Anyone own/owned a Aust Post biz?

Many a lifetime ago I used to have to go to the post office 10 times per week for work, and I became good freinds with the owners of my local PO. They bought theirs for like $200-$400k, and later sold it for $1m about 7-9 years later. New owner had 2 of them and was quite happy although his interest bill was quite high

I haven't really looked into them seriously but here is a few bits of feedback that ive heard/experienced, and was wondering if people could share as well.

- they are considered one of the safest franchises you can buy
- however you do pay dearly for them, 4 times net profit when other businesses are usually 1.5-3
- Hours arent the best but you still should get your 1-2 days off
- Emails have severly reduced the number of letters being sent

- How do they calculate profit? eg % of turnover
- How much do they make off someone paying a $100 gas bill?
- I guess unlike many other industries, you'd have to declare every bit of income and cant be naughty
 
Just from observation, I would think that the post office type business has a limited lifespan now, and possibly similarly with newsagents.

As the older (non-technological) folk die, there will be less and less people using the traditional forms of reading materials, sending letters, etc.

More people pay bills online, send emails etc.

Many people read books, newspapers and mags on their Ipads, this will only increase as a preferred way to do it.

The other sides to their business - office stationary etc might save them for a while, but this is heading down the meg-store direcrtion such as Officeworks.

There's only greeting cards, quick-picks and Tattslotto quick picks left.
 
There was a segment on ABC a few weeks ago talking about the difficulties of AusPost franchises now. Profits declining, some required jobs are paid so low that processing (time consuming) works out to be around $4/hr. Non-franchise segments undercut the franchises at losses, required stock in store is uncompetitive in pricing with the generally market. The example one franchisee gave was something like they have to stock this particularly printer for sale, costs $44 for them to buy, $49 to sell. Crappy margin, then the nearest non-franchise is selling them for $40. USB sticks twice the price of something from JB's? wtf?

Painted a picture of not-so good times for franchisees.

In regards to the future of AusPost? Who knows. Generally letters may be falling off the face of the earth, but sending packages is going to grow exponentially over the coming decades, thanks to buying online. If they can position themselves to be competitive in this market they will have a future.
 
There was a segment on ABC a few weeks ago talking about the difficulties of AusPost franchises now. Profits declining, some required jobs are paid so low that processing (time consuming) works out to be around $4/hr. Non-franchise segments undercut the franchises at losses, required stock in store is uncompetitive in pricing with the generally market. The example one franchisee gave was something like they have to stock this particularly printer for sale, costs $44 for them to buy, $49 to sell. Crappy margin, then the nearest non-franchise is selling them for $40. USB sticks twice the price of something from JB's? wtf?

Painted a picture of not-so good times for franchisees.

In regards to the future of AusPost? Who knows. Generally letters may be falling off the face of the earth, but sending packages is going to grow exponentially over the coming decades, thanks to buying online. If they can position themselves to be competitive in this market they will have a future.

yep, agree on the declinging number of letters being sent, however, im not sure if internet buying would compesnate for it,60c a letter vs $5 per package, im assuming that the profit margins are the same.
also, yeah, those printer deals for the franchisee sound really crappy.

although my aust post franchise owner contact did used to ask me where he could get cheap USB sticks for and ended up buying a few for resale (he may have been doing a dodgy, Im not sure)
 
Apparently the volume of internet ordered package deliveries are going through the roof and more than compensate for declining letter deliveries. They use contractors for package deliveries so its efficient and profitable.

Also, the sale of printers is a loss leader to buy the expensive ink cartridges. Its called the "razor blade" model of selling the handle cheaply and people will keep coming back for the expensive blades. Replace the handle for the printer and the blades for the cartridges. They almost give them away.
 
Problem is Evand, that printer loss leaders doesn't quite fit with the Aust. Post style, as who buys ink from there? Let alone printers! There are a plethora of stores which are opened longer, 7 days, cheaper and more known to stock ink cartridges than Australia Post.

Do they even stock cartridges? I don't remember them selling any.
 
The discussion was on a $5 margin on printers so i addressed that. Yes, they sell cartridges but its only one line of hundreds they sell. No biggie...

Problem is Evand, that printer loss leaders doesn't quite fit with the Aust. Post style, as who buys ink from there? Let alone printers! There are a plethora of stores which are opened longer, 7 days, cheaper and more known to stock ink cartridges than Australia Post.

Do they even stock cartridges? I don't remember them selling any.
 
Has anybody owned a Tatts business/franchise?

im starting to think that its almost identical to a aust post in terms of turnonver, price etc. and I feel that its far more recession proof or Aust Post proof.

a friend of mine looked at one a few years ago, but decided against it due to the fact that it wasnt really a cash business, well it might be but HINT HINT

Does anybody know what Multiple of earnings they go for?>
 
All I can comment on is that we have 3 post office subbranches in the area. Despite increasing suburb sizes they all refuse to expand the number of boxes available.
2 of them I have been too physically and space is not the issue. I have to assume its economically nonviable to add another 50-100 boxes even when they would be rented immediately.
 
I know a couple that own/operate a metro PO and they have been held up twice by the same bandit. It's left them a bit shaky. Maybe ask the police if there have been any call outs to that business or street, and factor in a security outlay.
 
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