Online auctioning gains
a Philadelphia store front

By William Kenny
Times Staff Writer

W hen a marketplace generates some $40 billion in annual sales for its vendors, it stands to reason that there should be plenty of profits to go around.
Even if the marketplace is not an actual place at all, but rather the eBay online auction house.
A Northeast Philadelphia-based businessman thinks he’s found a way to claim a healthy chunk of that loot by giving cyberspace a real-life storefront.
Father and son Jerry and Matt Gibboni opened their Imagine This Sold shop on Dec. 1 in the Grant Shopping Center, 1900 Grant Ave. The place is a clearinghouse for new and used items of value supplied by local folks looking to earn a few bucks from their no-longer-wanted possessions, such as musical instruments, audio-visual equipment, collectible toys, sports equipment, designer clothing, fine art, antiques and even automobiles.
The elder Gibboni, who is president of the Huntingdon Valley-based parent company, ITS Master Development, expects the local store to be the first of many locations that he and his investors will open or franchise across the country in the coming months and years.
"We want to have three-to-four hundred within five years," he said. "Optimistically, we think we can do that in the first year, but we don’t want to be too optimistic."
ITS already has six locations up and running. Four are in Canada and another is in Bay City, Mich. Twelve more "company" stores are in development, including two in Pennsylvania and others in Florida, Tennessee and Nevada, Jerry Gibboni said.
Matt Gibboni manages the local flagship store.
Having already negotiated a deal with eBay to use the popular online auction’s name and logo, the Gibbonis believe that ITS is on the forefront of a rapidly growing industry.
"According to an article in USAToday recently, (eBay sales) are still growing 53 percent quarterly," Jerry Gibboni said.
The idea for a walk-in online auction agency is not new. When asked where he got the idea for the business, Jerry Gibboni replied matter of factly and with a smile, "Somebody else."
Gibboni is an experienced franchiser with several area Subway store sales on his resume. When he heard about a Toronto-based company doing the eBay concept, it piqued his interest.
"We researched it and found that there’s six-or-seven hundred stores out there who have already tried it," he said.
Most of the stores are on the West Coast, however.
"I liked (the idea) because it’s not your own inventory that you’re selling," he said.
Gibboni and his partners bought the Canadian firm and its four existing locations. They didn’t even have to change the name.
"We’ve become the franchise," the company president said. "We bought the rights to (it) worldwide from them."
The company markets itself to clients as a simple, no-hassle, three-step process: "Stop at our store. Drop off your items. Collect your check."
Behind the scenes, Matt Gibboni and his five-member staff research the potential market value of each item brought to them, write up a product description and take professional digital photographs to be posted on the eBay site.
The minimum projected value for any auction item is $50, though the bidding generally starts at $9.99. Imagine This Sold offers a variety of packages with varying auction options and fee structures.
Most auctions last a week. After the high bidder is identified and the sale price is received, Imagine This Sold will ship the auction item professionally, via UPS or Federal Express, to the buyer.
A check goes out to the seller within three or four weeks. According to ITS’ fee structure, sellers will pay from 20 to 32 percent of the sale price of their item in fees. The buyer is responsible for all shipping costs.
According to Jerry Gibboni, his company’s competitors generally charge 25 to 40 percent, although "in this area, there really is no competition. We’re the first in the Philadelphia area."
They’ve learned some things from studying similar stores in other areas, however.
"What we’ve learned is that you have to advertise and have to be consistent," Jerry Gibboni said.
They’ve also learned that professionalism and attention to detail can go a long way toward attracting customers and repeat customers.
The model ITS store is about 1,200 square feet, with a lot of open space, high-top counters, several computer stations, bright lighting and a clean appearance.
Franchises cost $250,000 to open and under $75,000 a year to operate. The potential for profit is really up to the diligence of the individual franchisee.
"With very little overhead in a store like this, you don’t have to make a lot (in sales to reach a profit)," Jerry Gibboni said.
Meanwhile, for auction item sellers, a short visit to the ITS store can save them time and trouble when compared to doing it all on their own.
"With most people, both the husband and wife work today and by the time they come home and take care of the kids, they don’t have time to do it," Jerry Gibboni said. "We make it convenient for them." ••
For more information about Imagine This Sold, visit www.imaginethissold.com or call 215-673-4063.
Reporter William Kenny can be reached at 215-354-3031 or bkenny@phillynews.com