Recently I’ve been hearing radio ads promoting photocopy and bindery discounts at The UPS Store. Photocopy? Huh? If this isn’t an example of how to dilute your brand I need to go back to school. *cough*
Why do I say that? Because the UPS brand is all about delivering my package. It’s not about copying in color for only 39 cents a sheet. It’s not about the fact that they can also bind my presentation for me. It certainly isn’t about color prints vs black and white.
Looking back a few years, remember how when FedEx purchased Kinko’s they purposefully kept the Kinko’s name? That was a smart move on their part because for one, Kinko’s had a name. The two brands stand on their own.
When UPS purchased Mailboxes Etc. last year they didn’t get as good a deal. Mailboxes Etc. didn’t have mass market appeal and was more about your neighborhood post office box — not photocopying and printing. Despite this fact UPS is trying to be all things to all people. A big mistake. It won’t hurt them in the long run however they will only dilute the UPS name and waste time and money. UPS means shipping. It can’t also mean “color copies.”
What should UPS have done? They should have made a gutsy move to purchase Alpha Graphics and rebranded the stores as Alpha Graphics UPS. That would have kept both ideas separate in my mind and would have presented a business advantage.
Lastly, if Alpha Graphics had said no I still think it makes sense to purchase Mailboxes Etc., however what was done next should have been different. UPS should have come up with a clever name (something cool like Kinko’s) and launched a new photocopy center overnight.
We all know what this is really about. It’s not about photocopies and it certainly isn’t about helping small businesses print their next set of generic business cards. This is about major shipping services having a location. A place in people’s minds that they can reference any time they need to ship something. In this case, FedEx Kinko’s is doing everything right and UPS should focus on what they do best — shipping.
1,505 responses to “The UPS Store vs FedEx Kinko’s”
Wow, I posted here a year and a half ago. We’re in year three of store ownership and can’t say we’re making any money…but we finally aren’t losing any. Part owing to the SBA loan we took out to finance the purchase and that we started from scratch (no customers). The behavior shown by the NY MBE owner is deplorable. Marking up UPS shipping prices simply isn’t allowable in The UPS Stores. But I here plenty of UPS Store owners camplaining that we can’t increase the prices. Thank goodness it was an MBE store, though branded inside as a UPS Store in all other ways; and all those ridiculous excuses about candy & dog treats. And the guy just stays in business…I guess you can with with kind of markup on fewer customers.
Oregon Store Owner; you understand, I hope, that the MBE stores in NY were quoting prices based on actually getting the package to La in five days during the Xmas season (as the Fox “news” setup parameters specified), which would require air service, not ground, per the other quotes. The MBE quotes were accurate, based on time-in-transit during peak season. The others were not.
Marking up UPS shipping prices simply isn’t allowable in The UPS Stores. But I here plenty of UPS Store owners camplaining that we can’t increase the prices.
Oh, so, you are saying that you resell UPS services at your cost, how can you make a living doing that?
And UPS marks their prices up, charging MBE’s more than they charge UPS Stores, charging UPS Stores more than they charge Remax, JC Penneys and others. So, what is the big deal?
Business 101, retail means mark up, the difference between cost and retail is what pays the rent, pays the help and makes it possible to give better service than the wholesale outlet store.
And facts are that UPS works on an 88% margin, check their financial reports if you think otherwise. They just want you to work like a slave for minimal compensation so they can make more!
Wonder why Dave (our happy store owner) didn’t answer any of my above questions. Or even comment. Why doesn’t Dave want to chat about the real issues. It’s likely Dave is not a real owner just another plant. I can’t tell you how many times I heard this same crap from Area – JKoffs.
This is what they say when you expose them as frauds and liars.
“The “UPS screwed me” attitude is defeatist and serves no useful purpose. Either work with the hand you are dealt, or sell your business”.
NJ Owner,
Aside from Dave not responding, with your negative attitude, it’s a wonder why anyone talks with you!
I hope you’re an absentee owner…
Gee, NJ Owner, between taking care of a kid, my store, and enjoying a mini-vacation, I’m sorry I couldn’t respond in a more timely manner.
I am an owner, and the posts that I made earlier clearly prove this. To answer your questions:
Do you feel that MBE and UPS are doing an acceptable job promoting all our businesses and allowing for store owner profitability? Who benefits most from our forced vendors arrangements and our ad money?
I bought an existing store. The UPS brand is so well known that I would pay royalties for that alone. Everything else is gravy. As for forced vendor relationships, please be more specific. I’m happy with my copier arrangements, and I usually buy everyday supplies from a local store…
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Do you think the FOC contract you signed is restrictive and unconscionable? Is this the business model that you thought it was, and was it presented to you correctly in its entirety? How have conditions changed, and who changed them and why?
