The UPS Store vs FedEx Kinko’s


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”

  1. “Anony-mouse,” anyone who reads this thread throughly will realize what you are, a fraud and liar who has been proved to post under many aliases; I’m not going to repeat posting them here yet again. The content of your posts consistently demeans the hard-working franchisee while you grovel and lick the boots of your idols.

  2. Not a conspiracy, let me clear this up for you. You are pigbacking on the fox news report as if it proves your points. It does not.

    At best, it reflects on two isolated instances in two MBE centers, less than 1% of the total at the time!

    And my statements are not arguments, but true facts, unlike your redundant rhetoric which is not based on anything but your misguided opinions.

    If you want to know the real truth, ask some one who owns one, not some fox reporter trying to make a buck with his constant muck-raking!

  3. “At best, it reflects on two isolated instances in two MBE centers”

    Great, even ‘Ask the Man’ is now seeing the light! Just like Fooledagain recently noted in agreeing with Dave & Myself. Well, I guess you can teach an old dog new tricks!

  4. I cannot believe that anonymous is STILL talking about the
    fox news telecast. Its getting kind of old.

    Regarding the guy who mentioned $5,000 monthly cost for
    staffing. I dont know of many stores that are paying out
    this money. If they are, they are not working in their stores and those that are paying high salaries, are taking money away from their income. The days of paying help
    is obsolete. This is a labor intensive business. Not a sit back while the dough rolls in.

  5. Same old crap. As has already been pointed out, the ONLY way to get that package to LA in five days in peak season was by AIR, as ONLY the highly professional MBE stores seemed to know. AIR was the price they quoted, the other idiots quoted GROUND, which has deferred status during holiday peaks, and WOULD NOT HAVE ARRIVED IN THE REQUIRED TIME.

    Go beg your handlers for new material “Anony-mouse,” if that’s the best you’ve got, you’re even more pathetic than imagined.

  6. Question Fooledagain, why didn’t the owners on video say those things?? Hmm… interesting your comments ‘now’ from the back seat.

    The only thing as rebuttle on the video was candy for the kids and dog bisquits?

  7. Anonymous, put a sock in it. No one cares about some sleazy video from last year.

    You are a one trick pony and it is getting boring!

  8. Discovery

    I am very pleased to inform you all that has put together
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    jump and we have done so. This is a monumental
    task that we will have to accomplish together.
    have dedicated a lengthy amount of time and
    energy to give this group the capabilities to get through this huge task
    that UPS would hope to damage us with. Guess what, UPS will not
    damage us with this phase of our case.
    guidance, has identified what we will need in the area of consultants,
    equipment, hardware, software and location all with approval. What has been accomplished here will be the ability to process
    15 million plus pieces of discovery from our clients as well as UPS in a 6
    month period if necessary. That’s right: 15 million plus if need be!
    The good news is this entire process is already fully funded
    without any financial hardships. One key reason this will happen is volunteering to coordinate and oversee this process. This will
    be a large undertaking with volunteering many hours of dedicated
    work. Our hardware needs are taken care of, and put our
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    , will
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    half with the fact that it will allow our counsel to find anything we have
    in less than half the usual time. We will save hundreds of attorney hours
    with this technology. This will speed up the process for our group so we
    can get to the next stage of the game, as the saying goes.

    Edit/Delete Message

  9. Mr. Hughes…As the legals have advised, please be very careful about posting anything here–or anywhere–that in any way relates to any of the lawsuits in progress. When in doubt, don’t. If they cleared the info, okay. Thank you…

  10. Isn’t it sad that the only rambling the disgruntled few are now making have NOTHING, and I repeat NOTHING to do with improving their business, negotiations, or finding solutions, etc.

    INSTEAD, as seen above, they’re more worried about finding new technology that will reduce attorney fees that have been eating up all their store profits (in hopes of getting to the “next phase”). Geesh, when will the disgruntled few ever learn…?

  11. “Anony-mouse,” anyone who reads this thread throughly will realize what you are, a fraud and liar who has been proved to post under many aliases; I’m not going to repeat posting them here yet again. The content of your posts consistently demeans the hard-working franchisee while you grovel and lick the boots of your idols…or are they your handlers?

  12. “demeans the hard-working franchisee”

    No, I question you, which is far from the above! … and the merits for which you cannot ever explain (due to ‘legal’ reasons) but funny you still enjoy the bashing side at all costs…

  13. perhaps anoynmous would like to explain why UPS has repeatedly refused to meet with representatives of the franchisees. Pretty hard to negotiate when they will not even honor a request to meet and discuss issues!

    It was a high ranking executive paid by UPS who advised the brown board to get counsel when they requested a meeting. The letter was to CEO Michael Eskew though he did not answer and just passed it on to the MBE management for handling. Would you like to see the letter?

  14. I’m into facts Mr.ATM, we’ve heard plenty of your theories, so how about you provide the document that clearly shows UPS “repeatedly refused” to meet with representatives of the franchisees?

