Valpak has been a leader in the cooperative direct mail industry since 1968 when it was founded by Terry Loebel in Clearwater, Florida. Today, it boasts over 200 franchises across North America and remains the leader in direct marketing. Market reports show that U.S. direct mail spending is projected to grow 4.5% from 49.8 billion to 59.3 billion in 2009. (PROMO, 2006 Industry Trends Report) According to a new report, U.S. consumers are expected to increase their spending at online retail shops from $877 per consumer in 2005 to $1,212 per consumer by 2009 - an increase of more than 50% by 2009. (eMarketer) These statistics make Valpak an important contender for your franchise dollars.
Background and Benefits
Valpak Direct Marketing Systems, Inc. became part of Cox Target Media, Inc., a division of Cox Newspapers in 1991. Cox Newspapers division is one of the nation's leading media companies and ranks in the top 10 in every major category where it competes, based on revenues. In 2006, Valpak launched online coupons through Google Maps. Valpak is proud of its Signature Blue Envelope that is delivered to over 45 million homes each month in the United States and Canada. Each year, Valpak works with 65,000 local and national advertisers.How Much Does a Valpak Franchise Cost?
The franchise and training fee is $17,500 for dormant markets and $15,000 for existing markets. Existing "For Sale" franchises can be purchased from current franchisees. Valpak offers a one-week program that includes 30-35 hours of online courses and then one week at the corporate headquarters in Largo, FL. Valpak pays for airfare, hotel, and provides transportation. The liquidity requirement is a minimum of $75,000 with a net worth of $150,000. The territory fee is $5,000 for every 10,000 Prime Households in the U.S. and $4000 for every 10,000 Prime Households in Canada. Be mindful, it can take up to 8 weeks in the field before you sell your first mailing.
What We Like
Company statistics show that 90% of adults receiving Valpak are aware of it will open Valpak to look through the coupon offers. With “Solo Values” mail products, the advertiser can set their own deadlines and choose their own audience. The advertiser can also customize their mailing list to best reach their target audience. In 2007, nearly 260 million coupon offers were viewed on Valpak.com, with an average of 21.5 million each month. Plus, you can work from home.
Pros
- No Royalties - No monthly fees as a percentage of your gross sales, because Val Pak says when franchisees increase their mailings, Valpak's business also increases.
- Brand Awareness - Valpak is a product consumers know and use. Nearly 9 in 10 adults receiving Valpak open the distinctive blue envelop and look through the coupons
Cons
- Sales Experience Preferred - Valpak is an advertising and sales business. Franchisees and sales representatives must go out and call on businesses. Absentee ownership NOT allowed
ValPak Snapshot
Business Established: 1968Franchising Since: 1988
Start-up Cost: $15,000 to $17,500
Total Investment: $75,000 and up depending on territory
