The demand for mailbox stores is growing across America. Companies are taking advantage of this industry and popping up in locations across multiple states. The idea is that users can have their business mail, or any other sensitive items, sent here rather than their home address. Then, they just have to pick it up at their convenience or have the items forwarded. These businesses are convenient and incredibly helpful for anyone dealing with at-home businesses and side hustles. The idea of opening one of these stores sounds great for those looking to cash in. On paper, the idea is pretty simple, without too much equipment or training needed to handle operations. Still, you have to consider this venture wisely. Keep the following in mind.
Important Considerations When Setting Up A Mailbox Store
1. Location
The location of the store has to be the most important factor to start with. The right location could make you profitable in a short space of time, while a bad location could be a disaster. Two factors determine a good or bad location. First, you have to research the other providers in your area. If there’s a successful virtual postbox site on your block already, you’d have to work extra hard to steal clients away from them. You need an area that no one’s tapped into yet. Second, that untapped area has to have enough potential. Can you set yourself up in a unit near other well-used businesses, such as banks and grocery stores? This would be great for those collecting mail while running errands. You can also look at the demographics of the area and if there are plenty of students. This leads to the next point.
2. The target clientele
Ideally, you want to encourage as many different users as possible to your store to make it as popular and profitable as possible. A lot of mailbox store users are those running small businesses from home. This is why it can help to set yourself up in a quieter suburb that’s both residential and commercial. They are also popular with students who don’t want important mail or packages getting lost or stolen at their dorm. So, maybe it would be better to set yourself up closer to a university campus or student dorms?
3. The services provided
Once you have the right location in a place with potential clients, you need the services to bring them through the door. Offering a secure mailbox is just the start. This is the bare minimum that people expect, and they can get a secure location like this from many different providers. What can you offer to make you better than a USPS PO Box service or an Amazon locker? Well, the first step is to offer a relocation service so that mail gets delivered to their home rather than them having to come and collect it all the time. You can also look into providing shredding and scanning as part of a more comprehensive mail management solution.
4. How much to charge
This is where you need to carefully balance your income and expenditure to remain profitable. There will be some significant expenses to consider when dealing with mailbox services. Naturally, the rent and running costs are some of the highest, and there’s the wages of all the staff. Additional services like printing and scanning will also prove costly in the long term. So, you have to think about how the rental costs and fees will cover this. How much should you charge for each aspect to stay appealing and competitive?
5. Scaleability
This idea of different fees and costs brings us to the factor of scalability. How much potential is there for your business to grow and for you to build stronger relationships with your clientele? Scalability works in two ways. First, there’s the chance for your business to develop in the future with more services. Perhaps you have a dream of venturing into packaging and shipping with the right support behind you. Then there’s the scalability for the customer. Tiered pricing options and plans help clients gain more through improved storage, better allowances for services per month, and perks that others don’t get. It’s something you can work towards as the business grows.
6. Branding and marketing
Next, once you have the service plans, costs, and target market ready, you can think about marketing your store. Physical marketing in the local community will go a long way. Flyering campaigns that highlight the pain point of dealing with business mail will attract people looking for a solution in their area. Online marketing, with the right branding and content, can help you find people on social media or through Google searches. Get the location listed on a Google Business Profile so it immediately stands out to those searching a map of the area.
7. Becoming a franchise
This final consideration is crucial when opening a mailbox store from scratch. If you have a strong business plan and an available unit, you might be able to go it alone and set up as an independent store. However, it takes a lot of extra work with the set-up and marketing when you start with nothing. You’ll be the one responsible for all the equipment, the branding, and the training. You’ll have to figure out all the services, create relationships with couriers, and finance everything upfront. The alternative is to create a store in a turnkey franchise solution. You’d be an independent business owner but also part of a growing family. This would give your exciting new mailbox business the branding, tools, and support to get off the ground and win over new clients.
Mailbox Stores Are Profitable After A Lot Of Hard Work
What you need to remember here is that these mailbox businesses aren’t as simple as they appear. You need to carry out a lot of research and planning to set one up in the right place. You also need to attract the right people with a great range of services. Setting yourself up as a franchise will make this all a lot easier, but you still need a lot of dedication and skill to pull this off.
