><ul><ul><li>Gives everyone an easy way to sell online </li></ul></ul><ul><li>Primarily sell on consignment </li></ul><ul><ul><li>Helps keep costs low </li></ul></ul><ul><li>Clear, singular focus on finding merchandise </li></ul><ul><ul><li>Rely on eBay and other websites to deliver buyers </li></ul></ul><ul><li>Strong foundation to capitalize on future opportunities </li></ul><ul><ul><li>World-class enterprise technology platform </li></ul></ul><ul><ul><li>Strong brand & awareness </li></ul></ul><ul><ul><li>Ability to leverage the network across vendors & customers </li></ul></ul>
  10. 10. How an iSold It Store Works (2) Create Listing & Attach Photographs (3) Sell it Online & Answer Bidder Questions eBay & Other Sites (4) Process Transaction & Send Seller Payment iSold It HQ (5) Pack & Ship Merchandise to Buyer (1) Identify Merchandise Households Charities & Fundraisers Businesses
  11. 11. Revenue Streams <ul><li>Households </li></ul><ul><ul><li>Neighborhood walk-in traffic </li></ul></ul><ul><li>Businesses </li></ul><ul><ul><li>Liquidation, close-outs, overstocks, etc. </li></ul></ul><ul><ul><li>Car dealerships </li></ul></ul><ul><ul><li>Returns </li></ul></ul><ul><li>Charity & fundraiser drives </li></ul><ul><ul><li>Get members to drop items & proceeds go to charity </li></ul></ul><ul><li>Source your own new & used items </li></ul><ul><ul><li>Get to keep commission & seller check </li></ul></ul>
  12. 12. Margin Streams <ul><li>Sales commissions </li></ul><ul><ul><li>Franchisee sets the commission, but we recommend 30% </li></ul></ul><ul><ul><li>Flat fees on wholesale cars </li></ul></ul><ul><li>Packing & materials fee </li></ul><ul><ul><li>Franchisee sets, but we recommend $5 average above cost </li></ul></ul><ul><li>Discounts on shipping rack rates </li></ul><ul><ul><li>FedEx national rates as much as 50% discount </li></ul></ul><ul><li>Margin on your own items </li></ul><ul><ul><li>Get to keep commission & profit </li></ul></ul>
  13. 13. How the Transaction Flows <ul><li>Each store operates under a unique eBay ID </li></ul><ul><ul><li>Good or bad feedback stays at the store level </li></ul></ul><ul><ul><li> [example] - iSOLDIT.AZ236 </li></ul></ul><ul><li>All stores operate under a standard iSold It template </li></ul><ul><ul><li>Customize with specific store info </li></ul></ul><ul><li>All funds flow into your PayPal or Merchant account </li></ul><ul><li>Seller checks are cut on your checking account </li></ul><ul><li>Royalties are electronically swept from your account </li></ul><ul><ul><li>Only pay royalties on ‘funded bids’ – not shipping & handling </li></ul></ul><ul><ul><li>4% royalty on funded bids </li></ul></ul><ul><ul><li>2% royalty on funded bids goes into the Ad fund </li></ul></ul>
  14. 14. Drop-Off Store Competitive Set 80+ franchised stores open Limited HQ support due to AD model 10+ franchised stores open HQ processing w/ one eBay ID 50+ franchised stores open Looks nice, but not much “meat-on-the-bones” UPS store strategy flawed Current model is focused on b2c strategy 300+ across the country Garage level execution limits their success INDEPENDENT DROP-OFF STORES
  15. 15. We’re Creating Barriers To Entry <ul><li>First Mover Advantage </li></ul><ul><ul><li>Owning #1 </li></ul></ul><ul><ul><li>Getting best locations & strategic partners </li></ul></ul><ul><li>Marketing </li></ul><ul><ul><li>Investing heavily to build awareness & traffic </li></ul></ul><ul><li>Technology </li></ul><ul><ul><li>Investing heavily in software and support </li></ul></ul><ul><li>Innovation </li></ul><ul><ul><li>Expanding beyond eBay </li></ul></ul><ul><li>Storefronts </li></ul><ul><ul><li>Creating national brand recognition at the local level </li></ul></ul><ul><li>National Accounts </li></ul><ul><ul><li>Leveraging our national footprint with retailers & manufacturers </li></ul></ul>
