Introduction

Since the liberalisation of the postal market began in 2002 our offering has rapidly expanded. These days we do much more than deliver mail. Our services cover everything from marketing through data services to warehousing, workflow management and yes, courier services too.

Royal Mail Courier Services has been growing rapidly over the past few years and we want to expand further, faster. Of course, we're developing our internal business but there is an opportunity for us to work with a limited number of existing courier companies and
for them to join Royal Mail Courier Services as part of a franchise operation.

Under the terms of the franchise we will manage the day to day operations using existing Royal Mail resources; things like the logistics, staffing, premises and those other details that get in the way of running a successful courier business will be looked after by us. We'll also look after the finances, paying you guaranteed commission based on your existing business.

We'll also work with you to develop a successful, long-term, Royal Mail business, with income opportunities to match.

We know this is a big decision that will only be right for some businesses. That's why we are very careful about who we're contacting about our plans. We're committed to providing you with all the information you need, in stages, when you need it, so that you have all the facts and are 100% comfortable joining our business.

But first of all; congratulations!

If you are reading this you're already successfully through the first couple of stages of the process and we believe there is an opportunity to work together. The rest of this brochure will give you some more information ahead of a first 'get to know you' meeting.

Read on to find out more about this unique, one-off, opportunity to be part of something special; the Royal Mail family.

Be part of something special


It's not every day that Royal Mail comes knocking on your door! This is a unique opportunity to be part of something special as Royal Mail expands its courier services across the UK.

Royal Mail can trace its roots back to 1516 when Henry VIII established a 'Master of the Posts'. Since then the organisation has had a long, illustrious and successful history.

With the deregulation of the postal market we were exposed to more competition, but also had the opportunity to explore new business streams and compete in more markets.

Royal Mail Courier Services is part of our Specialist Services Group, which works in nonregulated markets; those markets where we are free to develop new business.

We believe the courier market is an exciting place to be. Royal Mail Courier Services has doubled in size in the last 2 years alone and we're now ready to accelerate that growth into a market that's valued conservatively at £1.2 billion. We estimate there are 14,000 courier companies in the market ranging from the very small, one person operation, to the larger business.

Even though the market is huge, there is no dominant force and we intend to fill that space.

Using our massive experience, existing infrastructure and the trusted Royal Mail brand we have very exciting plans to grow our business over the next 5 years.

We have 2 strategies for achieving our aims:

  • To grow our existing business, leveraging existing Royal Mail contacts with major corporate clients and building on our significant successes to date
  • To work with a select number of successful courier businesses, taking over the logistics and rebranding their offering to bring it under the Royal Mail banner

That's where you come in.

We know the hard work and dedication it takes to build a successful courier business and we want to help you continue that tradition.

By working together we can take the very best of what you do, building local contacts and business, with what we do best, logistics, operations and the infrastructure.

Combined, we can build something special.

Working together


So, how will it work?

Believe us when we say we know how hard it is to run a courier business and we do understand the sacrifices you have to make personally as your business grows; things like drivers calling in sick and having to do the night run, staff being paid first and you getting your wages if there's enough left over, being all things to all people; from chief cook and bottle washer to Finance Director…

We also know about the sheer force of will it takes to build a business; your skill as a networker, negotiator and deal closer.

Why not keep the best of what you do and combine it with the best of what we do?

On successful completion of the franchise agreement Royal Mail Courier Services will:

  • Pay you guaranteed commission based on business generated from your existing customer base
  • Take bookings from customers
  • Confirm jobs with drivers and arrange pick up, storage and delivery
  • Handle all the finances, from dealing with card transactions to making commission payments to you and paying drivers (early, if necessary)
  • Chase for payment as and when it's needed

In short, we will look after all the back-end, logistics and financial arrangements of the business.

In addition to this, we will:

  • Provide you with Royal Mail branded marketing material so you can develop business in your locality
  • Give you access to our Direct Sales Force and Customer Contact Centres to help you build local business development campaigns
  • Free up your time so you can concentrate on looking after your customers and winning new business.

It's not all a one way street and you will have to keep your end of the bargain

We will ask you to:

  • Enter into a franchise agreement, under which you will maintain and grow a customer base using Royal Mail Courier Services and the Royal Mail brand.

