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”
Video’s don’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
Video’s don’t lie…
But Liars do video’s!
Of course, a Fox News conspiracy against the disgruntled few…
…Of course, a Fox News conspiracy against the disgruntled few……
Not really, just a fox news sensationalist attack on two businessmen! Everyone that knows anything knows that Fox has often reported sensational stories based on half truths, rumors and innuendo. Intelligent viewers don’t consider it gospel just because fox ran it.
Now, as for the disgruntled anonymous one, he believes anything that supports his warped views whether credible or not! – If you don’t care if it gets there on time – or even if it gets there at all – take it to the post office and choke on the new pricing this year on large boxes going to zone’s 5 to 8. Hope it works out for you – LOL!
Ok folks help me out here. Tons of owners complaining like hell about not making any money or losing money. Then we have Dave who is obviously very happy, congrats on that Dave. But help me out here folks, I need real numbers to understand what exactly the problem is. Let me explain:
I am considering purchasing a “The UPS Store” that has been in operation for 4 year. Now the current owner is showing gross sales on average of $20,000 a month. Some months very low and some months outstandingly high, but a strong $20,000 a month average. After paying the 8.5% royalty fee per month, bringing our average to $18,300. How much of that $18,300 per month does the owner get to keep after you take out pay roll and rent? What else do you have to give up to the BIG BROWN conglomerate after you pay the monthly 8.5% royalty fee?
Possible Purchaser,
That store doesn’t sound too appealing, and the $20k per month sales isn’t that strong. I would guess that after all expenses are paid they are not even break even. I’d really examine & question their numbers.
Anyway, that’s not to say it isn’t a potential good investment. ‘IF’ you have a solid turnaround plan, and believe their is good opportunity from what is currently ‘NOT’ being done, then those should be your driving factors.
Hey, this store could be one of the disgruntled few, and we all know how their communication abilities & positive attitude drives in the customers! -smirk-
Anonymous,
Thanks for replying, but it still doesn’t answer my question. Let me explain some more details. I just got some tax paper work from the current owner, showing the annual gross of the store having grown to the $325,000 mark in 2006. What I still am having a LOT of difficulty understanding is: What other monies do you have to give up to UPS besides the 8.5% monthly Royalties?
I am considering purchasing a “The UPS Store” that has been in operation for 4 year. Now the current owner is showing gross sales on average of $20,000 a month. Some months very low and some months outstandingly high, but a strong $20,000 a month average. After paying the 8.5% royalty fee per month, bringing our average to $18,300. How much of that $18,300 per month does the owner get to keep after you take out pay roll and rent? What else do you have to give up to the BIG BROWN conglomerate after you pay the monthly 8.5% royalty fee.
Well, possible purchaser, ask yourself why the big brown conglomerate will not give you honest verifiable answers to these very questions.
You may be required to give up to 3% monthly to a regional advertising co-operative, this takes you to 11.5%.
You will be required to buy new hardware every five years of so at a cost of about $10,000.
In addition to the royalty, you will give UPS anywhere from about 48% to about 85% of the revenue on every package shipped via UPS. On top of that you will be charged 10 cents, subject to increase at the whim of big brown, on each package you process through the mandated software. You will also be charged 40 cents, subject to increase at the discretion of the franchisor, on every package that is packed in your store.
You will be required to give a credit card processor, mandated by UPS, between 2% and 3% of all of your credit card sales and we all know that the plastic society is growing!
You will be required to pay $795 per year in tech support fee to support the flawed software you must use.
You will be required to attend conventions at a cost of up to $2,000 depending on where you are located.
You will be required to sign a ten year lease that could amount to an obligation of more than half a million dollars and before the first dollar comes in.
You will be required to sign a franchisee agreement that gives up your rights and could obligate you to pay continuing royalties even if your business fails.
You and your spouse will be required to guarantee all of this personally so that you cannot simply lose your investment and go on, they can extract your personal funds as well.
I may have forgotten something, but for starters that is a lot to think about.
You will be spied on by secret shoppers and be threatened with termination if you fail to pass. You will be tested on customer service that is not sustainable under the low profit model.
Hope it all works out for you, and that you find something better to invest your hard earned dollars in!
Ask The Man That Owns One, you are a god send. I am very close to signing off on this project and investing my money. I had NO idea there were these kinds of problems between Store owners and UPS…I just happened to stumble on to this website, then found another dozen just like it, and ended up spending the past 2 days just reading all these forums up and down and trying to understand all the problem. You just saved me from making a HUGE mistake. God Bless you!!! I hope everything works out for you in the end, you are a good person. Most people have problems but are too selfish to bother helping others, you are wonderful!! Thanks again for stopping me, before I made a HUGE mistake.
