Springfield-based Mailbox It expands in five-state area

by Jill Henry

SBJ Reporter

jhenry@sbj.net

An area start-up is taking steps to become a national franchise.

Mailbox It Stores of America Inc., based in Springfield, rents mailboxes and provides packing, shipping, copying, graphic design and Web hosting services.

Greg Roberts, founder and president of the company, opened his first Mailbox It store in Marshfield in 1996, and there are now 32 stores located in five states.

Roberts began offering franchises in 1998, in response to several individuals who had expressed interest in opening their own Mailbox It stores. In addition to the original store in Marshfield and three stores in Springfield, there are stores in Ozark, Nixa, Republic, Bolivar, Branson, Forsyth, Marshfield and Seymour.

Outside of Missouri, stores are operating in Nebraska, Tennessee, Arkansas and Oklahoma, and plans are being finalized for two stores to open in Texas.

Roberts said he is on track to meet his 2004 goal. "We hope to have 50 stores by the end of this year and 100 stores by the end of next year," he said.

A former graphic designer for Sunbeam in Neosho, Roberts invested about $4,000 in opening the original store at 1200 Spur Drive in Marshfield.

"It doesn't look anything like any of our other stores," Roberts said. "It's an older store, and it's half the size."

New stores, he said, look more like the second of two company-owned stores at 2131 W. Republic Road.

He prefers helping franchisees find locations in newer strip centers.

"People are creatures of habit. Sometimes if something has been there for a long time, they'll just drive on by it unless you're new," he said.

Franchisees can expect to invest between $45,000 and $55,000 to get started, Roberts said, adding that the price covers a turnkey operation including the franchise fee of $20,000.

"For people that don't want to spend over $100,000 to get into a business, which is basically the norm now, they have an opportunity with us to get in for quite a lot less and have something successful," Roberts said.

Royalties of 2 percent are paid by franchisees to the company on a quarterly basis, but no royalties are collected during a store's first year in business.

Roberts researched other business opportunities but made the decision to start from scratch rather than purchase an existing franchise.

"I thought I could do a better job, really," Roberts said. "(Competitors' prices) were unreasonable and I thought we could do the same thing for a lot less and still make a nice profit."

According to The UPS Store's Web site, franchisees can expect an investment ranging from $141,079 - $239,687 to get started.

David Hamm, managing broker for Sunbelt Business Advisors, said Roberts' franchise fee is reasonable compared to other opportunities available.

Similar businesses, such as Business Center Development, a national franchise, offer turnkey packages for franchisees to get started for about $60,000, Hamm said.

Reasonable start-up fees attracted Tom Brumley of Branson to the Mailbox It franchise.

"This was far and away the best opportunity to get into this type of business that we'd ever come across," he said.

Brumley and his wife, Rolene, opened a store in Branson in June and a store on East Republic Road in October. The couple runs the Branson store with the help of several part-time workers, while their son Todd runs their Springfield store. Son Tommy runs his own store in Ozark.

The Brumley family's investment in Mailbox It extends beyond the borders of Missouri as well. Tom Brumley said his brother recently purchased the master franchise in Nashville, and Tom and Rolene Brumley bought the master franchise rights for the state of Arkansas and are looking at opening stores in Rogers.

Master franchise owners control a region, baised on population, and can resell franchises within that region. As master franchise owners, the Brumleys must provide franchisees within their region with the in-store training that Roberts and his staff provides to direct franchisees.

"It is a big challenge, but I'm looking forward to it," Tom Brumley said. "I've been in the entertainment business most all of my life. I've had some other businesses along, but this is one I really enjoy because it's working good right off the bat."

Brumley declined to disclose dollar figures for his stores' sales, but did say both are experiencing "a constant stream of business."

Roberts declined to disclose revenue figures for the two company-owned stores or the franchise, but did estimate how much sales volume a store could expect to generate, based on national averages and Mailbox It store averages.

"Your first year should be somewhere near $180,000 and your second year somewhere near $260,000. (A store) should be making $330,000 to $350,000 a year by its third year in business," Roberts said.

Mailbox It will soon move its corporate offices from the Republic Road store to a new location down the street. The store itself will remain at its current location. The new office will include a training center to accommodate the five days of in-house training required by each franchisee. Roberts also provides five days of training at each new store, and he is there when each store opens its doors for the first day of business.

The two company-owned stores employ a total of six people. Five employees help Roberts on the corporate side of the business, including an operations manager, two trainers, an information technology specialist and an assistant helping to launch a new service, YadaAuctions.com.

"We actually auction stuff off for people who don't want to go to eBay to auction them off," Roberts said of the new service, which includes photographing and listing the auction, and packing and shipping the items once they are sold.