Value of a Leafleting Franchise?

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I've seen franchises for a leafleting company for sale at 8 thousand pounds. I'm wondering how much you feel such a company (ie the franchise) should be worth? The biggest expense is printing the leaflets I assume. I'll give you the name if I can find it.
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  • phill99
    phill99 Posts: 9,093 Forumite
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    Its worth zero.


    You aren't being offered a business with a unique skill set and there are no barriers to entry. Anyone can push leaflets through letter boxes. Why would you spend £8000 on the ability to do this?


    And in terms of customer (ie businesses using the service) its a rapidly declining market. How many leaflets do you get and how many do you look at? Probably zero. So its a marketing medium with a very low response rate. Other platforms are far more cost effective and cost much less.


    Don't do it.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
  • fewgroats
    fewgroats Posts: 774 Forumite
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    I assume there must be some printing involved. Note that it is leafleting business, not just a leafleter, but I agree it seems overvalued.
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  • Pennywise
    Pennywise Posts: 13,468 Forumite
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    edited 28 April 2017 at 8:11AM
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    Cheap franchises like that are usually worth nothing. You just pay for what you could buy yourself separately for a lot less money and end up with a chain around your neck in terms of ongoing restrictions/obligations.

    Look at exactly what they give you for that money and then do some proper research as to how you could do the same yourself if it's a trade you're particularly interested in. Franchises are only worth it where you have restrictions or barriers to entry that give you an advantage in that market over the competition without the franchise. You really don't want to pay to buy into a market that is a free for all that anyone can cheaply/easily enter.

    Most "brand" names are worthless (except those with huge marketing budgets such as TV advertising). Most "training courses" are some amateur giving a bit of poor quality training that will barely get you started.

    From working with businesses for 35 years, having seen loads of start up with and without franchises, the only franchises worth having are the ones a lot more expensive where you get a truly valuable brand name that people will actively seek out - I'm thinking more about McDonalds, Mailbox Inc, etc rather than "Leaflets R Us".

    Although there is one looking interesting at the moment which is n't too far more than your budget, so I'd usually discount it, but whilst it's not a household name nor is there any national advertising/marketing, you do get exclusive access to sell a patented product in a specific geographical area, so basically, no one else can sell the same thing as simply no-one could buy it, as there is an exclusively UK supplier who (as per terms of the franchise) can only sell it to franchise holders. Nothing to do with leafletting, but just as an example to how, sometimes, you really can find a relatively cheap franchise that gives you something unique.
  • Lafuma
    Lafuma Posts: 23 Forumite
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    fewgroats wrote: »
    I've seen franchises for a leafleting company for sale at 8 thousand pounds. I'm wondering how much you feel such a company (ie the franchise) should be worth? The biggest expense is printing the leaflets I assume. I'll give you the name if I can find it.

    Depends...

    Has anyone bought such a franchise yet from this company?
    If so, do you know what they paid?
    What exactly do you get as a franchisee???
    What do you know about the company itself?
    Any figures?
  • fewgroats
    fewgroats Posts: 774 Forumite
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    edited 28 April 2017 at 11:41AM
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    I wonder if there is a way to make it this price? If the business had the right contacts?


    But phil99 makes a good point that leafleting is no longer popular, advertisers are less likely to pay for it.
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  • Lafuma
    Lafuma Posts: 23 Forumite
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    If phil99 is correct, then the suppliers around here haven't got that message yet.

    It's only 11:00am, and we've had 3 seperate leaflet droppers plus the postman all dropping leaflets through our door so far today.

    I expect quite a few this afternoon too, being a Friday - usually get the take-away leaflets being dropped for the weekend trade, especially as it's a long weeked too for most people.

    Most leafleters, including the postman, usually drop more than 1 leaflet too.
  • phill99
    phill99 Posts: 9,093 Forumite
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    Lafuma wrote: »
    If phil99 is correct, then the suppliers around here haven't got that message yet.

    It's only 11:00am, and we've had 3 seperate leaflet droppers plus the postman all dropping leaflets through our door so far today.

    I expect quite a few this afternoon too, being a Friday - usually get the take-away leaflets being dropped for the weekend trade, especially as it's a long weeked too for most people.

    Most leafleters, including the postman, usually drop more than 1 leaflet too.

    And have you ever bought a good or service as a result of a leaflet dropping through your door?
    Eat vegetables and fear no creditors, rather than eat duck and hide.
  • lincroft1710
    lincroft1710 Posts: 17,681 Forumite
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    Leafleting is a good idea, it keeps printers, paper merchants and recycling companies in business.
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  • Kayalana99
    Kayalana99 Posts: 3,626 Forumite
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    phill99 wrote: »
    And have you ever bought a good or service as a result of a leaflet dropping through your door?

    Actually yes, I have.

    The only reason leafleting is a dying trade is because Royal mail deliver them now for (what I hear) quite an in-expensive cost.

    There are however, still little local businesses that want this service.

    £8,000 is too high IMO. I guess you are paying for there name, their website set up and perhaps enquires to your area.

    In honestly, I looked into delivering leaflets recently and found a lot of the bigger named brands don't have a good review base anyway, so better to start a smaller local business if this is something that interests you and keep control a bit more rather then being tarnished if one franchise doesn't deliver theres etc.
    People don't know what they want until you show them.
  • FatVonD
    FatVonD Posts: 5,315 Forumite
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    Who would do the actual leafleting? If it is yourself don't underestimate how time consuming it is. Go out with 500 sheets of blank paper and put them through letterboxes and time how long it took you. It is a dull, tiring job.
    Make £25 a day in April £0/£750 (March £584, February £602, January £883.66)

    December £361.54, November £322.28, October £288.52, September £374.30, August £223.95, July £71.45, June £251.22, May£119.33, April £236.24, March £106.74, Feb £40.99, Jan £98.54) Total for 2017 - £2,495.10
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