It's been mentioned before and we make no apologies for mentioning it again; this opportunity will not be right for every business. Just as you will be very careful before entering into any agreement with us, the reverse is also true: we're looking at you and your business, too.

We have a very clear idea of the type of person we want to work with as we grow this business.

Ideally, you will have grown your business to a turnover of somewhere between £1 million and £5 million. You need to be in it for the long-term; we will ask you to enter a five year franchise agreement as a commitment.

You need to have good financial records because we'll need to do an analysis of your business and you need to be a good communicator, willing to embrace the Royal Mail brand.

Having said that, for us at Royal Mail there are 2 very important qualities all of our franchisees must possess. We're looking for franchise partners with the drive and passion to maintain and grow a special business as part of the Royal Mail Courier Services network.

We know it's a big decision to change the way you work and, potentially, give up the organisation you've built over the past few years. However, we know there are some very real benefits to joining the Royal Mail network.

What's in it for me?


Royal Mail has very big plans for its Courier Services arm and there are some very obvious benefits to being part of that growth. But, just in case they aren't obvious, we thought, we'd spell them out for you.

The benefits of joining our network fall under 3 headings:

  • Financial
  • Business development
  • Lifestyle

Let's work through each of these in turn:

Financial

There are 3 distinct financial benefits to joining the Royal Mail Courier Services network:

1. Guaranteed commission

Before entering into any agreement we will complete an analysis of your income received from the courier services you provide. As long as your income hits certain parameters (which we'll talk about when we meet) we will pay you guaranteed commission based on turnover.

There is an added benefit in that Royal Mail is a Government company and, by law, we have to make payments in 30 days… and those payments are also guaranteed by government bond.

2. New business rewards

We will pay commission on every new piece of business you bring on board, whether from your existing customers or from new relationships.

So, if you're out there networking and growing your business, you will be rewarded for all your efforts. What's more, you can offer other Royal Mail Group services, for which you will also receive commission.

3. An asset for the future

Although you will be working under the Royal Mail brand, you will be a franchisee of Royal Mail Courier Services. This means you will still be running your own business. Because there is a level of certainty to that business it becomes an asset you can sell in the future.

When the time comes you will be able to find someone, subject to our approval, to buy the business from you. We can't say how much the business will be worth (that depends on a variety of factors) but usually the value of a business is calculated based on the turnover or profit it makes.

You could receive guaranteed commission payments right now and a capital payment in the future when you come to sell your business, in effect being paid twice for your business.

Business Development

Because we will manage and run all back office functions, from order taking to arranging drivers to the financials of the business you are left to do what you do best: work with customers.

You will know your current customer base better than anyone and it will be up to you to make sure they stay with us and even increase their spend.

But you will also know your local territory, too. Although there will be no pressure to grow your business from us, we think becoming a part of our network offers a unique opportunity for business development, for which you will be directly rewarded.

To help you develop local business we will work with you to create a Development Plan and Contact Strategy to get you in front of key decision makers where you are based. As part of Royal Mail Group, you will have access to our Direct Sales Force and Customer Contact
Centres, free of charge.

You will be able to develop a targeted campaign to help you achieve your own financial goals and we'll support you every step of the way.

And because we have taken over the day to day hassles of running the business you will have time to concentrate on growing the customer base and your income. Business Development will become your core role rather than something you do when you get a spare minute in your busy day

Lifestyle

Running a courier business is incredibly complex, especially when you are the boss. Everything, but everything seems to fall into your lap; whether it's putting together a proposal worth many thousands of pounds or going to the corner shop to buy the milk.

To be honest, it's probably not the bigger issues that cause the headaches… it's the detail you have to deal with. Things like completing the latest VAT return, chasing the guy down the road for his £100 bill, the weekly bookkeeping, etc., etc.

Whereas everyone else goes home at 5.00pm on the dot, you are the one left in the office until much later, making sure everything has been done and your customers are happy.

When you join the Royal Mail network you will no longer need the infrastructure… if you want to you can go back to working from home (or from a small office you rent) with just your lap top and your phone.

