In a previous article, I talked about the considerations regarding becoming a Coffee News USA franchisee. In that article I briefly mentioned the basics on the costs and potential sales revenue for this business. In this article, I wanted to get into a little more detail on how to maximize your revenue with this business and maximize your profits.
What does it cost to publish an edition of Coffee News?
There is a weekly content licensing fee that you are charged on a per franchise basis. The fee for your first franchise is $85 per week. If you own additional franchises, those are billed at an just $25 per week. I was told during my experience with this that they generally bill these fees on a monthly basis, but it is recommended you account for these fees weekly to avoid a massive unexpected deduction at the first of each month from your account.
There is also the cost associated with printing the weekly publication to be accounted for. For your first year, Coffee News requires that you use a printer they are affiliated with in Maine who is well versed in the layout and printing requirements of this brand. The average printing cost with UPS Ground shipping to most parts of the United States will come to about $0.10 per copy. When you start running larger editions with more copies, you can expect that rate to drop to as low as $0.06 – $0.08 per copy. The average edition has 2,000 copies printed, making this an estimated weekly cost of $200.
In short, a weekly publication will have an upfront cost of about $285 if you have one franchise with just one edition printing. This is the number we will use for our example here.
What should I charge for my Advertising Space?
There are 32 advertising spots available on your editions of Coffee News USA. The rate you could charge per space will vary greatly and is based on number of locations and consumer traffic. For a simple basis, the recommended lowest weekly rate for one of these ads in most cases is $20 per week.
If you get 32 advertisers to commit to a space at the $20 per week rate, your gross income would be $640 per edition per week. After your expenses of $285 you would net a profit of about $355. This assumes that you run this route yourself and that you do not have to outsource any of the process (sales, distribution, etc.). Granted this may not seem like a lot of money for the effort that goes into the development of a single edition. Be aware that there are nearly no limits to how many editions you can publish within a franchised territory and that you could own up to twenty franchises in total as you grow your business. There is a franchisee in my area of residence that owns five franchises and distributes nearly a dozen editions each week. Even with the cost of hired help, just imagine the potential for net profits from all those editions you would have as you grow your Coffee News USA franchise.
