In this blog-post we will understand in detail about DTDC franchise opportunity.
One of the most preferred options for people to start their entrepreneurial journey with a low investment franchise business is the courier business or the courier franchise. Moreover, when someone thinks of a courier franchise business, then DTDC emerges as a top option.
DTDC is an established and known courier and logistics company in India. This company has seen both the good and the bad times in this industry. Due to its vintage, high brand recall and low initial investment company has over ten thousand franchisees across India. In this blog-post, we will understand the following aspects of the DTDC courier franchise business.
- How many franchise models does DTDC have, and what are their requirements?
- What should be your strategy when taking this franchise business?
- Advantages and disadvantages of the DTDC franchise business.
- What points to consider before taking a DTDC franchise?
- And how to apply for the DTDC franchise?
Clarity on the topics mentioned above will enable the interested person to decide whether or not to take DTDC franchise business opportunity in India.
DTDC Introduction
The full form of DTDC is Desk to Desk Courier and Cargo. It is a Bangalore-based company which started in the year 1990. Importantly that was a perfect time for private courier companies to make a beginning. With the liberalisation of the Indian economy in 1991, trade and commerce began booming, resulting in enhanced business opportunities for courier companies.
Courier companies like DTDC encashed this opportunity with both hands and had tremendous growth during that period. As a result of a consistent track record of high growth, the DTDC was considered a safe and high-earning business at that time. With the turn of the century, winds started blowing against courier companies. A significant chunk of the courier business came from the C2C (customer to customer) segment. Hence, the arrival of EMAIL dealt a body blow to this business segment. Loss of the C2C category negatively impacted the business model of all courier companies, including DTDC.
Change Is Constant
As they say, change is the only constant, and once again, the times changed with the arrival of eCommerce in India. A robust courier and logistics industry is prerequisite for eCommerce industry to thrive. And the thriving eCommerce players in India are the testament of the robustness of courier and logistics companies. The success of eCommerce players brought rich rewards to the companies like DTDC and its franchisees.
Whenever a company comes out of tough times, it becomes more robust, which happened with DTDC as well. Today, DTDC has 10500 + franchises, more than 12000 offices, 220 international destinations, more than 50,000 workforces, and the company handles 125 million shipments a month. In short, it is a big company with a deep presence across the country. Hence a franchise opportunity with such a company is a great business option.
Taking a franchise of a successful company is fruitful only when an individual has clarity about his/her long-term business plan. Besides when we plan a long term strategy, only earning money can not be part of it. In addition to earning money there should be other reasons as well to take a franchise business.
So let’s now discuss what should be our strategy before becoming franchisee with DTDC.
Strategy Before Becoming Franchisee With DTDC
1) Multiple Franchisees: A DTDC franchisee can make only average earnings in most locations today. Therefore, whoever takes this franchise business should either take franchise of other courier companies also or take this franchise in multiple locations.
2) Stepping Stone: Make the DTDC courier franchise a stepping stone to take the Amazon and Ekart courier franchises. We all know that Amazon and Ekart give franchise only to those with experience in the courier and logistics industry. So those who want to become Amazon or Ekart courier franchisee but do not have experience in this industry can gain the required expertise by taking franchise of this brand.
3) Grow with DTDC: In addition to the unit franchisee, DTDC also has franchise opportunities like master franchisee and super franchisee. So when someone takes DTDC’s unit franchise, they have an opportunity to become a master franchise and super franchise in the future. As a result, a franchisee can increase its earnings and enhance its profile.
So these were some of the strategies that a person can apply when they take this franchise opportunity. If you can think of any more strategy, then please feel free to share as a comment.
Now let’s move forward and know DTDC franchising models.
DTDC Franchise Models
DTDC has the following four types of franchise opportunities.
1) Single Unit Franchise
There are three different types of single unit franchisees
(A) Model Franchisee
A model franchisee’s territory is usually a particular Pincode. This franchisee does booking, delivery and business development in the assigned territory/Pincode. Depending on the population density DTDC has divided its model franchisees into three categories namely category A, category B and category C
(B) Enterprise Franchisee
Enterprise franchisee’s job is to do the pickups from enterprises and corporates.
(C) Delivery Franchisee
This franchisee is required to only deliver the parcels received from the branch. Delivery Franchisee is not involved in the booking of the parcels.
2) Master Franchise:
There is an entire city under the master franchise, and unit franchisees report to it. So those unit franchisees who perform well can aspire for this franchise opportunity.
3) Super franchise:
Super Franchisee has the responsibility of an entire district. All the DTDC franchisee in that district also comes under it. As Super Franchisee is above master franchisee; hence a performing master franchisee can look towards this lucrative opportunity to move ahead in his career. In most cases, competition to become Super Franchisee is tough. As in the entire district, there are multiple master franchisees aspiring to become Super Franchisee and; hence, many candidates for one job. Without doubt only the best gets that position that too as and when it is vacant.
4) Corporate Franchise:
This is a specialised franchise model. Here a franchisee’s job is to tie up with corporates on behalf of DTDC to pick couriers from all its offices or branches. It is essential to have good contacts in the corporate sector to take this franchise.
So after knowing the franchise models, let us understand the requirements of these franchise models.
DTDC Courier Franchise Cost
1. Investment in unit franchise model
Model Franchisee:
Category-A: Rs.1,50,000(approx),
Category-B: Rs.1,00,000(approx),
Franchisee: Category-C: Rs.50,000(approx)
Enterprise Franchisee:
A two wheeler or four wheeler depending on the number and size of the pickups.
