Reclaiming the Resale Experience: The Power of Physical Electronics Trade-Ins

In an era where digital transactions increasingly dominate the resale market, a burgeoning electronics resale chain is demonstrating the enduring value of brick-and-mortar locations. This month alone, its franchise partners are set to open 18 new stores, with ambitious development deals projected to expand the chain to nearly 600 outlets within the next five years.

This growth began two decades ago as a single secondhand shop on Long Island, has now garnered international attention. Its first European store recently opened in Luton, England, near London, and the co-founders recently engaged with potential franchisees from over a dozen countries at a major expo in Paris.

While the company also maintains a robust online channel, its co-founders emphasize that local stores, where consumers can trade in used electronics for instant cash, are fundamental to their business model's success. Their experience has shown that customers prefer to sell their electronic devices in person. They appreciate having a clean, organized, and technologically supported environment where their personal data is securely wiped, and they receive immediate payment.

"The customer likes dealing with someone who is educated, someone that’s treating them fair, someone that buys a wide range of electronics and then they get cash on the spot - everyone loves that," remarked one of the co-founders.

These stores specialize in buying and selling a vast array of electronics – "anything that you can plug in or put a battery in, we’ll buy it – From today’s hottest electronics to yesterday’s favorites to everything in between, we’ll buy it."

A proprietary technology platform, developed by one of the co-founders, provides franchise operators with real-time data on current resale market values, enabling them to offer competitive prices. This technology also streamlines the process for local operators to resell devices, whether through the company's online site, other resale platforms, or directly in-store.

The co-founders initially ventured into the secondhand business in 2004 with a general consignment store. They quickly identified that electronics yielded significantly more profit than other merchandise. Customers frequently expressed their appreciation for having an alternative to trading in pre-owned phones or laptops at traditional electronics retailers. This observation, coupled with a desire to elevate the secondhand experience beyond cluttered, inefficient pawnshop environments, led them to create a model focused on clean stores in prime locations, staffed by trained professionals capable of completing transactions in minutes.

"We’ve digitized most of the record keeping that needs to happen," stated one co-founder. "We’ve sped up the transactions nearly 600%," reducing the average transaction time from 50 minutes in a typical secondhand store to just 6 minutes. This efficiency means customers "are not awkwardly standing there to see what we are going to give them," as staff have pricing information readily available at their fingertips, eliminating delays.

The company boasts an impressive repeat customer rate of approximately 75%, significantly higher than the secondhand industry average of about 7%. "We’ve 10x-ed the experience and we’re just getting started," a co-founder added. The sophisticated tech platform also incorporates features that allow store operators to verify serial numbers and cross-reference police alerts, helping to identify potentially stolen items.

The relatively low cost to open and operate one of these stores is a key factor driving demand for new franchise locations. The brand began offering franchises in 2020. The franchise fee for a store is $35,000, in addition to a fee for using the tech platform and a royalty on sales. Average startup costs range between $140,000 and $260,000, with the average store generating over $1 million in gross sales.

Beyond commerce, the company is also making significant contributions to sustainability by recycling devices that cannot be resold. The company processes almost a million pounds of e-waste annually, diverting it from landfills.

"We wanted to disrupt the secondhand world on the retail side and really be the specialist in electronics, especially the pre-owned side of electronics," explained a co-founder. "We’ve combined brick and mortar retail with technology, data, and e-commerce.”

Curious about tapping into the success? Contact us to learn more.