    Let’s start backing up your allegations…

    waiting

  15. Letter to Mike Eskew
    July 21, 2005
    To download the Adobe PDF version, click here.
    Monday, July 18, 2005

    Via Certified Mail

    Mr. Mike Eskew
    United Parcel Service
    Chairman and Chief Executive Officer
    UPS Corporate Headquarters
    55 Glenlake Parkway NE
    Atlanta, GA 30328

    RE: The Brown Board Owners Association, Inc.

    Dear Sir,

    It is our intent and an integral part of our Mission Statement to represent the interests of The UPS Stores. With our stated objectives in mind, we felt compelled to inform you by way of this letter, of the concerns and issues as communicated to us by our membership stores, as well as our plans for alleviating the concerns and eliminating the issues.

    A significant sampling of the stores indicates the following: many stores have had to close their doors or have been put up for sale, requiring in some cases that these owners file bankruptcy after losing their life savings. The store owners initially made their decisions based on forward looking statements made by you, as well as other UPS/MBE representatives, concerning the future growth potential of The UPS Store model, mainly The Gold Shield Program.

    Over sixty percent of the network stores are losing money contrary to what is being stated by MBE and the Area Franchisees. Immediate relief is essential and our proposals consist of a short term as well as a long term plan.

    Short term (To be posted on the member’s forum)

    Long term (To be posted on the member’s forum)

    Conversations with prominent financial analysts are of great interest to us. These analysts, who are aware of the problems that exist, predict that based on present performance, the entire UPS Store network will probably collapse within 1-2 years.

    We request that any future agreements or modifications of set agreements not be made unilaterally as has been the policy of MBE. All modifications should include negotiations with the representatives of The UPS Stores namely, The Brown Board Owner’s Association.

    Due to the urgency of the issues and concerns that we’ve discussed above, we request a meeting within a 30 day period with members of our board of directors at a venue of your choice.

    Yours Truly,

    The Board of Directors
    The Brown Board Owner’s Association

    Michael J. Rodriguez
    Phone: (770) 458-3285
    E-mail: mrodriguez@thebrownboard.com

    Larry Bowdoin
    Phone: (334) 462-3843
    E-mail: lbowdoin@thebrownboard.com

    Robert H. Appert
    Phone: (626) 695-7766
    E-mail: rappert@thebrownboard.com

    Barry Barnes
    Phone: (281) 923-1260
    E-mail: bbarnes@thebrownboard.com Aaron D. Fray
    Phone: (302) 737-4847
    E-mail: afray@thebrownboard.com

    Gary Zhou
    Phone: (302) 230-6390
    E-mail: gzhou@thebrownboard.com

    Michael Koch
    Phone: (919) 602-1404
    E-mail: mkoch@thebrownboard.com

    Keith Ogren
    Phone: (206) 624-3313
    E-mail: kogren@thebrownboard.com

  16. Letter to Scott Davis (Updated)
    July 31, 2005
    The Board of Directors of the Association have written a letter to Scott Davis, Chief Financial Officer of UPS, refuting his statements that all is well with the stores. The letter included financial data that supports the argument that over 60% of the stores in the network are below breakeven and therefore losing money. Obviously the store owners are not happy as claimed by Mr. Davis. Please take the time to review the letter below:
    To download the Adobe PDF version, click here.

    Tuesday, July 25, 2005

    Via UPS Next Day

    Mr. Scott Davis
    United Parcel Service
    Chief Financial Officer
    UPS Corporate Headquarters
    55 Glenlake Parkway NE
    Atlanta, GA 30328

    RE: Your recent Media interviews and remarks concerning the UPS Store Network

    Dear Mr. Davis:

    We have listened to your recent interviews relative to the financial state of UPS and have noted with interest your description of the solidity of the parent company of our UPS Stores.

    Unfortunately, it appears that you may have been seriously misinformed about the condition of the UPS Store Network. All is not well with the majority of the stores in the network.

    It is the purpose of this letter to refute whatever sources might have stated to you that “the majority of the stores in the network are happy and that those that are not are a small group of disgruntled MBE store owners”.

    As you are, by now, aware, The Brown Board Owner’s Association was formed in order to provide a unified voice for the store owners of the network. We have designed a Web site and a Forum wherein any owner can voice their issues and concerns. More than 1700 stores have thus far posted their serious concerns, and that number is growing daily.

    A significant sampling of the stores indicates that
    . many stores have had to close their doors or have been put up for sale, requiring in some cases that these owners file bankruptcy after losing their life savings. Initially and in good faith, the store owners had made their decisions based on forward-looking statements made by Mr. Mike Eskew, as well as other UPS/MBE representatives, concerning the future growth potential of The UPS Store model, mainly The Gold Shield Program.

    . over 60% of the network stores are losing money. This situation is in stark contrast to what is being stated by MBE and the Area Franchisees.

