Auction Mills Inc. Releases Stock Analyst Report.
A NEW PHENOMENON IN RETAILING IS SPREADING ACROSS THE COUNTRY LIKE WILDFIRES. These are the eBay auction drop off stores that provide individuals to sell all kinds of merchandise over the Internet conveniently. Auction Mills will be among the first public companies to provide this service, initially in Dallas, Texas, and ultimately worldwide.
The concept is rather simple. The individual brings the items for sale to the drop off store. Following the registration of the product, it is then photographed and offered for sale on the eBay auction site on the Internet, usually for a one-week period. If a sale is made a check is issued to the seller. The buyer pays the auction price and shipping costs up front and the company sends the product.
Under the company business plan, the item for sale must be worth at least $50 from which Auction Mills receives 38% of the proceeds up to $200. Fees decline on a sliding scale above that price level. If the item is not sold, a second week option listing is offered at no additional charge. Items not sold are either offered to charity or returned.
The company believes the communities served in its locations are afforded the convenience of a quick and easy method to sell merchandise as opposed to the complex way of doing it individually, which requires disclosure of personal financial information among other things. The computerized server and database system to be installed in each store will be a highly sophisticated hardware and software package providing all the needs of the operation with the ultimate in protection and speed.
In addition to store operation, Auction Mills plans to offer franchises. A typical franchise start up should cost around $50,000, including a $15,000 franchise fee, and a monthly 5% royalty on franchisee revenues.
eBay management estimates drop off stores will generate $10 billion in business in the next year. The company management forecasts over $1.5 million in revenues and $457,000 for the first year of operation. Adding this to the potential earnings from franchises, the company is on the launching pad for exciting growth potential.
Howard N. Stillman
This report should be read at your own risk. Howard Stillman was retained by Dissemination Services, LLC to produce an independent analysis of the company and was paid a fee of $2,500 for his services.
For more information about Auction Mills, Inc. and opportunities associated with owning your own Action Mills location: www.auctionmills.com
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|Date:||Jul 19, 2004|
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