Valpak Direct Marketing Systems Information:
Who should consider buying a Valpak franchise?
Valpak can be an outstanding franchise for the entrepreneur who understands direct sales. Valpak franchisee owners work with business owners every day assisting them with their advertising and marketing needs by providing measurable advertising to help them grown their business.
Because the business is managed by Valpak proprietary business management software, it is also recommended that someone in the franchise be responsible for the franchises’ administrative requirements. Very few successful franchise owners have the ability to handle both ends of the business simultaneously.
The majority of franchise owners are “hands-on” and active in the business. If you are looking at Valpak specifically for investment purposes, it is mandatory that you choose a key person who attends all training and is the key contact at the franchise.
Valpak Franchise – Company Background:
• 1968 – Terry Loebel, Valpak® founder, mailed 14 coupons in a local, cooperative envelope to 20,000 households in Clearwater, Fla.
• 1972- First Valpak distributorship established in Orlando, Fla.
• 1982 – Valpak expands into Canada with Valpak of Canada Limited.
• 1986 – Terry Loebel sold Valpak Direct Marketing Systems, Inc. (Valpak) to Prudential Capital who operated the company for the next five years.
• 1991 – Cox Enterprises, Inc. purchased Valpak Direct Marketing Systems, Inc. forming Cox Target Media, Inc. a subsidiary of Cox Newspapers.
• 1994 – Began development of Valpak.com®, an online savings portal by registering the URL.
• 1998 – Valpak celebrates 30 years as a local cooperative direct mailer.
• 2002- Valpak launches its rebranding campaign with the largest advertising support of $7 million and introduces new envelope and moves to a regionally coordinated mailing schedule covering most markets monthly.
Valpak Direct Marketing Systems Products
• In 2002 Valpak mailed 16 billion coupons in 500 million envelopes, nearly tripling the volume since 1992.
• Valpak reaches nearly 45 million unique addresses.
• Through its combined products, including its online savings portal, Valpak.com, Cox Target Media, Inc. delivers a monthly advertising audience larger than the Super Bowl.
• According to recent studies by CCI in March 2002:
• 94% of those who receive Valpak are aware of the envelope
• 80% of those who receive Valpak open and look through every insert
Valpak.com (sources: Jan.- March 2002 Nielsen//NetRatings)
• In 1995 the first coupon posted online, for Fox Photo in Richmond, Va
• Largest collection of local offers on the Internet with more than 30,000 local products, services and national brands.
• Valpak.com generates more than 4.8 million page views per month
Who is Valpak?
Valpak Direct Marketing Systems, Inc. (Valpak) is an indirect subsidiary of Cox Enterprises, Inc. Since 1988 Cox Enterprises, Inc. has increased in size nearly fivefold, growing annual revenues from $1.8 billion in 1988 to more than $11 billion in 2003.
When you own a Valpak franchise you become part of the 5th largest media company in the U.S. The list includes AOL Time Warner, Viacom, AT & T Corp, Walt Disney . . .and COX! Our sister companies include:
Cox Communications, Inc. – Cox Communications (NYSE: COX), a Fortune 500 company, is a multi-service broadband communications company serving approximately 6.3 million customers nationwide. Cox is the nation’s fifth-largest cable television provider.
Manheim Auctions, Inc. – Manheim Auctions is now the highest volume operator of wholesale auto auctions in the world with 115 locations in North America, Europe, and Australia.
Cox Television – Cox entered television in 1948 and now owns 15 TV stations.
Cox Radio, Inc. – Cox entered radio in 1934. Cox Radio is the third largest radio company in the United States by owning, operating or provides sales and marketing services for 82 stations.
Cox Newspapers, Inc. – Cox Newspapers now produces 17 daily and 30 weekly newspapers, including the Atlanta Journal Constitution.
What kind of Field Support is there?
When becoming a franchise owner, Team One Valpak Support Personnel will visit your location to conduct initial on-site administrative and business training. The Team One Department only works with firsts year Valpak Franchisees offering them world-class franchise support. This department includes former Valpak franchise owners. Following the on-site administrative training, a Sales Trainer will conduct sales training at your location. This will be followed with personnel from the VPOffice® team. A financial consultant will also be assigned to first year franchisees to help develop annual financial plans.
All new franchise owners must attend Orientation Sales Training at the Corporate Headquarters in Largo, FL. This program provides an introduction to selling Valpak advertising. New franchisees also attend New Franchise Owner Training in Largo.
How do I know how big my territory is? The size of a franchisee’s territory will vary for each franchise. Valpak generally requires a Franchisee’s territory to include a minimum of 50,000 Prime Households. Currently, Prime Households are any households with annual gross income of $ 20,000 or more.
How does one acquire territories? You can acquire a territory either directly from Valpak, or if it has already been assigned to another franchisee, from that franchisee. There are active territories and dormant territories.
What is a Dormant Territory . . . and what are the costs? Mailings have not been made within the previous 12 months in this territory. The territory fee will be $ 5,000 for every 10,000 Prime Households in the US and $ 4000 for every 10,000 Prime Households in Canada, rounded to the nearest 10,000. Example, if there are 118,000 Prime Households within a territory in the U.S., the territory fee would be $ 60,000, or 12 (NTA’s which is 120,000 Prime Households) x $5,000.
In addition to this, there is a $2,000 franchise fee in the U.S. and in Canada. In addition to this there is a $13,000 training fee. This small amount includes transportation and lodging for several Valpak events.
What is an Active Territory . . .and what are the costs? An active territory is a territory that is not dormant. If the territory is owned by Valpak, Valpak will determine the territory fee or purchase price on a case-by-case basis, taking into account their investment in that territory and the existing and potential business in that territory.
What is an NTA? A mailing is distributed by Valpak to Neighborhood Trade Areas, or NTA’s. This typically represents a geographic area containing 10,000 residential addresses and is designated by postal carrier routes or similar designations.
Does Valpak have a proprietary software program? VPOffice is used by all Valpak franchisees.
How long is the term of the franchise? It is an initial 10-year term with an unlimited number of 5-year renewal terms.
Can anyone else sell in my territory? Valpak operates a National Sales Program in which it solicits advertising orders from regional and national advertisers to be placed into multiple markets. The franchise owner is compensated for those pieces going into the mailing.
In other instances, one franchisee may be working with a client that has sites in another territory. Valpak has also established a program where the selling franchisee is compensated as well as the franchisee that received the ads.
What type of sites do you have on the Internet? Valpak.com is used by consumers throughout the world every day. Most importantly, we know that consumers are taking their time going through the site and taking advantage of offers in their market.
We also have an intranet site. It is one of our most popular sites for Valpak franchisees.
In 2002, Valpak spent over one million dollars in audience research. We have a $ 7 million ad budget, offer nation wide e-mail for all franchisees, and have added such promotional partners as Disney, CBS and Fox, ABC, NBC and Warner Brothers
In 2002, ValpakPlusSM was introduced, an on-line presentation builder program. Valpak continues to offer the most innovative programs and support, thus maintaining our ranking of the #1 direct mail envelope company in North America according to Entrepreneur Magazine.
Valpak Franchise Disclosure Document Exchange FDD