1800 TV MAGICWHY mOBILE sERVICE bASED BUSINESSESS ARE 5 X MORE PROFITABLE THAN RETAIL
Have you ever wondered why you pay $15 for a T-Shirt @ target but $150 for a T-Shirt in a specialty store?
Do you really think that the $150 T-shirt cost 10x as much to manufacture? For sure, it's probably going to be better than the Target T-Shirt!
You get what you pay for, right?
But ten times better?
What many consumers may be forgetting is the ENOURMOUS RENTAL / LEASE fees they have to pay to keep their store open.
In Australia, (or America) it is not unreasonable to expect to pay $150-$250 for a tradesperson to arrive to your door. Whilst Mobile Service Based businesses have SIGNIFICANTLY LOWER expenses; they still have them!
But when compared to retail - it's no wonder that MOBILE SERVICES are BOOMING in AMERICA (And Australia) at the moment. TRADES and SERVICES are creating MORE MILLIONAIRES than any other industry in America at present!
What are the advantages of a mobile services business?
Why are mobile services dominating and are the most lucrative businesses in australia and america?
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To state the obvious - the overheads of a mobile services-based business are so much lower
- In retail you are often relying on foot-traffic. Your business may also have limited by parking, restrictions on how much signage space you are allowed to utilise and many other factors. The enormous rental / lease fees you pay are going towards the space / land you operate your business on. The real estate that owns that land / space are also trying to maximise profit. It is not uncommon for a restaurant or clothing store to only break even on day 25 of the month (and therefore they are only profiting 5 days of the month of their sales).
- With "Man in a Van" type businesses/ franchises your only start up costs are a vehicle (usually $50k-$100k)- vs. fitting out a store (usually in the hundreds of thousands $). The ongoing costs of your store can be $2000- $20,000 per week where as the ongoing costs of a vehicle will be only petrol, registration, insurance and maintenance (or car payments - if you don't own it outright). The cost of your business vehicle will be $50-$250 per week in comparison to $2000- $20,000 per week if you have a restaurant or retail type business.
- Next - Retail / restaurants usually have Staff! - The cost of staff and employees.
- In your mobile services business - (even if you grow) - you may have a maximum of 1-5 staff - compared to 5- 50 staff for a restaurant / retail business model
- Retail business models will definitely do many more transactions per day than mobile services - between 10-10,000 per day. However their margins are usually small - $5 profit per transaction to $500. With 90% of all transactions under $50 profit per transaction
- In Mobile service based businesses (In Australia or Amercia) you may only do 1-10 transactions per day. However you will probably recieve a min. of $100/hr up to $1000 per hour depending on the industry, and products/services provided.
- It's because skilled labour in Australia pays so well you will find the average tradie can out-earn the average subway store owner (example). Did you know the average subway store owner only earns $60k p.a! This means that a Subway franchisee must own 3 x stores to make a decent living! Now they've invested $900k to $1.5mil but they are still (in Subway's eyes) making a good living because if each store pays itself off - within 5 years - they consider that a good investment!! (Compared to what!?) Compared to investing into real estate the say. "The average houses doubles every 10 years. The average subway store will double every 5 years" Many franchise business owners agree that 5 years is not a good return! If you can get into a franchise where you are likely to have the business paid off in 12 months or under - that's a solid franchise investment to get into!
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