Stepping into the venture of entrepreneurship is a risk that is worth taking. Though new businesses often encounter numerous fears, it opens the path to self-independence and making your own identity. Embarking into this journey might provide a beginner’s luck, but establishing a foothold in the market often requires collaborations. What if you get a collaboration opportunity from a business giant like U-haul? And that too of becoming a partner without selling your equity! This opportunity might seem like a dream to many, but U-haul actually extends hands to new entrepreneurs.
In this article, we’ll guide you on how to avail yourself of this splendid opportunity and become a U-haul dealer.
Understanding U-haul’s dealership- income potential and benefits:
Before delving into the seamless process of becoming a U-haul dealer, let’s first understand what U-haul’s dealership program is and explore the potential income opportunities it provides. U-haul is an America-based rental company that often provides rental opportunities for trucks, dollies and trailers. Over the years it has become a rental giant ruling the automobile market.
Income potential with Uhaul:
In the past few years, U-haul has been reaching out to new entrepreneurs to partner with them. U-haul does not offer any franchise program; rather it provides a dealership program providing commission to business owners.
You don’t even need to invest a single penny to partner with Uhaul, all you need to have is your own space where you can also place U-haul rental products. The company will pay you a lucrative commission of 21% on each sale. The bigger the space, the more the commission! According to a Glassdoor report the average U Haul franchise owner can earn up to $75,000 annually. The fascinating part is, that this money solely belongs to the business owner excluding the business expenses.
Factors affecting business:
The overall profit gained by partnering with U-haul depends on numerous factors. More space for U-haul rentals in your place scales the revenue opportunities. But even with an average number of U-haul rentals you can earn more money than the total revenue of your business! To increase the operational revenue, the following factors should be kept in consideration
The location of your space often affects business revenue. High-traffic areas are the best locations as U-haul rentals are automobiles. Trucks and trailers are also more common in bigger cities, so if you want to increase income potential with U-haul then choose a high-traffic location.
No of rentals:
Number of rentals is directly proportional to income potential. The more the number of rentals, the more the profit. Efficient inventory and management tactics are required to increase rental. U-haul also provides a complete advertising strategy for this purpose.
The last and most important factor for efficient business is providing active customer service. Customers are investments, and gaining trust from these customers increases the income potential by many folds. Satisfied customers often contribute to a steady revenue stream.
The U-haul dealership program includes a number of diverse services. These services include
This dealership program includes trucks of various sizes as its rentals
Trailer rentals: Customers don’t need to buy a truck, they can rent it and transport their large items for a specified time.
Trailers are typically used to transport goods. These trailers can be rented to customers. U-haul provides you with their trailers and you can rent them gaining a commission.
Moving supplies and U-box services:
In addition to trucks and trailers, U-haul also provides storage options and moving supplies. These include boxes, furniture covers and U-Haul’s box service. These are basically storage containers that can be rented for a specified time. These containers can be stored at U-haul’s facility or customers can also transport them to new locations for a given time.
Becoming a U-Haul Dealer: Franchise Process Overview:
After getting an inference about U-haul’s dealership program, let’s delve into the details of how to become a Uhaul dealer.
U-haul has provided a franchise model. This model helps you understand the policies for partnering with U-haul. As mentioned before U-haul provides a complete dealership opportunity, in this dealership, you buy a rental place under the name of the U-haul franchise, and the company provides you with a license to use the brand’s title including its logo, name and other trademarks. This dealership doesn’t take any equity from you. You can maintain the autonomy of your own business and excel in it by using a U-haul name. As a partner of U-haul, you get access to the products and services of the company. The services range from the provision of trucks and trailers to a storage container for temporary product storage.
In this franchise program, U-haul is a franchise and you are a franchisee getting a license from them. Being a franchisee you can enjoy some other business privileges including access to -uhaul training programs, operational guidance, and financial assistance.
Benefits of partnership:
- U-haul partnership program provides a range of benefits. These leverages provide a competitive edge to new entrepreneurs helping them make a foothold in the market. The .alluring benefits of this partnership include:
- Attracting customers by using the brand name, U Haul is a reputable and reliable brand and using its license will significantly increase sales.
- Providing marketing assistance and training programs to fuel your business.
- Help extend the business to new locations and provide services that will boost the growth opportunities.
The dealership program with a U-haul franchise costs around $5000 as an initial cost and a royalty fee of 5% of your gross revenue.
Advantages of U-haul Partnership:
There are several advantages to a U-haul partnership. The main advantage of a U-haul partnership is the U-haul fast pay program. With this program, you get a variety of options for commission percentage depending on the type of partnership you joined.
All payments are done weekly or monthly and you get paid on time, it is never late with U-haul.
