Post Office
- Thread starter pete152
- Start date
The family of a friend owns a post office. My understanding is that the actual postal part (stamps, etc) is pretty low profit. It's the other items for sale (paper, cards, stationery, printer ink, etc) that're high margin. It's a bit like a newsagent: you have a core, low margin service everyone will use (stamps for the post office, and newspapers in the case of a newsagent) and when they're in your shop you sell them high margin stuff.
I guess you evaluate it like that. How many customers you will have, and what stuff will they want? You want stuff that your customers will see and think 'Hey, I need some of those!'
Alex
I guess you evaluate it like that. How many customers you will have, and what stuff will they want? You want stuff that your customers will see and think 'Hey, I need some of those!'
Alex
Hi pete 152
we looked at buying a post office 10 years ago.At that stage telephone banking and bill paying by phone/internet were just starting to move.All bills paid at the P/O ie water/power/ect would pay you between $1.50 to $3.00 commission. Checking over the figures the turnover had been in steady decline for a 5 year period.Just 2 weeks ago l looked into a P/O again purley for interest sake.
I think that now and 10 years ago you would be buying yourself a job with good hours.
Slowly but surely the services the P/O provide are being eroded with todays technology.There is also quite an active under the counter market for the 50c stamp.believe it or not business who are allowed to sell stamps bargain the buy price down at their purchase point
However saying that whenever l go into a P/O there is a line up.
I think if you look at the turnover, then your profit, you could do better else where.The focus on paper work and security are something to be seriously considered.
More and more newsagencies are able to take on services that once could only be found at a P/O. I also think woolies & coles are silently creeping into this market as well.
Appro 15 years ago Aus Post started seeling their P/O to their senior staff at very good prices.These guys have done well but now they are all hitting retirement so their will be a few on the market.It started about 5yrs ago.It will be hard to get the returns they have had as they enjoyed very low entry costs and often got the attached residence with it.
Anyway sum it all up to suit yourself.
cheers yadreamin
we looked at buying a post office 10 years ago.At that stage telephone banking and bill paying by phone/internet were just starting to move.All bills paid at the P/O ie water/power/ect would pay you between $1.50 to $3.00 commission. Checking over the figures the turnover had been in steady decline for a 5 year period.Just 2 weeks ago l looked into a P/O again purley for interest sake.
I think that now and 10 years ago you would be buying yourself a job with good hours.
Slowly but surely the services the P/O provide are being eroded with todays technology.There is also quite an active under the counter market for the 50c stamp.believe it or not business who are allowed to sell stamps bargain the buy price down at their purchase point
However saying that whenever l go into a P/O there is a line up.
I think if you look at the turnover, then your profit, you could do better else where.The focus on paper work and security are something to be seriously considered.
More and more newsagencies are able to take on services that once could only be found at a P/O. I also think woolies & coles are silently creeping into this market as well.
Appro 15 years ago Aus Post started seeling their P/O to their senior staff at very good prices.These guys have done well but now they are all hitting retirement so their will be a few on the market.It started about 5yrs ago.It will be hard to get the returns they have had as they enjoyed very low entry costs and often got the attached residence with it.
Anyway sum it all up to suit yourself.
cheers yadreamin
yadreamin said:
And don't overlook the effect when (beyond your control) companies like Optus start charging people who pay at post offices a 55 cent fee for the privilege. In case anyone is wondering, this came in recently, and customers were written to prior.
One possible opportunity is if you're in an area surrounded by regular (company-owned) POs that just open 9-5 and you made yours the only one in the district that opened earlier, closed later and did weekends. But then you're losing the 'good hours'.
True. This line is longer than for any retail establishment around here and is even longer than in the banks.
While POs are stocking stuff you'd see at two dollar stores!
Peter
Ok thanks for all the coments. I will do some more investigating.
And while we are on the subject, what about a Post Office in a small country town? Would they have the same problems as in larger Cities? Or would it be better as you would not have Coles or Woolies.
Also none or one bank, in town would that help?
Thanks any way for all the coments,
Peter
And while we are on the subject, what about a Post Office in a small country town? Would they have the same problems as in larger Cities? Or would it be better as you would not have Coles or Woolies.
Also none or one bank, in town would that help?
Thanks any way for all the coments,
Peter
I’d tend to look for a PO in an area that doesn’t have mail deliveries, they seem to derive a reasonable income this way.pete152 said:
We live in an outer suburban area that has never had mail deliveries and I constantly find it interesting to see the PO owners mounting campaigns to keep things as they are whenever Australia Post surveys us regarding deliveries. It would be great to know how much extra they get paid. I grumble about not having mail deliveries, but it does tend to bring people to town and keeps the other shops buzzing.
Ruby
PS…Just a note for Jamie, 50km from the CBD is not classed as rural.
People use the PO mainly for bill payment, banking, parcels and mailing.
A key to a successful PO business is in the location, where there is little competition from bigger businesses and plenty of technology late-takers (like the self-employed, pensioners or migrants).
Some areas with plenty of small businesses are ok as they can generate a lot of bulk mailing and parcels. Stay away from areas with Australia Post-owned shops.
The commission for each bill payment transaction is 80 cents, not $1.50 nor $3.00 as mentioned elsewhere in this thread.
PO can involve long hours if there are boxes. The operator needs to start early to pick up mail from the delivery centres, sorts mail and finishes by around 8:30 am.
Kenny
A key to a successful PO business is in the location, where there is little competition from bigger businesses and plenty of technology late-takers (like the self-employed, pensioners or migrants).
Some areas with plenty of small businesses are ok as they can generate a lot of bulk mailing and parcels. Stay away from areas with Australia Post-owned shops.
The commission for each bill payment transaction is 80 cents, not $1.50 nor $3.00 as mentioned elsewhere in this thread.
PO can involve long hours if there are boxes. The operator needs to start early to pick up mail from the delivery centres, sorts mail and finishes by around 8:30 am.
Kenny
There are a few for sale at the moment and we are in two minds as too whether they are a viable investment?
Peter,
just a simple question,will you run the P/O yourself?
a friend in Brisbane has a post office,newsagent
set up on the inner southside,from what i see
they have a very high cash flow,down sides
long hours,seven days a week,and everything
depends on the demographics and who will be
your customers.
good luck
willair..
Peter,
just a simple question,will you run the P/O yourself?
a friend in Brisbane has a post office,newsagent
set up on the inner southside,from what i see
they have a very high cash flow,down sides
long hours,seven days a week,and everything
depends on the demographics and who will be
your customers.
good luck
willair..
