franchise set-up costs
a financial commitment to your own future
initial franchise fee
The franchise fee gives you exclusive rights to operate an expost Mail Centre within a postcode defined territory for five years. It covers the cost of training, IT hardware, specialist equipment, sales & marketing, a whole year's worth of consumables, software and ongoing system development.
Accommodation addresses in Manchester or the City of London, for example, are always going to be more in demand than those in Carlisle or Hereford, so our franchise territories are divided into three categories; Local, Prime and Prime Plus, to reflect their relative revenue potentials.
The initial franchise fee is payable once only and there are no annual licence charges.
( review the comparative costs of each UK Mail Centre location in the franchise territories page )
franchise renewal fees
Once you have established and operated a profitable Mail Centre for five years, of course you will want to renew! At the end of the contract, the most you will have to pay for a further five year term is 25% of the initial franchise fee.
on-going & sales related costs
sales commission (royalties)
Our on-going income is limited to the commission we charge on account sales and mail handling. . . we only benefit when you succeed!
Even though all marketing, advertising, sales, customer support and administration is handled exclusively by our team at Philbeach on your behalf, we only retain 30% ( + VAT ) of the account fees, with the balance credited to your account at the end of each trading month. We apply a similar royalty rate to the retail price of mail handling fees and surcharges.
If you operate your expost Mail Centre yourself, from home, you may have no additional workspace or staff related outgoings whatsoever in the first year.
a word about insurances...
Whatever business you run, some form of commercial insurance is advisable and, in some cases, required by law. Mail held at your centre must be insured at the rate of £1 per letter, £2 per large letter and £10 a parcel. . . plus a minimum of £8,000 all risks cover on your computer hardware and mailsort furniture.
If you wish, we can refer you to our Philbeach insurers, who already understand the business and will be happy to provide you with a quote.
The largest operational cost is, by far, the cumulative postage and courier charges incurred when forwarding your customers' mail.
But you don't pay them! Whether you are forwarding a letter to Southampton via the Royal Mail, or despatching a 20Kg parcel to South Africa by DHL, UPS or Parcelforce, the costs are all covered by our credit accounts!
. . .call our development team for more information on 0333 789 0011
earnings & income
there are two main revenue streams
mailbox account fees
The sale of new customer accounts, and their subsequent renewal, constitutes the primary revenue stream for your business.
With an average income to the Mail Centre of £120 per account sale ( net of Royalties and corrected for the sales mix ), just one sale per day represents net earnings of £2,500 a month.
As your Mail Centre accumulates active accounts, the revenue arising from mail handling fees, scanning, surcharges and commercial rebates on postal charges will continue to grow proportionately.
You can expect the operational income of your Mail Centre to evolve from around 30% of total revenue in the first year to more than 70% of that generated by account sales and renewals by year 3.
billing & reconciliation
ProPost incorporates a comprehensive accounting module that keeps track of every letter and parcel you handle, every customer credit, royalty payment, transaction fee and surcharge. . . then uses this data to maintain a real-time, fully itemised, statement of account.
At the end of each month, the net revenue due is transferred from expost's client account, directly into your real-world bank.