That means you are freed from the day-to-day hassles of running the business; you can have your life back and choose what to do with the time you have available. You can use it to spend with the family, follow the past-times you love or even concentrate on adding more business.

It will be up to you.

In summary, then, there are 10 very good reasons to join the Royal Mail Courier Services network.

These are:

1 Royal Mail is one of Britain's oldest, most respected and secure businesses

2 Commission payments are guaranteed, paid within 30 days and backed by the government

3 There are no more bad debt worries; we'll look after cash flow and chase poor payers

4 You will become part of the Royal Mail brand – and that opens doors when it comes to business development

5 Access to the Royal Mail Direct Sales Force is free of charge and will help you grow your business

6 Royal Mail Customer Contact Centres will work on your behalf to open doors to local businesses; and it won't cost you a penny

7 Offering other Royal Mail Group services will earn you commission

8 You will benefit from group purchasing arrangements – Royal Mail has real clout!

9 The business is scalable – you know that, no matter how much business you put on, demand can be serviced… we'll make sure it is

10 The business is saleable. You are building an asset for your future

We know what you're thinking


This is the last time we'll say it – in this brochure, at least – we know this is a big decision and right now you are probably thinking it sounds like a great opportunity, but you have some concerns.

This is natural and we'll answer all your questions when we meet and probably some you didn't know you wanted to ask. In the meantime, though, we've tried to anticipate some of your thoughts and set your mind at rest. Remember, though, you will be getting all the information you need as we run through the process together.

Scenario 1:

We fully understand and recognise the effort it takes to build a business and the emotional attachment you have to it. On the other hand, becoming a Royal Mail Courier Services franchisee actually means you are still in business for yourself… it's just that you are concentrating on certain aspects of the business whilst we look after the back-end processes.

There's no doubt, the emphasis of your day to day role will change, but you will still be working with your existing customer base, whilst developing new income streams.

Your customers will have bought services because of you. That's why our entire strategy is built on retaining you in the business as franchisee. The real business opportunity comes from combining the very best of what we do. Remember, once we have analysed your income we will mutually agree a level of business and guaranteed commission for the first year will be based on this figure, subject to a couple of conditions.

Scenario 2:

Of course, we understand that.

We will do all we can to retain self-employed drivers, especially where we believe demand will mean there will be business for them. Although there can be no promises as everything we do has to have a commercial basis.

In terms of other staff, once again, we can make no promises but we will help you help them wherever we can. For example, by helping them put together job applications, update CVs and making suggestions for job hunting.

Scenario 3:

Yes. You will be reliant on service delivered by Royal Mail… but that's what we do.

We have many, many years experience in this field and have developed both the infrastructure and the systems to support large volumes of business.

Finally, a local presence (i.e. you) is very important. Although your customers will be working with Royal Mail, you will still be their local contact for new business and, customers being customers, no doubt they will keep you informed of service levels, too!

Scenario 4:

In essence you will be earning approximately the same* as you are right now, but with much less day to day admin: we will be booking jobs, organising drivers, chasing for payment and the hundreds of other details that have to be attended to when you are running a courier business.

* Of course, you might be earning much more than now; the rewards you receive as part of Royal Mail Courier Services could well be in excess of your current earning.

Scenario 5:

Once again, you are right. Royal Mail employs something like 176,000! However, you will actually be a franchisee of Royal Mail Courier Services, just one part of the Royal Mail family… and you will be in at the very start. All our franchisees are very important to us and, actually, there won't be that many of you, even when we have completed our network.

And, as a franchisee of Royal Mail Courier Services, you will still be running your own business. You will manage your own time and we will not be micro managing in any way. In fact, the main differences will be that you have more choice with what you do, day by day and that your income will be guaranteed.

Every business is different so we can't anticipate the level of commission you will be getting as a Royal Mail Courier Services franchisee. However, you will be earning guaranteed commission for all the hard work you've already done based on the turnover you've already achieved… and this is without the day to day hassles of managing the business.

 

 

Get involved


There's lots to take in and we still have much to tell you – in the same way as you still have many questions to be answered.

It's just impossible to give you all the information in one go. And so the next stage is to meet up – we'll both have a much clearer idea of whether the opportunity is right for both of us when we've had time together.