The Truth About Mailbox Revenue: How Much Can Mailbox Rentals Really Make?
Mailbox rentals can be one of the most valuable recurring revenue streams in an independent mail and ship store. But how much revenue can they realistically generate?
In this installment of the Mail & Print Stores of America Due Diligence Series, we take a closer look at mailbox rentals, the potential recurring revenue they can produce, and why the number of mailboxes you install when building your store matters. NOTE: This does not include additional possible revenue from "Virtual Mailboxes"
How Much Revenue Can Mailbox Rentals Really Generate?
Mailbox rentals can provide a valuable source of recurring monthly revenue for an independent mail and ship store. Unlike many services that require a new customer transaction each time revenue is generated, mailbox customers typically pay for their rental on a recurring basis.
The number of mailboxes installed when a store is built can therefore have a significant impact on its long-term revenue potential. In the video above, we look at a real-world example of what mailbox rental revenue could look like as occupancy grows. NOT! EXAGGERATED NUMBERS SEEN IN OTHER YOUTUBE VIDEOS SO YOU WILL CLICK ON THE VIDEO.
A Real-World Mailbox Revenue Example
Consider a store with 220 physical mailboxes. At an average rental rate of $25 per month, the potential recurring revenue looks like this:
100 rented mailboxes = $2,500 per month
150 rented mailboxes = $3,750 per month
220 rented mailboxes = $5,500 per month
At full occupancy, that's potentially $66,000 per year in mailbox rental revenue alone.
And importantly, these figures do not include potential additional revenue from virtual mailbox services, which can create another recurring revenue stream without requiring additional physical mailbox units.
Mailbox Revenue Is Only Part of the Equation
Mailbox rentals can provide attractive recurring revenue, but they are only one component of building a successful mail, ship and print store. Location, store size, equipment, printing capabilities, carrier services, operating expenses and the amount of capital invested all play a role.
That's why we created the Mail & Print Stores of America Due Diligence Series: to give prospective store owners realistic information they can use before investing their hard earned savings.
For a more complete look at the investment involved in opening an independent mail and ship store, watch our full 18-minute Due Diligence episode: “How Much Does It REALLY Cost to Open a Mail & Ship Store?”
Thinking About Opening Your Own Mail & Ship Store?
Before investing your savings, understand what it really takes to build a competitive independent mail, ship and print store.
Mail & Print Stores of America® provides complete turnkey store development, including site selection assistance, store design, fixtures, equipment, carrier setup assistance, training and ongoing support.
Learn more about opening your own Mail & Print Store of America® or request additional information at MailAndPrintStores.com.
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