;
  • Report:  #1383316

Complaint Review: DRSS - Las Vegas Nevada

Reported By:
Phil - Fairfield, California, USA
Submitted:
Updated:

DRSS
4505 West Hacienda Avenue Suite L-1 Las Vegas, 89118 Nevada, USA
Phone:
1 (800) 518-3064
Web:
N/A
Tell us has your experience with this business or person been good? What's this?

In 2013, a man named Roger introduced me to the dollar store concept. He represented the company DRSS ( Dollar Store Retail Services ). He pointed out that this was not a franchise, but, a business opportunity.   He also stated that he and his son were going to open a store themselves.  He told me that they had a great net income of 20% to 22% after expences. 

I was contacted by Paul Beck, an employee of Dollar Store Services, and we discussed the advantages of being an owner of one of their dollar stores. During our conversation, I asked the gentleman what kind of revenue I could expect to generate, and he told me the stores average $160 to $190 per square foot ( I have the email to prove it ). I was opening a 3000 square foot store, so I took the numbers he gave me, and I split it in the middle, at $175 per sqaure foot, and that totals $525,000 dollars per year ( Over a half million dollars per years ), or $43,750.00 per month. 

I did my due diligence, and figured my total rent, wages, taxes, electrical, insurance and all the costs associated with running the store, including replacing product for one year, and after all expences, we should have had a net income of approximately $116,250.00 for my wife and myself. After signing our contracts, Roger told me that he decided to back out of his deal.  Now this worried me but, I had already signed my life away to the biggest scam I have ever encountered.

John LaFronze, another employee or DRSS, told me that the average cost of product was .55 cents.  When DRSS built out our store, based on the manifest, John was correct, but, a huge portion of the product they put in our store was junk, that had a cost of .10 to .25 cents, and never sold an item. The product that did sell though, had an average cost of .65 to .89 cents, then you had to add .04 to .06 cents or more per item for shipping. If you bought a product for .75 cents, and added .5 cents for shipping, your cost would be .80 cents.  My bills were about $13,000.00 per month, which means, at .20 cents profit per item, I would have to sell 65,000 items per month just to pay the bills, and that does not include replacing product or wages for my wife and I.  

I was working a 100 per week, and my wife was working 70 to 80 hours per week, 7 days per week, and only had two days off in 15 months. They were Thanksgiving, and Christmas, and wre never took a paycheck for the 15 months we were open. Because we were digging the hole deeper, trying to keep the Dollar Store open, we ended up losing our 6 rental properties, and almost lost our auto repair business too. I have contacted about 40 other people that opened a Dollar Store through Dollar Store Services, and they have all either gone out of business, or are closing.

Ironically, the flagship store they used to show off their business opportunity, went out of business about two or three months after we opened our store. The name of the store was Dollar BEE, located at 7475 S. Eastern Ave., Las vegas, NV. 89123. The phone number was (702) 678-6011, but, it is currently disconnected, and the store has been closed for several years now. Kari Bourn, who was our class instructor, kept hyping up the dollar BEE store, stating how the owner opened and paid off his investment in the first year, but, yet he closed down within two years. Kari drove us to his Dollar BEE store to show off how well he was doing, and when we got there, the store was almost empty, and the cashier stated that the owner had gotten a job at a casino. About three months later, he was closed.

I have spoken to so many people that have opened a Dollar Store through DRSS, and the gone out of buiisness, that it would sicken you. I also have a list of about 30 people, with phone numbers and addresses that I have traced around the country, and not one is still in business. One young lady I found, had inherited A $100,000 dollars from her grandmother, And DRSS talked her into buying  aDollar Stroe, and she was out of business within 3 months. She had to file bankruptcy. If you would like to talk to me and want more information, feel free to call me at 707-372-8088 (cell), and I would be happy to enlighten you with all of the details of how this RIPOFF works.  Best of luck to you in all of your endeavors.

                                                                                                 Sincerely,

 



1 Updates & Rebuttals

John

Las Vegas,
Nevada,
United States
Owning a Business Takes Dedication

#2REBUTTAL Owner of company

Sat, March 05, 2022

We did develop this store for Phil.  At the time of this item being posted, we did file a lengthy response, but for some reason it has been deleted by Ripoff Report.  We provide to all of our store owners a simple program to assist them in opening and operating their stores.  We cannot guarantee success, because that is in the hands of the owner, however we do do everything we can do to make every store as successful as possible. 

To briefly address the example of the item he references that cost .75--we would never recommend buying at item that costs 75 to sell for a dollar, however every owner is independent and can make whatever decisions they choose to make. In training , we spend a lot of time teaching an owner how to track their purchases in order to maintain an acceptable AVERAGE cost of goods--some items cost more, some less, but in a well run store the average cost of goods is achieveable. 

Every owner is independent, and makes all final decisions: location, lease terms, approval of opening merchandise orders, etc.

I would be happy to speak with anyone who has questions or concerns regarding our Store Development program and the exciting Dollar Store business. 

Please call me directly at : 702-637-3389

respectfully,

John La Fronz

General Manager

Dollar Store Services

Reports & Rebuttal
Respond to this report!
Also a victim?
Repair Your Reputation!
//