I read the FOC and I signed it. Therefore I am accountable to the contract as stated. Nothing “unconscionable” there.
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Do you think UPS has your back if a drop off package burns down your store or god forbid hurts someone after you accept it? Are you compensated for this huge risk and your ongoing services to UPS?
Huge risk? This is not a huge risk. Also, this is why I have business insurance (as my FOC stated)
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Are your shipping rates = to what they should be considering our volume and service to UPS? Do other customers get treated better then us? In a predatory manor are we singled out?
I don’t think so. My worst UPS margin is 45%. I expect a huge corporation to get better rates with UPS than my individual retail store.
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Were the old MBE’ers right to mistrust UPS and are the individuals who choose to litigate the only brave, smart owners who fight the hard fight for the rest of the rubber stamp, lemmings?
I am successful with the current business model. Don’t hold it against me or call me a rubber stamp lemming. It is sad that you can’t accept the fact that we can be successful with the UPS Store brand.
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Do you think you are a valued partner of UPS or a fool with a expensive location to be used and abused as they see fit?
I accepted the terms and conditions. Nothing unexpected…
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Do they purposely piggy back on your customer service levels with out proper compensation?
I accepted the fact that we received a dollar/drop-off. Nobody put a gun to my head.
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Mr. Hughes said:
if Dave grows his STR another 50%,he will be in the same league as most of the litigants. Keep it up Dave!!! (I mean your store)
Nice wit there Mr. Hughes…so clever. You have wonderful business acumen to average $700K gross/year. I wonder where that business acumen went when you agreed to become a UPS Store and had to resort to lawsuits.
…I am an owner, and the posts that I made earlier clearly prove this….
Sorry, Dave, I have seen no posts from you that clearly prove anything – that you are an owner – that your rent is below average – that your revenues are above average. Maybe these things are true, maybe just more manufactured bs like we see so much of!
Thanks Dave, very well articulated!
It’s such a blow to these disgruntled few owners when confronted with successful store owners who are effectively servicing, growing, and marketing their franchise. There only rebuttle seems to be the conspiracy theory, how transparent.
Agains, it’s so easy to simply hope for a handout or expect the name on the front door bring in wealth, but a completely different thing to go out and make it happen yourself!
Anonymous, there you go again, spouting off unsubstantiated
babble. You have no basis for any of your accusations, but that hasn’t stopped you yet!
Ask The Man … based on your collection of comments/rants, if you can’t seem to see yourself as disgruntled, well then, I must say that you are FAR-FAR from being considered gruntled?
Dave, 1st either you ar not a real owner or one with just very limited intelligence. I say that because no one in his right mind would answer the following concerns I listed with such apathy.
1. How can you say that you or (we-network) are getting our moneys worth regarding Advertsing or Purchasing power. When for a franchise 4000 strong I can still find better prices at Costco then MBE can arrange. Why have I never heard one comment in several years of owning my store related to our expensive, uniteresting, misdirected adverstising. Dontcha worry bout a thang! (please!) Why are discounts offered on my stores main service without my permission? Why is discounting the only method used to attract new cheapo flashlight following customers. Could it be that MBE and UPS have no clue what they are doing and are wasting all of our funds. I guess you wont answer that question will you.
2. Since 4 class action lawsauits are pending and a LARGE portion of the “capable” franchise network is sueing the franchisor related specificly to the FOC and other unjust actions. How can you say that you are OK with the document you signed. Did you sign a different one then all those people? If you are OK with it – you are an idiot.
3. If you think your business insurance or your landlord will help you when hazardous materials burn down your store you are even more of an idiot. Check – the news related to situation such as this, check the requirements of your lease and stipulations of your insurance policy. Reading is fundemental. Try it.
4. The fact is that we are not individual when it comes to UPS forced programs and the always changing unjust policys our franchisor dictates and want us to abide by, but when we are priced by UPS we are ALWAYS priced as individual units. I guess this logic makes sense to you. Treated in some ways as a group and other ways as individual.
5. Please define successful as are you obviously are not affected by increasing Drop off numbers. I guess your store is exempt from this profit declining trend.
I guess you are happy working for pennies for UPS and assume all the risk.
6. Do you always accept all terms that are unconscionable by nature and lopp-sided. That spells IDIOT to me.
I realize,
It’s pointless to try and talk to individuals who are so busy kissing UPS ass to look up and see that they are laughing at your ignorance. I dont believe you are a real owner without any of these basic concerns we all have.
Your simply a plant.
