Blue Moon Estate Sales Wins Franchise Times Zor Award as Top Brand to Buy

Winner: Blue Moon Estate Sales USA

Finalists: DoodyCalls and Fastest Labs

“After I did the research, it was clear to me that no one was doing estate sales the way Blue Moon was,” said franchisee Tracy Duce. The competition, she said, is dominated by the “hobbyists and antique collectors,” and she saw the value in the technological sophistication and business rigor Blue Moon is bringing to the estate sales industry.

Blue Moon’s business model is straightforward. Franchisees are responsible for sourcing, staging and running estate sales, typically out of their clients’ homes. Duce cited the brand’s loyalty program—yes, there’s shopper rewards for estate sales—and digital marketing as examples of the brand’s innovations. She said the company’s SEO strategy and targeted marketing are particularly powerful for finding new clients. While such tactics are common in other industries, they’re especially powerful if the competition isn’t using them.

Bill Rickman, another Blue Moon franchisee, described a group of “estate-sale people” who make a whole weekend out of hitting every sale in their area. He said Blue Moon’s loyalty program gives him a direct line of communication to those people and helps incentivize them to come to his sales over any other.

Duce and Rickman took different paths to franchise ownership. The flexibility of the business was a big draw for Duce, who with two young children sought a concept with operations that would allow her to work on her schedule. Without a storefront to tend to or rigid operating hours, Blue Moon offered her that flexibility.

A self-described minimalist, Duce said she’s never been tempted to buy anything at the sales she runs. Rickman, although he stopped short of calling himself an estate-sale person, said he enjoys them and other treasure hunt-type stores. A serial entrepreneur who was also a Tutor Doctor franchisee and spent several years as a franchise business consultant, he said he was looking for his “last” business when he discovered Blue Moon, and that his enjoyment of the industry was a big factor in his decision to buy a franchise.

The winner in the Affordable Entry category, Blue Moon has an initial investment range of $69,840 to $80,850, the lowest of the three finalists. Its royalty fee is 5 percent, compared to 7 percent for Fastest Labs and 7.5 percent for DoodyCalls. Average gross sales are $419,492 for franchisees who conduct 20 or more estate sales per year.

No storefront also means minimal overhead, something Duce said made the brand particularly attractive. She launched her Minneapolis franchise in August 2020 and didn’t want to take the risk of signing a commercial lease during the height of the COVID-19 pandemic.

Rickman, whose franchise territory is in Toledo, Ohio, said the key to success with Blue Moon is running a lot of sales. So much so that in early 2020, when he had just launched the business, he said he ran smaller sales than he otherwise would and waived part of his minimum take so he could attract clients and get his name out there. In 2021 he held about 80 sales and earned rookie of the year honors from his franchisor.

Minimum take refers to the minimum cut a Blue Moon franchisee earns from an estate sale. Rickman takes the first $3,000, and the rest is split according to the arrangement with the client. Duce said she started at $3,000 but recently raised her minimum to $4,000 and was surprised there was no pushback on the price increase. She aims to do at least $10,000 from every sale, achieving a neat 60/40 split between the client and her business.

Duce ran 63 estate sales in 2021, with $570,000 in sales. She owns three territories and plans to launch in the remaining two during 2022, which will help her hit her goal of 110 estate sales and $1.1 million in total sales for the upcoming year.

The other key to success? Commercial partnerships. Both franchisees said they work closely with realtors. It’s a mutually beneficial partnership—estate sales draw crowds, and everyone walks past a big “for sale” sign on the lawn on the way in.

Pricing an estate sale can be tricky, but Blue Moon makes a lot of resources available, and Rickman said he hires people to fill in the gaps in his knowledge. The best way to find diamonds in the rough? “The uglier the better,” he said. “If you find an ugly doll that’s old, chances are it’s worth money.”

The two operators gave conflicting advice to prospective franchisees. Rickman advised those considering a franchise to do something they’re passionate about, while Duce said to “choose an industry because it works,” not because you love it.

With Blue Moon, it’s clear there are many paths to success.

Blue Moon Estate Sales USA

Positives

• The lowest investment range of the three finalists, $69,840-$80,850, plus minimal overhead.
• Franchisees say there’s a tremendous sense of community throughout the company, with other owners always willing to lend a hand or offer advice.

Use Caution

• Starting out can be tough. Franchisees can expect to work long hours and hustle to find sales, particularly during the first year.

Based in Cary, North Carolina, Blue Moon Estate Sales offers comprehensive estate sales services. Founded in 2009 by Ken and Deb Blue, the brand has expanded to 40-plus territories—including 16 openings in 2020—and has plenty of room left to grow.