Post Office Franchise

The post office franchise is a complex business to evaluate. Not only you are required to be trained for the service, but the cash flow is also tricky. Currently, the best place to open post office franchise is in Queensland. This maybe surprising after floods but the region has experienced a massive growth for a decade.

The cheapest are small town outlets but these can be financially difficult. Why? Because post office franchise must also run a news agency in order to profit. Unfortunately, small towns are not necessarily big on expensive magazines and the stationary. However, if you improvise you can turn countryside post office into a real "gold mine".

Post Office Franchise Guide

If you decided to own a post office franchise then do not just purchase the closest outlet from your home. Post office franchises are not uniformly priced. The difference between shops can be as high as $700K. Therefore, you need to prepare the plan to evaluate various franchises before signing any contract.

Post office franchise is a difficult operation. For this reason you should come with your accountant and meet the sellers. You have to be diligent and objective about the business analysis. If one post office franchise pays more for telephones and magazines than the other, you have to raise the issue.

Try to investigate the retail center (as a whole) in which the post office resides. Are there any shops for sale in the vicinity of the post office franchise. If so, then maybe the area does not attract customers any longer. Or, there is a general population shift away from the town. Try to purchase the post office franchise together with a news agency.

Alternatively, ensure that your post office runs in a close vicinity to the news agent. You will not make much from stamps and envelopes. Most people use emails, thus the direct mail is no longer a lucrative business model. However, you can diversify your business by providing internet access, A4-A3 printing formats and lottery purchases. These items are not always on the franchisor's list but certainly a very good business choice for your outlet.

Post Office Franchise Prices

The countryside post office franchise outlet sells for about $250K. In suburban locations, the price of the business is about $350K. Some franchises include the price of premises in the overall package. In this case, you can expect to pay $400K-$800K.

The city center post office franchises can even cost $1 million. However, the real value for money is the profit and loss statement of the individual outlet. As a rule of thumb, your investment should be repaid within 5 years of the post office operations.