Few metrics matter more to business owners than gross profit. In spite of strong sales, franchisees that have to absorb steep operational costs are less likely to see the return on their initial investment they expected.
So, understandably, entrepreneurs seeking out new opportunities want to have an idea of their bottom line before investing in a franchise concept. Most small businesses operate within a gross margin of around 25 to 35 percent.
Double those figures, and you’ll arrive at the gross profit margin of the top-performing quartile of SpeedPro franchisees. Yes, you read that correctly. In 2017, the top 25 percent of SpeedPro studios had gross profit margins of 64.2 percent.* Here’s how they’re able to do that:
Industry Leading-Brand in a Growing Industry
The U.S. wide-format printing market is predicted to grow by 4 percent compound annual growth rate (CAGR) from 2017 to 2021, according to a recent study. In other words, the wide-format industry is projected to see impressive returns in the coming years. The market has always had a healthy customer base derived from smaller businesses looking for effective marketing collateral that generates strong ROI, and the market is only expected to grow. Along with the expanding market, the industry is also growing at a rapid pace, and we’re excited to be leading the charge.
Cost-Effective Inventory and Supplies
Through SpeedPro’s partnership with 3M, as well as our vendor relationships, we’re able to offer our franchisees all the necessary materials for their business at a hefty discount. With more than 150 studios in our system, we have substantial buying power. By purchasing materials in bulk, we’re able to provide lower costs for supplies, inventory and any other goods our franchisees will need. With these significantly-reduced rates, franchisees can slash operating costs and, ultimately, enjoy higher profitability.
Strong Sales
SpeedPro franchisees have benefitted from strong sales for years, even before recent industry growth and innovation. With a B2B focus, our franchisees are able to turn a much higher profit than consumer-facing and retail printers. With most companies dedicating anywhere from 8 to 24 percent of their budget on marketing, including graphics and large-scale visuals, this translates into a significant market for our franchisees.
Not only do we produce work on a larger scale, we also get years of loyal customers and repeat business driving sales. Why? Because we’re not just a printing business – we’re a solutions provider. SpeedPro franchisees provide customers with eye-catching, premium graphics, but even more importantly, they tailor each solution to the individual customer’s needs. SpeedPro owners are an extension of each client business’ marketing team.
For more than 20 years, we have been partnering with relationship-oriented, creative and business-minded individuals to bring SpeedPro to markets across the country. When our individual franchisees succeed, our whole brand succeeds – so the impressive profit margins the top-performing SpeedPro franchisees see are just as good for them as they are for us. By driving down inventory costs and positioning franchisees in a profitable, growing segment, we’ve been able to nurture a strong, healthy franchise system – while propelling our brand to become an industry leader.
To learn more about the SpeedPro franchise opportunity, check out what our franchisees have to say.