Delivery Franchisee:
A two wheeler or four wheeler depending on the number and size of the deliveries.
2. Manpower Requirement
Model Franchisee:
Category-A: 4 persons
Category-B: 3 person
Franchisee: Category-C: 2 persons
Enterprise Franchisee:
1-2 persons.
Delivery Franchisee:
1 person
3. Area required: 250-350 sq ft for model franchisee
4. Other requirements: Computer, printer, bar code reader, and the rest of the office infrastructure.
Growing ahead, let us understand the monthly (running/OPEX) expenses.
Monthly Expenses Of DTDC Franchise
1. Following are the monthly expenses of a unit franchise
Model Franchisee:
Category-A: Rs.1,00,000(approx),
Category-B: Rs.50,000(approx),
Franchisee: Category-C: Rs.25,000(approx)
Enterprise Franchisee:
Vehicle repair and maintenance
Delivery Franchisee:
Vehicle repair and maintenance
2.The company charges 10% of the sale as royalty in model franchise.
3. The company charges 5% of the sale as marketing expenses in model franchise.
So these were the monthly expenses of the DTDC franchise.
Let us move ahead and understand the advantages and disadvantages of the DTDC franchise.
Advantages of DTDC Courier Franchise Business
Following are the advantages of the DTDC franchise business
1) DTDC franchise is an excellent opportunity to work with a well-known brand.
2) Low investment: As we have seen, the investment for the DTDC franchise ranges from Fifty thousand to one lac and fifty thousand, which is quite affordable.
3) DTDC has tie-up with many companies for eCommerce deliveries, including Amazon. So those who cannot become Amazon delivery service partners can deliver parcels of amazon by taking DTDC’s franchise.
4) Attractive Return on Investment: Because the setup cost of the DTDC franchise business is reasonable, investment recovery happens quickly. Additionally, a franchisee can take another DTDC franchise once it recovers the initial investment.
5) The company has seen good and bad times in the past, as discussed in the beginning. Therefore, if there are any future shocks, the company will be better prepared to absorb them compared to the new courier companies.
After knowing the advantages, let us also understand the disadvantages of DTDC franchise.
Disadvantages Of The DTDC Courier Franchise Business
Following are the disadvantages of the DTDC franchise business.
1) As a result of the low initial investment in the DTDC franchise, the chances are high that the monthly income would also be low. Hence a single unit franchise would not suffice in providing sufficient monthly earnings. Apart from this, a franchisee may also have to look at other income opportunities, as discussed earlier.
2) This disadvantage does not particularly apply to the DTDC franchise business only. It generally applies to all the courier and logistics industry. And the disadvantage is that today eCommerce deliveries form the bulk of the revenue for all the courier and logistics companies. Such dependency on any one sector is not a good thing.
3) Due to the increased competition in the eCommerce sector, courier companies will be under pressure to quote the lower charges when they go to tie up with a company. This will bring the profit margins of the courier company under pressure. As a result of the tough competition, the courier companies may reduce the future commission of the franchisees.
So these were some advantages and disadvantages of the DTDC franchise. Let’s now understand the points which need close attention before taking the this franchise business.
If you to know about top 10 Courier franchise opportunities in India then kindly read this post.
Points For Consideration
Following are the points which need close consideration before taking the franchise
1. During the interview with the company, it is critical to determine if the applicant would get amazon deliveries on the pin code for which it has applied.
2. Applicant should include the property deposit in the budget. As a norm, the lessor returns the deposit amount, when the lessee hands back the property. But without a doubt, a property deposit is a cash outflow that may disturb the financial planning if not taken into budgeting.
3. Know the complete breakup of the operational/monthly expenses from the company. For example, the company says that operational expenses in category A is Rs 1 lakh. So what is the breakup of this one lakh? e.g., How much will go into things like the salary and rent? And what are electricity and other expenditures?
4. In the meeting with the company, take all the information on the various incomes that a franchisee can earn. Additionally, it is essential to know the commission structure in detail.
After understanding the points for consideration, let us know how to apply for DTDC Franchise.
How To Apply For DTDC Franchise
To apply for the DTDC Courier Franchise following process should be followed.
- Go to https://www.dtdc.in/partner-with-us.asp
- Kindly fill in the information asked to the best of your abilities.
Frequently Asked Questions
How can I get Dtdc franchise? Or DTDC franchise kaise le?
Getting DTDC Courier franchise business is a simple process. First check the requirements as mentioned in the blog. Then speak with few DTDC franchisees to get their feedback. If you are satisfied then kindly follow the steps as mentions in this blog under the heading ‘how to apply for DTDC franchise’.
Is DTDC franchise profitable? Or DTDC franchise profit per month
DTDC has so many franchisees because they are profitable. What can differ is the level of the profitability. Some franchisees may be more profitable than other.
How much does a DTDC franchise earn?
Earnings of the DTDC courier franchisees vary from one location to another. It is obvious that a franchisee that comes under the ‘catagory A’ will earn more than the franchisee in ‘catagory C’. That is why it is important to take the feedback of a franchisee from near by area.
DTDC Franchise helpline number
Helpline number for DTDC courier franchise is 7305770577
Conclusion
DTDC franchise is a low-cost franchise opportunity with a company that has a high brand recall. But only one DTDC franchise may not be sufficient to earn decent money. Hence it is crucial to have multiple courier franchise opportunities to make a good living.