It’s important to consider all your options before you sell your HND business.
Can you afford for your business to lose £2,500 off your bottom line for every 30 customers you are no longer delivering to?
Some Store2Door deliverers who had historically good trade through their retail outlets may be finding that the closure of nearby factories or the opening of new supermarkets have decimated their shop trade and it is only the fact they offer a Store2Door service that is carrying them through the current difficult trading conditions.
Store2Door is in many areas a unique selling point (USP) and brings with it, guaranteed sales and customer loyalty. Astute Store2Door deliverers claim they have been serving three generations of the same family through the years and that this alone provides the tag of excellent service, something many companies would bite your hand off to gain.
It is important to understand why you are considering selling this profitable business and is therefore worthwhile to take time away from your business and consider the following:
Do you need to increase your delivery charge?: You may need to increase your delivery charge to enable you to do this but remember more customers leave through poor service than price! You deliver come rain or shine and offer a first rate service and should be recompensed for this. Don’t forget it costs 64p to post a letter and more these days! In some areas it is either difficult to attract schoolchildren deliverers or the areas covered are simply too big for a bike delivery and adults are required, and with record unemployment, many want to join you and welcome a few hours work each day.
If you feel you have no option but to increase your delivery charge then this delivery charge letter template will help.
Are you fed up with consistently late deliveries?: Yes, it may be difficult at the moment with both Wholesaler and Publishers rationalising their distribution centres/networks however don’t simply give up. Contact your wholesaler and ask for an early delivery time. Use the request for change in delivery time letter if applicable. If you are still experiencing difficulties contact NFRN Connect on 0800 121 6376. Ensure you are always claiming compensation for late deliveries if you are entitled. The same issue occurring 3 times in 2 weeks or 1 seriously late delivery that occurs as a result of wholesalers actions or 3 late deliveries into wholesale of any National Publisher (except Express) entitles you to claim compensation for both lost profit and re-running of your HND rounds. Your wholesaler should help you with this, however if you have difficulty then contact NFRN Connect who will be happy to help.
Having difficulty recruiting?: Use the Store2Door Recruitment Posters. Are you paying the going rate in your area? Ask around and see what other HND operators pay.
Can’t make your delivery rounds pay?:
- Canvass your area to increase the number of customers delivered to
- Ask National/Regional Publishers for support
- Re-map your delivery areas to ensure there is no overlap
- Look to deliver other products
- Ask the Store2Door team for advice (via NFRN Connect on 0800 121 6376)
Too much bad debt: Click here to find out how to claim monies owed through the small claims court. Ensure all future customers are aware of the repayment procedure and timings.
Late paying customers: Don’t be afraid to stop delivery to a customer who hasn’t paid within the agreed timeframe, however ensure they are written to beforehand to remind them to pay and the likely consequences of not doing so.
How to value your Store2Door business
If after you have considered all of the above and you still wish to sell your Store2Door business, STOP AGAIN and don’t show your hand. You need to consider how much you should ask for it as this alone will determine how much you might get.
The actual value for the goodwill of a delivery round depends entirely on what a potential purchaser is prepared to pay for it. Put yourself in the place of the buyer………. YES, they only want to pay you the minimum amount.
To establish your annual net profitability of your Store2Door business, use the following formula:
- 48 week profit value (to allow for holiday stops) x (sales @ margin minus delivery wages minus 2% administration costs and + delivery charges).
It is however worthwhile talking into consideration the current economic climate as any prospective purchaser will take this into account. Ultimately it is advisable to negotiate the best price whilst maintaining the interest of the prospective purchaser. If you are totally unprepared to move on your position they may lose interest altogether and they may ultimately wait until you have stopped delivery and canvass the area at no goodwill cost to them whatsoever.
Still want to sell?
Register your details and let other NFRN members contact you about buying your Store2Door business. Potential buyers will contact you directly via the phone number or email address you provide.