  16. 16. Vision For The Future
  17. 17. 2006 Merchandise & Channel Growth Large Items, Tickets & Dealer Cars Current National Accounts for Return & Trade-in Programs 2006 Reverse Logistics Solutions Auction Sites Small Items Current Summer 2006 b2c Overstock & Liquidation Items Fixed Price e-Commerce Sites
  18. 18. Besides eBay, Amazon etc, our software automatically creates your own ecommerce store front for selling fixed price items on the Internet directly to the public
  19. 19. What Does the Future Hold? <ul><li>Buy it Online/Return it Local - Customers have a physical location to return merchandise bought online. </li></ul><ul><li>Classified Ads – Customers place their ads on a classified site, then drop it off at an iSold It store. Interested buyers would have all-day access to see the item. The store could also accept a credit card for payment, then issue a check to the seller. </li></ul><ul><li>Trade-In Programs – Offer immediate payment on a gift card for specific categories of items. </li></ul><ul><li>Purchase Inventory for Resale – Purchase liquidation merchandise and selling it online. </li></ul><ul><li>e-Commerce Services – Co-brand with major Internet sites to offer additional Internet related services. </li></ul>
  20. 20. Marketing Your iSold It Store
  21. 21. The Power of a Brand Leader We are investing to build our brand today, for dividends that will pay well into the future <ul><ul><li>1 st choice for sellers and buyers </li></ul></ul><ul><ul><li>A trusted source for higher value transactions </li></ul></ul><ul><ul><li>Leverage in vendor relationships </li></ul></ul><ul><ul><li>Preferred partner for national contracts </li></ul></ul>
  22. 22. 2006 Major Consumer Marketing Programs <ul><li>2006 National TV & Radio </li></ul><ul><ul><li>New TV ad </li></ul></ul><ul><ul><li>2006 3 TV campaigns & 2 radio </li></ul></ul><ul><li>2006 Sunday coupons </li></ul><ul><ul><li>33+ million circulation each </li></ul></ul><ul><ul><li>3 planned in first half 2006 </li></ul></ul><ul><li>Matching Advertising Funds </li></ul><ul><li>(877) I-SOLD-IT </li></ul><ul><ul><li>Toll-free store locator </li></ul></ul>
  23. 23. Public Relations Examples
  24. 24. Local Store Marketing Templates <ul><li>Grand opening promotions </li></ul><ul><ul><li>Flyers, banners & party invitations </li></ul></ul><ul><li>Val-Pak co-op mailers </li></ul><ul><ul><li>Easy-to-use customizable templates </li></ul></ul><ul><li>Newspaper & Money Mailer templates </li></ul>
  25. 25. Local Store Marketing Templates (cont’d) <ul><li>Local radio & TV </li></ul><ul><li>Direct mail postcards </li></ul><ul><li>Fundraising drives </li></ul><ul><ul><li>Complete kits available </li></ul></ul><ul><li>Custom marketing support </li></ul><ul><ul><li>Car wraps, billboards, bus benches, etc. </li></ul></ul>
  26. 26. In-Store Marketing <ul><li>Tri-fold brochures </li></ul><ul><ul><li>Incl’s area for store stamp </li></ul></ul><ul><li>In-store promotions </li></ul><ul><ul><li>Counter cards (ex. tickets) </li></ul></ul><ul><ul><li>Hand-out flyers (ex. large items) </li></ul></ul>
  27. 27. In-Store Materials <ul><li>Window posters </li></ul><ul><li>Wall pieces </li></ul><ul><li>Menu boards </li></ul>
