UK Wide Door Drop Distribution Network For Sale

Business description

THE MARKET

According to the DMA, the direct marketing industry annually:

• Generates £125 billion worth of sales
• Contributes £43 billion to the UK economy
• Accounts for 3% of total UK employment


DMA research shows the true size and value of the direct marketing industry and its significant contribution to the UK economy. The direct marketing industry is healthy. Confirming its significance to the industry, direct mail accounts for the largest proportion of all expenditure, with internet advertising and email marketing combined following closely behind. 80% of top advertisers in the UK use door drops.

Specifically DMA Research shows Doordrops make people do things: 96% of respondents were aware of receiving leaflets, free samples, circulars and free publications through their letterboxes. On average, 72% of respondents had taken some action as a result of receiving unaddressed door drop items through their letterbox. Of the respondents that have taken action following the receipt of door drops, the majority had done so several times. 84% of respondents and their families have taken action on receipt of a 'money off' coupon. Free samples & supermarket offers had prompted some form of action by more than 80% of the sample base. Nearly 80% of respondents had reacted as a result of receiving either a National or Local Government leaflet. Door drop recipients were 10% more likely to take some form of action, when compared to recipients of direct mail. So if you want to trigger people into action and increase footfall, phone response or website hits - doordrops will do it.

THE DOR-2-DOR MASTER FRANCHISE

The business is made up of two parts;

Firstly offering quality door drop marketing services within its own operational zones. This activity will utilise the DOR-2-DOR proven system of managed, adult local Post People to carry out the distributions.

Secondly a franchise network operating in adjacent areas to its own location these franchisees being set up and properly trained to use the DOR-2-DOR proven system in their own local areas to provide an effective door to door postal system for (mainly) local businesses.

The operational area covered by the Master franchisee will be approximately 1.25 million homes. The area will be defined by postcode district.


THE DEVELOPMENT OF DOR-2-DOR

Established in 1987, this company has been involved in direct distribution of promotional materials including leaflets, coupons, and brochures etc to residential consumer households and business addresses. A highly robust system has been developed. The system is used to reliably promote the services of local businesses to (mainly) residential households through the medium of the letterbox. DOR-2-DOR provides reliable door drop leaflet distribution to a very wide range of local businesses but the main categories are as follows:

• National Multiple Retailers
• Banks/Building Societies
• Leisure Parks
• Dry Cleaners
• Driving Schools
• Fast Food Outlets
• Restaurants
• Home Improvement companies
• Estate Agents
• Garden Centres & Maintenance
• Health/Fitness/Slimming Clubs/Beauty
• Local government

The company employs distributors who are called Post People who are mainly mature adults working mainly on a part time basis. The individual distributors are supervised by franchisees with extensive knowledge of the areas to be targeted and the expertise to get the job done on time. A highly robust (developed over 21 years) monitoring system is in place to verify the proper distribution of client's material, with all individuals taking pride in their work, this is reflected in the high level of repeat business the company and its franchisees retain.

DOR-2-DOR has developed a network of 20 franchisees mainly located in the south of the UK. It is a very well established business providing high customer service levels and a high level of self-sufficiency giving fair pricing and fast turnaround. From the franchisees perspective the business is operated with low overheads and a minimal number of office staff. High technical skill is not a requirement in order to attract and recruit the delivery force (Post People) and the system takes care of that. It is possible to incorporate the DOR-2-DOR businesses into another business or will very effectively work alongside.

THE DOR-2-DOR FRANCHISE MODEL.

The DOR-2-DOR franchise model offers excellent operating margins, whilst maintaining high quality service and achieving excellent results for its customers and clients. DOR-2-DOR is very selective of the individuals it recruits to operate a local franchise. Typically an area franchise will be between 50,000 and 100,000 households or delivery addresses. Individuals are recruited on the basis of their sales, communication and organisational skills. We have both male and female franchisees. From the perspective of the franchisee the service is not a hard sell and is mainly about the regular communication of the service to the local business community. We use the internet and email to get our message across but mainly we find clients by utilising our own system of channel letterbox to get our message across, we know that decision makers live in houses somewhere and we use the DOR-2-DOR system to create awareness of what we do. We have of course developed sophisticated techniques to achieve this but mainly the franchise model is based on success breeds success. With quality of service is at the top of the list of the DOR-2-DOR franchise model the company is fully compliant certificated the Direct Marketing Association (DMA).

THE PILOT MASTER FRANCHISE OPERATION

Property information

Location:

The company operates from an established business centre suite. Parking is available. The business uses self-contained storage directly adjacent to the main office. Located in an area close to all local amenities, the town centre is approximately a quarter of a mile away and there is easy access to the national motorway and rail and air networks.

Other information

Expansion potential:

The current market for this distribution business is buoyant and is forecast in the near and longer term for significant growth. The system that has been developed by the Master Franchisor is unique and self perpetuating from the sales perspective. There is vast scope to expand sales using the DOR-2-DOR Intelligent Emailer system. The Master franchisor is also developing a centralised Postmailer system where centrally stored letter templates can be accessed and utilised by the whole franchise network. The Master franchisor currently has no directly employed sales or telesales personnel, but a system is available to develop such a resource. The business is well positioned To take maximum advantage of this growth as it occurs.

Competition / Market:

Yellow pages, local press, trade awareness and the finest form of marketing, word of mouth recommendation are used to advertise and market this business. The Company generates sales from direct marketing and recommendations. Significant revenue is also generated through its network of franchisees. Consistent growth will be achieved by building on this success. The business for sale benefits from strong, successful Internet marketing.The pilot master franchise utilises Yellow Pages, local press, trade awareness, door to door and the finest form of marketing, word of mouth recommendation to advertise and market this business. The Company generates sales from direct marketing and recommendations. Significant revenue is also generated through its network of franchisees. These franchisees act as a conduit for enquires which are obtained by the franchisees directly. These enquires are normally passed back to the master franchisor who then re-allocates specific work back to other franchisees in the network. Consistent growth will be achieved by building on this success. The Master Licence also benefits from strong, effective internet marketing such as Google Adwords and other methods

Support & training:

The Master Licensor will give full training back up and support to the successful applicant Master Licensee. Based on the existing Master Licensors business each new master licensee will develop over a 3-year period. In this time scale each master licensee will grow their business to a sales turnover of £500,000 and a net operating profit of £100,000. This will be achieved through a network of 25 franchisees and the business operated through the individual master licensees own operational area. Each franchisee of the master licensee will have a territory of on average 75,000 households. For the use of the DOR-2-DOR system and the ongoing support and back up the master licensee will pay 10% of its gross income to the Master Licensor.