Courier franchise costs & review
It’s undeniable that people are writing fewer letters in this day and age, thanks to the proliferation of online methods for contacting friends, loved ones and even employees and other important individuals. Text, Messenger, video calls and social media all have a part to play in the decline of the posted document.
Parcels, however, are on the increase. The Pitney Bowes Parcel Shipping Index for 2017 has said that in 2016 there was a 12 percent increase in parcel deliveries – around 2.5 billion were delivered that year. By 2021, assuming that growth continues in the way that it has been, there could be an estimated 3.9 billion parcels delivered in one year. All this means that buying a courier franchise can be a great business idea. Before settling on which company to buy into, however, it’s important to look at courier franchise costs and review them so that as a potential franchisee you’re sure you’re getting the best deal for your investment.
Why the growth in parcel deliveries?
Much of the impressive growth in parcel deliveries can be put down to the huge surge in online shopping. Approximately 87 percent of UK shoppers have bought at least one item online in the past year, with almost 20 percent of all retail spending taking place online.
That figure is only set to grow with more companies being set up that solely trade in the online space.
As well as this, new innovations in food delivery have meant that couriers are needing to expand their remit, bringing different vehicles into the fleet so that they can deliver food fresh from restaurants to customers who have ordered via apps such as UberEats and Deliveroo.
Then there is the regrowth in the UK’s economy. B2B sales are improving, and whilst there was a slump in the market it is now picking up well again, meaning that courier services are always in demand.
What is a courier franchise?
A courier franchise, or parcel delivery franchise, falls into one of two categories. The main difference is the size; the larger franchises will be depot-based, where the depot serves as a hub that all relevant parcels are delivered to, whilst the smaller ones will require the franchisee or their driver to visit someone’s home or a specific point to collect a parcel before taking it to be delivered elsewhere.
Each option has pros and cons, which is why it is important to look at courier franchise costs and review which one is going to be the best option for you.
What are the advantages of a courier franchise?
There are many advantages to buying a courier franchise. Of course, the usual benefits of franchise owning apply, including being able to work your own hours and having more freedom when it comes to what work you want to do.
On top of this, there is brand recognition. A name that can be trusted when it comes to a courier company is going to gain far more business than one that no one has heard of – which is why buying a franchise makes more sense than starting a courier business from the ground up. Customers want brand familiarity, and this is exactly what a franchise can give them.
The average cost for a personal services franchise is around £42,000. For many would-be franchisees this is a lot of money to spend on a venture that they are just hoping to try out, something they think they want to do but are unsure of. Courier franchises, however, start from around £6,000 and the only additional outlay on top of that is the purchase or lease of a van large enough to make the deliveries required. In addition, franchisees should always remember to take into account the on-going maintenance for these vehicles; it is essential that these costs are added to a budget sheet because without a vehicle, the business cannot make any money.
When looking at courier franchises it is also important to note that there is always the potential to expand such a business – another definite benefit over other franchises that are available. This sector is growing year on year, which means it may be possible to take on another driver, perhaps more than one, or you could purchase an additional franchise territory.
Experience can sometimes be a barrier to entry when it comes to certain franchise sectors, but this is not the case with a courier franchise. What is required is a hard work ethic and utter dedication to giving customers and clients the very best service (as well as a driving licence of course). After that, no additional courier experience is necessary, and franchisees can be up and running quickly after their initial investment and any training that is required of them.
Which franchises to buy?
With a low initial investment for many courier franchises and plenty of benefits, which options are open to those looking for courier franchise costs and review information online? There are many courier franchise opportunities available and the following include a range of prices and details to cover all eventualities.
InXpress has been operating since 1999 and is now found in 13 countries across the world. This company offers its franchisees a large amount of training (including top up training should it be required), all the marketing supplies and information that will be needed, plus a great support network. This all adds up to a 93 percent success rate for all franchisees.
An InXpress franchise costs £30,000.
Diamond Logistics franchise
Diamond Logistics have won awards for their exceptional services, which include options such as next day delivery, same day delivery and even international shipments. These three different income streams can all be managed by one franchisee, making Diamond Logistics a franchise with massive potential.
A Diamond Logistics franchise costs £25,000
Speedy Freight franchise
Specialising in same day and express freight delivery services, Speedy Freight can be a hugely profitable venture in the right franchisee’s hands. Once investment has been made, the franchisee will be given an impressive database of existing customers already in the territory that they will be dealing with, so they can start with plenty of warm leads while the colder ones take time to filter through.
A Speedy Freight franchise costs £38,500
World Options franchise
World Options is the ideal courier franchise for those who are dipping their toes into the franchising world, since 91 percent of franchisees are running profitable businesses. This could be partly because of the good reputation World Options has a courier and partly because of the innovative and unique software that is used to collate information and arrange pick ups and deliveries. There are very few overheads after the initial investment and business owners can work from anywhere.
A World Options franchise costs £12,000
Mail Boxes Etc franchise
As the name might suggest, Mail Boxes Etc was founded in America. What is impressive is that it was founded in 1980 and in the close to 40 years since, it has gained a worldwide customer base and a reputation for exceptional customer service. Due to this, there is extensive training that takes place for any new franchisee.
A Mail Boxes Etc franchise costs £25,000
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Source: Franchise UK
Courier franchise costs & review