The commission percentages for various programs are mentioned in the table below.
|35%||For the amount collected for equipment damaged during the rental|
|15%||For the first month’s storage rent at participating U-Haul Center or Self-Storage Affiliate locations|
|20%||for U-Haul Truck Share|
|25%||for In-Town® and one-way auto transport and tow dolly rentals|
|25%||for one-way trailer and moving rental items|
|35%||for In-Town trailer and moving rental items|
|60%||for U-Box container monthly rent|
|7.5%||for shipping full containers one-way|
Not only this but you also get paid to set trailer hitch appointments.
Other advantages of the U-haul program include the:
- Extending the connections in the market to increase the market value of your business.
- U-hauls dealer automation system that allows dealers to conduct online deals. And this package is super budget friendly as it starts from 10$ only.
- Direct deposit of commission into any bank account on a weekly basis
- The opportunity of making money through the S.O.A.R (Secured Online Affiliation Rentals) program. This program allows dealers to rent storage rooms for their customers.
- There is a diverse network of storage places, almost 60,000 storage places are present in the USA, you can rent those places to customers and get a commission of 15%
U-haul is such a big name that only its name is sufficient to gain customers and many new entrepreneurs dream to have such a tag with their business. But U-haul does not only provide just its name it provides you with an opportunity to dive into profitable ventures.
It’s important to research prior to joining any program. The reason is there are many programs from U-haul and each program has its own commission percentage. So talk to U-haul dealers who have joined this program already, this will help you get an insight into financial value and make an informed decision.
Steps of becoming a U-haul dealer:
Now that you understand the U-haul’s dealership program, let’s understand the steps for becoming a U-haul dealer.
The first and foremost step prior to joining this program is to do thorough research on the company. You need to familiarize yourself with the terms and policies of the company
Review the FDD document. This document also known as a franchise disclosure document includes all necessary details about the program. Fees, obligations and terms and conditions are mentioned in it.
Check the eligibility criteria, the main criteria are owning a business and having financial stability. Other criteria may include business experience and qualifications.
Align your business goals with U-Haul’s business goals. This will help you grow your business in a defined direction.
U-haul provides assistance to its partners. You can contact the U-haul help centre to get guidance for dealerships. You can also check on their website or call a designated number.
After research work and contacting the company, the final task is to submit the application. Your application should contain the following points:
Complete information about your business, its location and existing services provided by you.
An outline for your business plan including your experience and alignment of your goals with the franchise.
Assessment and approval:
U-haul will review your application and your application will be accepted or rejected depending on your business plan’s suitability with U-haul.
- If your application gets accepted, the next step is the interview. U-haul representative will conduct this interview to get an inference about your compatibility with U-haul
- After approval, you will join the U-hauls training program.
- This training program contains all the details of business management and communication skills to gain the trust of customers.
- You also get access to U-haul services and storage places to rent them to customers.
Contract and Agreement:
After the application acceptance and training, you’ll sign a contract with U-haul. This contract outlines terms and conditions and commission percentage for your dealership.
Here are some tips to improve your business.
- High-traffic areas are always the best choice for automobile locations. These places provide a pool of customers.
- Include more than one service to your business. In addition to trucks, add rentals and supplies to your services to increase rental opportunities.
- Always provide the best customer service. Because customers are your actual investment, who work to gain their trust.
- Stay updated, know what’s trending in the market and upgrade your business accordingly.
Realistic Expectations: Average Income and Growth
- It is said that a U-haul dealership with only an average number of services is worth more than the entire local business. This doesn’t seem wrong because according to Glassdoor’s reports, you can earn from $60000- $107000 per year with U-Haul’s partnership.
- Not only this, you get an increased number of sales from U-Haul’s partnership. You can build customer loyalty by renting renowned brand’s services and your sales are immensely increased.
- You can contact U-haul trainers to find a way for process optimization.
- You can penetrate the market by making links and interactions and gain higher incomes.
Time frame to become a U-haul dealer:
Becoming a U-haul dealer might take some time. This timeframe can range in months. The procedure generally ranges from 2-6 months, this process starts from submitting an application to conducting an interview and finally signing the contract.
Variables Impacting timeframe:
Although a time frame is mentioned for the dealership program it may vary depending on certain circumstances
- Choosing an accurate location takes time. Only those locations are targeted that provide population density.
- The application review process can also take time as there are hundreds of applications.
- Contractual steps might also take time. It’s important for both the company and the dealer to understand each other’s goals and make an informed decision accordingly.
- Compliance requirements and property fulfilment can also take time.
- A business plan is an important requirement. Making a business plan that is fruitful for both parties can take both time and effort.
- Franchise demands and fluctuations can also be time-consuming
In conclusion, the U-haul dealership program is the best business path that beginners can follow. The brand name and label can increase the value of business. The best part is you don’t need hefty investments to start business. Just own a place and put U-hauls rentals there too for receiving a commission. The commission percentage is also appealing. Further, they provide complete training to make you stand out in the market. Just go through their policies and start your business venture with -U-haul.