Now with a free ebay auction drop service
Putting the internet into the heart of its business, Cash Generator is introducing a new ebay/CG Net Auction Drop service to further improve its franchisees' business propositions. Best of all, it isn't costing franchisees any initial fees! MD Julian Urry discusses the initiative
No. of franchisees: 80+ stores
Franchise fee: £19,950
Franchisee profile: Good communicator with drive/enthusiasm and a welcoming personality. Must be hands-on and a quick learner.
Year established: 1994
Year franchised: 1997
Priority recruitment territories: New franchises available nationwide.
TWO SERVICES OFFEREDThe franchisor is also making a very large capital investment in designing our own ebay/Cash Generator internet auction site. Having our own successful auction site means we can offer our franchisees a service where we do not intend to charge any listing fees whatsoever, and therefore maximise each franchisee's profits on all sales done on our own auction site. But as a backup the new software will enable an easy transfer to the ebay auction site if the item fails to sell quickly on our own hosting channel. This gives each store two bites at the cherry and provides a simple process to maximise results.
THE COMPETITIONI know that stand-alone rival ebay auction stores in the UK have either closed or have been loss-making, but this is, I believe, because the market for a store selling people's goods for them on ebay and charging the customer a fee for the service does not at this moment produce enough customers to pay the costs of running the shop.
Indeed reports from the USA say that a similar problem of lack of demand may exist there, and many companies are therefore attempting to break into the business-to-business market to cover their fixed store costs. The challenge is that not all store owners are keen to approach companies asking them permission to sell their goods on an ebay site, plus owners hoped the business would be profitable without going to these lengths. Hopefully the market may grow in the future and help these stores do well.
In our case, every extra sale made on our auction site will add to the existing profits made by each franchisee. We are hopeful this will increase annual profits of a store by an extra £25,000-£35,000. This will be on top of the profits already generated at the store.
All in all, a fantastic add-on service for all franchisees to use.
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