Nashville - 16 January, 2006 -

True to the Merriam-Webster definition of its forename, Snappy Auctions has been "quickly made" a flourishing franchisor of eBay drop-off stores. Still four months away from celebrating two years of franchising, Debbie Gordon, president and CEO of Snappy Auctions, has contracts on 100 locations with 50 already up and running. Jeff Cornwall, director of the Belmont University Center for Entrepreneurship, says Snappy Auctions is franchising "much, much faster than normal." He says most companies grow geometrically, starting with a handful of franchises and doubling the number from year to year. Having studied Snappy Auctions' development, Cornwall says the key to its success has been its computer system, which can be accredited to Gordon's experience in technology consulting. "Usually I worry about franchises growing that rapidly because they add on huge overhead expenses. Because hers is technology-based, she doesn't have that," Cornwall says. Products on the shelves of a Snappy Auctions store are only up for grabs to buyers in the world of online auctioneer eBay. Customers bring in their goods and Snappy sales staff manages the process from starting bid price to pay-out. And Gordon's custom-made software is what makes the process a breeze. She says most locations can operate with fewer than two full-time employees. The system helps the salesperson determine the item's value based on the market demand and even the best day to kick off the bidding. In exchange, customers fork over between 15 and 35 percent of the sale, depending on the price of the item. Gordon says this arrangement works because sellers don't "want to put up with all the hassles" of selling on eBay. When Gordon got the idea for Snappy Auctions, she says only 2 percent of registered eBay users were sellers. And buyers "are more likely to bid on our items than someone who hasn't sold much," she says. Snappy Auctions is a registered trading assistant with eBay, which allows it to have use of the Web site's logo in exchange for maintaining specific selling standards. Gordon says franchisees need not worry about turning a profit because more than 70 percent of sales are from return customers - a marker of success most good businesspersons go after. "The important thing is to set people's expectations, so that they're happy with the outcome," Gordon says. And having happy customers is crucial to Snappy Auctions Corporate's ability to turn a profit, as well. "Our revenue as a franchiser is really based solely on royalties, so we have to do everything we can to make them successful," Gordon says. "Rather than just front-loading our revenue and setting them free." A total investment between of $50,000 and $60,000 will get a franchisee on its feet, $25,000 of which goes to Snappy Auctions Corporate. But not all that inquire get the go-ahead from Gordon. Only about 20 percent of the applicants have been awarded a franchise. She says she holds out for "textbook entrepreneurs" - risk-takers, early adopters, visionaries and self-motivators. "We have people who are retired Fortune 500 CEOs to former military people to former stay-at-home moms to a group of owners in Atlanta who are 23 and just decided to leave one of the Big Four accounting firms for a year to do their own thing," she says. But interested parties have options, too. Snappy Auctions doesn't have a monopoly on the eBay assist market. West coast competitor ISold It hit the 150-franchise mark this year. "We're not trying to be the biggest. We're trying to be the best, and we're doing a good job at it. Our technology is proprietary," Gordon says.

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