Possible Purchaser,
The monies paid to UPS are the easy part (shipping costs & royalties), but you should be more concerned about your fixed costs & potential to increase STR/Profits.
Fixed costs can make or break any business, and those are the numbers you should be analyzing: Loans (principal and interest), Labor (how much time is the current owner/staff are spending at the store will be a guide), Rent (when does the lease expire), Equipment Leases (number of copiers, etc.), Business Insurance, Merchant Card Fees (credit card terminal), Utilities, and last but not least, Advertising/Marketing (which will be larger given you are taking over the business & probably want to promote new ideas, etc.).
Potential to increase STR/Profits is an entire category on its own … what have you seen that tells you there is strong potential to increase STR another $10-$15k per month during the next few years?? If you can’t quickly answer that question based on your due diligence at this poing, then that should be a primary concern.
I can tell you from the get go that if your looking at any existing business and are not able to look at their balance sheet and p/l and make your own conclusion about the potentials of that business then your probably not a good cantidate for self employment
Ask The Man,
While you have a coy but transparent way of answering questions, I’m starting to think you are in denial that you’re even part of a FRANCHISE. Correct me if I’m wrong, but much of what you babbled about above IS apart of ANY franchise, right???
Franchise models exist for a reason, it just sounds like you want everything now for free. Your comments about tech support fees, signing franchise agreements, even 10 year lease agreements … um, which franchise DOESN’T require similar agreements? Which landlords don’t want to offer a long lease, etc.? If you want to do someone a favor, the better question you should be asking is whether they truly understand the differences between a franchise model and running a business completely independent.
I own two completely independent businesses, and would probably never buy a franchise, in any industry. But that’s not to say franchise models don’t have their place, for individuals who don’t have the experience and need for guidance, etc.
You just sound like the typical know-it-all type, unhappy with anything, and wants everything done your way. … the ideal NON-Franchise prospect. Do us a favor and end your franchise agreement, start your own MPC business, ship & deliver your packages, and show us all how’s is really done!
There is so much hostility on this Forum. Seems to me there are a lot of “Keyboard Cowboys” Who simply get off, on insulting others. Which hiding behind your computer monitors. Is it so hard to just be honest, and discuss these things as mature business professionals? No one said we have to agree on everything, but is there really a reason to go ahead and insult someone’s intelligence or work ethic? Some stores make it, some don’t. Instead of arguing with each other over trivial matters and insulting each other, how about advising each other?
As for the man that left me an unnecessarily rude comment:
“I can tell you from the get go that if your looking at any existing business and are not able to look at their balance sheet and p/l and make your own conclusion about the potentials of that business then your probably not a good cantidate for self employment”
Don’t speak out of turn on something that is absolutely stupid. How do you know if I am a good candidate for self employment? You don’t know me and you certainly don’t know my situation or financial history. Nor do you know about what paper work this store owner has shown me thus far. And quite frankly I have just recently begun exploring the possibility of purchasing a “The UPS Store”. So forgive me for not knowing EVERYTHING off the bat and asking about how the franchise fees and shipping fees and such are paid.
Not a good candidate for self employment? How would you know, Anonymous. Sitting in a cubicle at a UPS hub in New York correcting addresses does not make one an expert on self employment. Possible Purchaser has proven that he’s not a candidate for slavery, the slavery of being a UPS Store owner.
Ignore Anonymous, Possible Purchaser. Anonymous is the UPS plant on the site. UPS is solely responsible for his statements.
New Store Owner, I wasn’t the one who made that comment about being a good candidate… follow along better my puppy, we can’t keep explaining things to you.
Anonymous says
…New Store Owner, I wasn’t the one who made that comment about being a good candidate… follow along better my puppy, we can’t keep explaining things to you…
Could it be that he doth protest too much, and is not his latest statement insulting. I think that was just the same old anonymous peeking out under another alias.
And As far as his latest attack on me, I would be more than glad to prove to him and the world that I can run an MPC better than UPS. Unfortunately, UPS is doing its best to prevent my doing so!
Anonymous says
…New Store Owner, I wasn’t the one who made that comment about being a good candidate… follow along better my puppy, we can’t keep explaining things to you…
Could it be that he doth protest too much, and is not his latest statement insulting. I think that was just the same old anonymous peeking out under another alias.
And As far as his latest attack on me, I would be more than glad to prove to him and the world that I can run an MPC better than UPS. Unfortunately, UPS is doing its best to prevent my doing so!
