Michael Whelchel
Killen, AL (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)
Estate Road Show Auctions LLC
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Startup
Location:
Killen
Industry:
Technology/Web
Year Founded:
2010
Number Employees:
1-10 people
Business Stage:
Growth (not profitable)
Entity Type:
Limited Liability Company
Description:
The eBayLive business reached $500+ million in sales prior to 2008 before eBay closed it (live auctions). We were using their system and became developers working with eBay under NDA's to improve their technology. After it closed, we redesigned a platform connected to their servers to bring back live auctions tapping into eBay's customers, called timed-snipe-live. Working closely and exclusively with T&S, and VP's at Vertical Markets our system is now the only approved way to tap into eBay's customer base for live auctions. Live auctions are a $280B marketplace according to the NAA. Because we have no auctioneer competition on eBay, we effectively are eBayLive. Our live auctions attract 7-10K bids per session and connect to other platforms like ArtFact, AuctionZip and live floor bidders allowing us to get top price for our estates and picking.
Our growth, prices and some home page (eBay) listings have attracted some large estates bringing our sales to almost $600k over the past 120 days. Meetings wtih VMarkets at eBay have shown an interest bringing back live auctions again with our model running them. While eBay is in the early stages of looking at such possiblities we have now proven that our model is generating much higher prices by combining several platforms and live bidders together. eBay wants to see our numbers reach $500k per month reaching diamond corporate level which will open up the door to postings on their front home page viewable to 85M per day increasing prices and attracting more large estates which normally go to large auction houses.
We need $200-$300k investment ( we just raised $100k) and we just signed a 5 year lease on buildings to support extra growth at $0 rent (equity deal). The money we raise would be used to buy estates, or pick from estates which we have been doing for over a decade with over 400,000 items bought and sold. Normally we earn a 50-100% profit from picking somewhat connected to our ipad connection to our research dept (telling us what to pay). To reach $500k per month it will take a combination of estates, picking and consignments. For example the current Jan estimate is $150k from large estates before picking. Our projected profit at $500k is $100k per month. Our only need is money for picking and estates. Our technology is paid for and we have the tools to process $500k worth of items each month. Once we are more fully branded we will pull the large estates from the competition and picking will not be needed, estimate that will take a few years. Home page on eBay for our listings will help us to brand timed-snipe-live and our live auctions. Other opportunities exist for franchising our platform to other large auction houses, several have expressed an interest.
Our platform uses eBay, eBay timed-snipe-live apps, live floor, ArtFact and AuctionZip (live) to reach bidders which normally gives us final prices +50-100% greater than normal eBay. Our long term goals are to capture a larger piece of the entire live auction estate market from conventional auctioneers.