“Your simply a plant”
aaaaah, you got me worried there a little NJ Owner. All that babbling and in the last sentence you used the famous the conspiracy theory line. I thought it would have been much more frequent in your rant! lol
NJ Owner just can’t imagine the thought of there are many successful UPS Stores in this network, earning a good living, providing an excellent service, and who aren’t whining for a lawsuit paycheck at every opportunity!
Another Quote from NJ Owner-
“How can you say that you are OK with the document you signed.”
Question- did someone hold a gun to your head in signing your FOC document? If not, you had the same opportunity as the other successful UPS Store owners to plan accordingly & run a successful business…
Get out from the back seat of your broken down / parked car, find one that runs, and start driving… otherwise, you’ll continue going no where!
NJ Owner: Can you admit the following? “It is possible to be a successful UPS Store.” If you can’t, then your input should be disregarded by people who might be interested in starting or buying into this business.
As for calling me a person with “limited intelligence”, I will let the reader review the body of your posts and compare them with mine. He or she can make up their own mind.
As for calling me a plant, Bernie Benson (one of the lead individuals in filing the lawsuit) stated earlier that he believes I am a real owner.
To address one of your comments that stated we all work for pennies on the dollar: I work about four days a week and cash flow is > $100K/year. This is not working for pennies. I love my lifestyle, and I’m sorry if it upsets you that the UPS Store allows me to live this way.
In general: You have no logic to your questions, just a bunch of opinionated, rhetoric-filled drivel that is trying to prompt an emotional response. I’m almost ashamed of myself that I am giving you the time of day to even respond.
For the record, here are areas that I think UPS should improve (off the top of my head):
**Better drop-off compensation.
**Higher margins (especially Canada Standard).
**Promote packing and shipping more than document services. **Lower credit card fees.
Remember, you signed the FOC. You are accountable for your actions (including poor investment decisions). Stop acting like a victim of some corporate conspiracy.
The UPS franchise system is worse then justy a shitty franchise it is nothing short of a well concieved scam. The courts will make this evident. 4 MAJOR LAWSUITS!!! Your are nothing but a UPS/MBE lacky trying to salvage poor store sales. You should be ashamed of yourself as you obviously have no moral compass. Anyone who reads this blog should know to stay far away from this scam. The lengths I have seen corporate / UPS go to force their will down the throughts of hardworking franchisees is incredible. The only drivel that has been spoken here is your responses because they skirt all important issues and put all responsibility on the owners as usuall. This franchise constantly changes the intial agreements and rules to their favor. This can be researched if you talk to enough owners. Make sure not to be directed to plants they will lie because they are in bed with snakes or they are looking to of load their problems.. This franchsie has gotten away with it for a long time, but make no mistake their time is coming. Anyone who enters this franchise knowing what has been discussed here needs to see a psychiatrist. You will likely regret that decision. Arrogance will be your downfall. The internet is getting the real word out. I hope any reader out there understands my sincerity as well as the others here who have tried to put out this important warning. Coruption and manipulation is alive and well as you can clearly see. Redirect your life savings to a better more substantiall investment with fewer soulless sharks involved and you will lead a much happier life. I hope all those that contribute to this problem rot in hell you deserve it.
NJ Owner… please take your meds, enough said.
To the sleezzballs. You know who you are. The judge will decide. The days of this scam are numbered. I can only hope all those good people who lost so much dealing with low lifes like are made whole again. GFY.
….NJ Owner… please take your meds, enough said. ….
Faced with irrefutable facts, anonymous once again resorts to insult in an effort to deflect legitimate discussion.
enough said?
I rather commend NJ Owner for tempering his remarks. There are more than a few who would have been more vehement.
Ms. Disgruntled, we wouldn’t expect any less from you, the disgruntled few…
http://www.dallasnews.com/sharedcontent/dws/dn/opinion/viewpoints/stories/DN-jones_15edi.ART.State.Edition1.425c791.html
http://www.myfoxny.com/myfox/pages/Home/Detail;jsessionid=A277DE9A7164B4639FBF0E1854FFA186?contentId=1755954&version=2&locale=EN-US&layoutCode=VSTY&pageId=1.1.1&sflg=1
http://www.bluemaumau.org/ups_store_tales_gore
Video Doesn’t Lie…
http://www.myfoxny.com/myfox/pages/Home/Detail;jsessionid=A277DE9A7164B4639FBF0E1854FFA186?contentId=1755954&version=2&locale=EN-US&layoutCode=VSTY&pageId=1.1.1&sflg=1
http://www.earthtimes.org/articles/show/108237.html
http://www.thedarkersideofbrown.com/