  28. 28. New Consumer Profit Centers <ul><li>Guaranteed Price Program </li></ul><ul><ul><li>Immediate Valuation for Consumer: no guessing </li></ul></ul><ul><ul><li>5 Categories: Entertainment Media, College Textbooks, Specialty Bikes, Golf Equipment & Cameras </li></ul></ul><ul><ul><li>Also can be offered to businesses as trade-in programs </li></ul></ul><ul><li>Customer retention marketing </li></ul><ul><ul><li>Seller check coupons </li></ul></ul><ul><ul><li>Outbound seller emails </li></ul></ul><ul><ul><li>Direct mail postcards </li></ul></ul>
  29. 29. Additional b2c Profit Centers <ul><li>2006 Objectives </li></ul><ul><ul><li>Integrate iSold It within the liquidation / reverse logistics industry </li></ul></ul><ul><ul><li>Develop strategic partnerships with retailers, manufacturers and liquidation partners </li></ul></ul><ul><ul><li>Work with franchisees to develop store competencies and infrastructure </li></ul></ul><ul><ul><li>Solely focused on finding merchandise for franchisees </li></ul></ul><ul><li>b2c Merchandise Sources </li></ul><ul><ul><li>Overstocks & Returns from major “big box retailers”. </li></ul></ul><ul><ul><li>Manage return to vendor programs </li></ul></ul><ul><ul><li>Local b2c suppot with collateral materials </li></ul></ul><ul><ul><li>Local b2c prospect lists </li></ul></ul>
  30. 30. Backroom Store Support <ul><li>Forms </li></ul><ul><ul><li>Customer terms & conditions </li></ul></ul><ul><ul><li>Express Drop-off form </li></ul></ul><ul><li>iSold It logo stationary </li></ul><ul><ul><li>Letterhead & business cards </li></ul></ul><ul><li>iSold It logo uniforms </li></ul><ul><ul><li>Hats, shirts, jackets, aprons, etc. </li></ul></ul>
  31. 31. Support & Training
  32. 32. <ul><li>In-house real estate dept coordinates with local brokers nation-wide </li></ul><ul><li>We’re looking for very typical locations located right in your neighborhood </li></ul><ul><ul><li>Located in a highly visible strip center </li></ul></ul><ul><ul><li>Ideally located in a strip center adjacent to a grocery store or drug store </li></ul></ul><ul><ul><li>National co-tenants (i.e., Starbucks, Kinkos, etc.) </li></ul></ul><ul><li>Requirements </li></ul><ul><ul><li>Minimum 1,200 to 1,500 square feet </li></ul></ul><ul><ul><li>Minimum 15 feet of frontage </li></ul></ul><ul><ul><li>Easily accessible with parking at the storefront </li></ul></ul>Real Estate & Site Selection
  33. 33. <ul><li>In-house construction dept coordinates initial store layout & ordering your ‘Store-in-a-Box’ </li></ul><ul><li>Complete turn-key ‘Store-in-a-Box’ installs in 48 hours </li></ul><ul><ul><li>Counters, cabinets & shelving </li></ul></ul><ul><ul><li>Computers & software </li></ul></ul><ul><ul><li>Graphics & signage </li></ul></ul><ul><ul><li>Supplies </li></ul></ul><ul><li>Creates consistent image across all stores </li></ul>Store Construction
  34. 34. <ul><li>Initial Start-up </li></ul><ul><ul><li>Coordinates your initial training at HQ & training store (8 days) </li></ul></ul><ul><ul><li>Sets up eBay & other accounts </li></ul></ul><ul><ul><li>Provides full set of operations manuals </li></ul></ul><ul><li>On-going operations </li></ul><ul><ul><li>Field based district managers </li></ul></ul><ul><ul><li>Follow up WebEx online sessions </li></ul></ul><ul><ul><li>Sends weekly email newsletter updates </li></ul></ul><ul><li>Annual franchise convention </li></ul><ul><ul><li>Next convention this June </li></ul></ul><ul><ul><li>Attend convention then eBay live </li></ul></ul>Operations & Training
  35. 35. What eBay Says About iSold It “ Like eBay, you have a really good idea and great execution .” “ You are way out in front .” Meg Whitman, eBay CEO, at iSold It’s 2005 Franchise Convention
  36. 36. Our Commitment To You We will always be the most innovative, fastest moving, best run company in the drop-off store category. Call 626-739-9222 to arrange the next step in opening your own iSold It store