have noticed a local auspost franchise is for sale in our town at a good price making me think there is not a lot of money to be made does anyone have experience with this and if so how much profit is in it roughly thanks.
Aus Post Franchise
stevednj48 on 05/06/2014 - 12:29
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how much is it?
How do you know it is a good price if you don't know how much it makes?
its 300,000 but also includes a residence
and a hell of a lot of work.
Might be worth as an investment. Run it for a few years, sell the it off in 2020 and make a profit.
I know that's what happened to the one at my university. New owners took over after the previous ones decided it was time to call it. Made a few hundred thousand they say. Not sure how long they held on to it though, but that particular post office was raking in the dollars (only one on campus, sold everything from movie tickets to usb and R4 roms, everything a uni student needed).
I know a family friend who had an Aust Post franchise. Location is very very important. The spot their shop was in was on a quiet street on the border of the CBD. They struggled and end up selling it for a either no profit or near loss I believe.
this one is in the main st of a town of 1500 people nearest post office is 30 mins aways it is always busy
Hey there
I help a lot with business valuation, for retails you normally can get 1.5 - 2.5x of your adjusted net profit figure.
Judging by your explanation, location, etc etc, it could perhaps punch 2 - 2.5x of the adjusted net profit.
I have also a few friends who own post office and some of clients run a post office / newsagency. Profit varies on how big is your floor space for displays and foot traffic.
Noone can say, if you are serious about it, best if you go in there, talk with them and do a due diligence with your accountants / business valuer.
$300k sale, that's before negotiation, I think you could probably settle for $250 - $275k, which brings the adjusted estimated net profit to $100k.
if you were to loan the whole purchase price, that's $15k to the bank, so this business will give you about $85k net (assuming you are doing everything yourself).
Best for you to crunch some numbers.
No use asking for public opinions, post office in a busy mall will worth shitload more than a post office in a small town, regardless whether the next post office is 1 hr away.
Cheers
Also, every once in a while, cant remember every how many years, they will require you to refurbished your shops…. and it isn't exactly cheap.
You need to take into account the Australia Post contract.
They may have some less savory obligations bundled in. eg you may be required to complete the local to door deliveries which include remote farms.
This is just an example but say you decide it would be profitable and could pay your wage. Now you find you must complete conflicting tasks that require you to hire an additional person and suddenly your wage has disappeared.My parents town was a bit the other way around. the parcel contract was removed from the post Office contractor to make the 'area' parcel post contract more attractive. The post Office contractor now had to drive 200kms each day to pick up
a dozen enveloped letters, without the parcel post the trip wasn't viable. The town lost it's post office.thank we have decided not to go down the path as auspost is losing at the moment will prob get worse.
I thought australia post belongs to the govenment?
They do, but agencies are not run by Aust Post.
There's a recent thread here: https://www.ozbargain.com.au/node/144745