#SAFranchiseFriday featuring Matrix Warehouse

BACKGROUND
The Matrix Warehouse concept was founded in answer to the market need for a reliable computer shop and it was in the face of strong competition that the first store opened its doors to the public in 2000. However, the success of the concept was quickly determined with four more stores opening the following year. As the business grew it became clear that the best way to ensure personal involvement in every store was to franchise the concept and today Matrix Warehouse boasts a countrywide network of 84 stores.

Matrix Warehouse prides itself on its value for money offering, its outstanding support and service and keeping abreast of continual developments in the IT market.

THE CONCEPT
As a competitively priced, complete IT solutions provider, Matrix Warehouse outlets engage in the retail distribution of complete desktops, notebooks, tablets, PC components, peripherals and software.

In addition to computer hardware and software they offer networking, repairs, upgrades and complete IT solutions for home and business. All components used are registered brand name products, ensuring a high quality finished product and a below average failure rate on custom-built computers of less than 0.5 percent.

Serving the needs of the ever-growing segment of personal computer users, the Matrix Warehouse target market includes all computer users, whether for personal or business use, as well as anyone requiring a custom-built computer.

The ideal location for establishing a Matrix Warehouse outlet is a well-known address in a respectable shopping centre that offers reasonable rentals, ample parking and high visibility.
A typical Matrix Warehouse retail shop will employ three to five staff members to support the franchisee.

FRANCHISOR SUPPORT
Matrix Warehouse's franchise support team use their extensive franchising and industry experience to guide franchisees in the running of their businesses.

The comprehensive franchisee introductory training conducted over 28 days at the Matrix Warehouse head office covers all aspects related to running a successful Matrix Warehouse outlet, including product training, business management and marketing techniques.

In an industry that lends itself primarily to destination shopping, consistent advertising is a must. The franchisor consistently engages in advertising promotions that highlight its value for money offering and raise brand awareness. The franchisor bulk buys stock from local and international suppliers and passes the benefit of its group purchasing power on to the franchisees.

FRANCHISEE PROFILE
While an IT qualification is not a prerequisite, knowledge of the IT field is recommended. Applicants should possess a strong business background with the necessary retail and managerial experience to run their own business.

SNAPSHOT
HISTORY
Founder: Justin Lowe
Year founded: 2000
Area of origin: Alberton, Gauteng
CEO: Justin Lowe

NETWORK
1st SA franchise opened: 2003
Number of SA outlets: 84

FRANCHISE AGREEMENT
Management fee: 5% of turnover
Marketing fee: R1 000 pm
Agreement term: 10 Years
Renewal term: 10 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: From R750 000
Franchise joining fee: R114 000
Working capital required: From R200 000
TOTAL average set-up cost: From R1,064 million
Average monthly turnover: R420 000 to R600 000
Achievable gross margins: 28%

WANT TO KNOW MORE
Contact Deon de Wet on +27 11 869 2613 or email deon@matrixwarehouse.co.za
www.matrixwarehouse.co.za