Possible Purchaser,
Let’s look at the numbers. These are guidelines, but they will be in the ballpark
Revenue: $20,000
Cost of Sales -$10,000 (UPS margin will be slightly less than 50%, but your other profit centers will bump it up to at least 50% or so. I think this answers your original question)
Gross Margin: $10,000
Royalties: -$2,000 (I used 10%. I think this is generous since you don’t pay royalites for postage sales)
Rent: $-3500 (Just guessing)
Employees: $-5000 (couple of full timers, part timer)
Copy leases: $-500 (estimate, you fill in blank here)
Credit Card: $-500
Loan payback: $-1000 (principal + interest)
Other: $-??? (insurance, other expenses)
————————————–
You can tweak payroll and other expenses, but regardless, it looks like you will lose money. If you can substantially grow the revenue to average $35000 during non-December months, it might be interesting. If you see no chance or potential of this happening, don’t do it.
Anonymous’s comments on fixed costs were spot on…your gross margin needs to substantially exceed this to be successful.
As for the quarrels in this forum…hmmm, how should I say this…I think the disgruntled folks greatly exaggerate UPS’s “evilness”, and I think anonymous just likes to raise their hackles for fun…take everyone’s input with a grain of salt and complete your own analysis…you will make the right choice.
Possible Purchaser, it’s already been established that Anonymouse is, at the very least, not to be trusted, and relentlessly promotes UPS’s agenda. Dave may–or may not–be a legit store owner. However, he makes a good point about the questionable potential for the store you are considering. As to his assertion that the quarrels on this forum exaggerate anything, keep looking around. Like here:
http://www.bluemaumau.org/ups_store_tales_gore
If you’re still the least bit interested in purchasing a UPS Store, demand to know the percentage of stores that are have achieved break-even.
Fooledagain says- “he makes a good point about the questionable potential for the store you are considering.”
Great Fooledagain! She agrees with Dave & myself about our points regarding the potential store purchase. Nice to see she’s learning from us…
Dave says- “Anonymous’s comments on fixed costs were spot on”
Thanks Dave!
Fooledagain says- “he makes a good point about the questionable potential for the store you are considering.”
Great Fooledagain! She agrees with Dave & myself about our points regarding the potential store purchase. Nice to see she’s learning from us…
Dave says- “Anonymous’s comments on fixed costs were spot on”
…
Thanks Dave!
Worth repeating:
Possible Purchaser, it’s already been established that Anonymouse is, at the very least, not to be trusted, and relentlessly promotes UPS’s agenda.
http://broadsideonline.com/09-17-2007/missing_artifact.html
“relentlessly promotes UPS’s agenda”
That was funny! You really are the composite of your name, a fool! What specific UPS agenda have I promoted fooledagain? Hmm… I’ve touted recent improvements in online shipping ecommerce, the increase in stronger competition from the US Post Office, Kinkos, etc. I’ve discussed concerns about the declining retail MPC market given the rise in internet shipping, do-it-yourself technology (i.e. all in one printers for copies/faxes, etc.). I’ve also questioned prospective owners rationale for wanting to open a new franchise, as opposed to starting from scratch, or buying an existing franchise, or even being completely independent in another industry.
You on the other hand have offered next to nothing for anyone. You refuse to answer facts not in your favor under the disguise of ‘legal reasons’ but then continue to make negative accusations without any support. You post constant garbage about UPS workers in this country getting arrested for for various incidents that have NOTHING to do with anything discussed in this forum! You attack any successful store owner as being a UPS mole, or any new poster who questions your merits, or Fox News as being part of a conspiracy against the disgruntled few. Your focus here seems to be solely focused on IP addresses as your basis of existence on this blog.
… and you wonder why your lawsuits have gone no where, that why you have no profits left after paying all your lawsuit legal dues, and why you are afraid to actually have a conversation/negotiation with your franchisor to resolve issues & find solutions INSTEAD of just creating another lawsuit.
Truly, fooledagain, you are a fool!
anonymous,
I think you are out of touch with reality. WBFA is not fixated on IP addresses in general. He has only pointed out that it is interesting that you as a UPS mole post under so many different names in your effort to undermine
serious consideration of the issues involved.
Meanwhile you continue with your innuendo, accusing him of being female which he is not. What a childish fifth grade tactic that is. You and Arnold are probably the only adults that think that is the way to debate.
It is well known that Fox News is a sensational network and that the local New York affiliate leads the way in
presenting rumor as fact and playing loose and fast with the truth. This is not something discovered by WFBA, but it is the way it is, and recognized by most as such. Of course with your agenda, you would team up with them and hawk their stories. Birds of a feather do fly together.
You have also unjustly accused WFBA of being an unsucessful business person. Those of us that know him and known his credentials certainly know that you don’t have a clue.
In any event, you need to get a new writer or just slink off quietly. You are getting boring.