licence set-up costs
make an investment in your own future
The initial fee of £14,850 +VAT gives you exclusive rights to operate the expost Mail Centre in the South of England for a term of five years, with a protected territory encompassing all of Hampshire, Surrey, Sussex and Kent. This one-off set-up charge covers the cost of training, IT hardware, specialist equipment, sales & marketing, all consumables for the first 12 months, access to our bespoke software, ongoing support and system development.
on-going & sales related costs
Our income is limited to the Royalties on account sales and mail handling, we only profit from your financial success!
Even though all sales, marketing, advertising, customer support and administration is handled exclusively by our team at Philbeach on your behalf, we only retain 40% of gross revenues as a Royalty, with the balance credited to your bank account at the end of each month.
If you intend to operate the South of England Mail Centre as it is intended, from home, then you should have no additional workspace or staff related outgoings whatsoever. The business is effectively overhead free, aside from broadband internet and some form of commercial insurance ( this may be required by law if you are trading as a Limited Company ). For your guidance, a minimum of £10,000 all risks cover is suggested for computer hardware, mailsort furniture and consumables held in stock.
Mail held at your Centre is only insured at the rate of £1 per letter, £2 per large letter and £10 a parcel, with the limit on any single claim of £50 in aggregate, and so we have found that the most cost effective option was to self-insure mail-in-hand. Your Mail Centre management reports include a real-time update on the current insurance exposure.
annual licence fees
There are none! All you will need to pay for a further five year term is a £2,000 + VAT contribution toward the legal costs involved in drawing up your new contract. Renewal of the Licence will also renew your geographical exclusivity for the same period.
The largest operational cost is, by far, the cumulative postage and courier charges incurred when forwarding your customers' mail. But you don't pay them! Whether you are forwarding a single letter to Swindon via the Royal Mail, or despatching two 20Kg parcels to South Africa by DHL or UPS, all of the postal and shipping costs are covered by our national credit accounts!
( call our development team for more information on 0333 789 0011 )
earnings & income
sales, renewals, handling & scanning
Please note that the sales figures used in the following projections are drawn from the performance of our Cambridgeshire Mail Centre, which enjoys the closest market demographic and territory size. . . and we confidently expect the South of England Mail Centre to match or even exceed this performance.
The income from the sale of new accounts, and their subsequent renewals, constitutes your primary revenue stream. To help put these projections into perspective; even in year three, they still represent less than one account sale per day.
3 month account: £100
6 month account: £180
12 month account: £240
Average sales value: £216
Net of Royalties: £112
New account sales are augmented by renewals in subsequent years. The current retention rate for accounts across our UK network of Mail Centres is almost 80% and there is no evidence to suggest that this figure would be any lower in this affluent region.
As your Mail Centre accumulates customer accounts, the income arising from mail handling fees, scanning and surcharges ( 'Operational Revenues' ) grows proportionately, because the longer a customer holds an account with you, the more mail they will process through the Centre each month. Handling charges are identical in each Mail Centre and are not subject to South of England weighting.
Letter handling: £0.60
Large Letter handling: £1.00
Parcel handling: £3.00
Although the Operational Revenue in our Head Office Mail Centre now exceeds that generated by Account Sales, for the purposes of the projections it has been assumed that the mean Operational Revenue per active Account will equate to just 45% of the Sales value in year one, rising to 85% in subsequent years, as your customers' account usage matures.
36 month projections - expost south
Year 1 total account sales: 110
Year 2 total account sales: 160
Year 3 total account sales: 190
Active accounts, year 3: 388
TOTAL SET-UP COST: £14,850 (+ VAT)
Year 1 Projected revenue: £18,000 ( net of Royalties & VAT )
Year 2 Projected revenue: £41,000 ( net of Royalties & VAT )
Year 3 Projected revenue: £72,200 ( net of Royalties & VAT )
billing & reconciliation
ProPost incorporates a comprehensive accounting module that keeps track of every letter and parcel you handle, every scan, customer credit, royalty payment, transaction fee, surcharge and VAT; then uses this data to present you with a real-time, fully reconciled, statement of account. At the end of each calendar month, the net revenue due is transferred from expost's client account, directly into your real-world bank.