    Much of the financial data concerning the performance of the Stores is extracted from the actual data as reported by over 1,000 stores in MBE’s Financial Planner. Additional information comes from said Stores’ monthly Royalty Reports.

    Since the Gold Shield model follows the PACE Economic Guideposts, actual data is compared with the PACE guidelines. Some very important and—we believe—dubious assumptions are contained in these guidelines. For example: Debt Service, Salaries and Owner’s compensation are all (misleadingly?) understated in the PACE model.

    The average level of Revenue for the entire network (henceforth referred to as STR) is approximately $300,000 annually. Our analysis will demonstrate that at this level, approximately 60% of the stores in the network are below break-even and are therefore losing money. We are confident that our analysis is correct and believe, therefore, that you will understand why we take issue with your statement that the majority of the network is happy.

    A detailed Financial Analysis follows and is available on the Member’s Forum. After
    The Financial analysis the letter continues_________________________________

    The above Table concludes our analysis and indicates that break-even is at an STR above $300,000. Since the National average for STR is approximately $300,000 the above supports our conclusion that the Majority (60%) of the stores are losing money and that their owners are definitely not happy.

    As the representatives of the UPS Store owners, we expect to be given the opportunity to sit down with the UPS executive committee to discuss remedies as outlined in our letter dated July 18th and addressed to Mr. Mike Eskew.

    It is significant that FAC has lost all credibility with the membership in terms of their being able to affect change. The perception is that the findings and recommendations of FAC are either ignored by MBE or suppressed.

    We are convinced that the statements made by you during your interview relative to the state of the Network were made in good faith, and as the result of inaccurate information passed on by MBE.

    We do not wish in any way to impact negatively the excellent reputation of our parent company, but you must realize that we are dealing with hundreds of unhappy store owners who must place their own personal interest above all others. It is imperative that we open a dialogue between us, as soon as possible, in order to seek a solution to the Network’s financial woes.

    The Board of Directors
    The Brown Board Owner’s Association

  17. Four years after United Parcel Service Inc. bought Mail Boxes Etc. Inc. and its thousands of retail locations, many dissatisfied franchisees of what is now the UPS Store are wondering why Brown hasn’t done more for them.

    A growing coalition of several hundred store owners has banded together to form The Brown Board Owners Association Inc., a group that is carrying their grievances — centered on concerns of declining profitability — to UPS’ door.

    Brown Board Chairman Mike Rodriguez, who owns a UPS Store in Lilburn, said the company is undercutting its franchisees with lower online shipping rates, expanding low-margin package drop-offs and promoting direct pickup service for small businesses. He said more than 60 percent of the estimated 4,000 U.S. stores (all of them franchised) are losing money, and many owners have closed, sold their stores or gone bankrupt keeping them afloat.

    “Not only does UPS compete with us, but whatever we sell through them, they get a royalty on it besides. They’re double-dipping,” Rodriguez said.

    Not all UPS Store owners are up in arms, however. Sheryl King, who owns a profitable store in Norcross, said she never considered joining the Brown Board because she feels its approach is too confrontational.

    UPS (NYSE: UPS) has refused to recognize the organization. Spokeswoman Brandyn Jennings said franchisees should express any concerns either directly to the company or through the existing owner-elected committees that represent their interests.

    “Neither UPS nor MBE will be meeting with your association,” wrote Don Higginson, senior vice president of franchise relations for Mail Boxes Etc., in a July 27 letter posted on the Brown Board’s Web site. “MBE reserves all of its rights to remedy any damage or harm that your association causes, or threatens to cause, to MBE, including to its valuable relationships with its franchisees.”

    If the Web site’s forum, which is filled with angry postings, is any indication, many of those relationships are already damaged. Regardless, said Rodriguez, a retired DeVry University dean who bought his own franchise in June 2004, the owner-elected committees are ineffective at conveying owner complaints and not truly independent.

    Larry Bowdoin, Brown Board’s president and the owner of a UPS Store in Prattville, Ala., co-founded the group with Rodriguez in April. His franchise, like Rodriguez’s, has been struggling.

    “We’re not a bunch of torchbearing folks who want to go down the streets of Atlanta and burn UPS,” Bowdoin said. “We wouldn’t have bought this franchise if we didn’t think it was a good business. But I support my store each month with my other businesses. There’s no profit at the end of the day

  18. Four years after United Parcel Service Inc. bought Mail Boxes Etc. Inc. and its thousands of retail locations, many dissatisfied franchisees of what is now the UPS Store are wondering why Brown hasn’t done more for them.

    A growing coalition of several hundred store owners has banded together to form The Brown Board Owners Association Inc., a group that is carrying their grievances — centered on concerns of declining profitability — to UPS’ door.

    Brown Board Chairman Mike Rodriguez, who owns a UPS Store in Lilburn, said the company is undercutting its franchisees with lower online shipping rates, expanding low-margin package drop-offs and promoting direct pickup service for small businesses. He said more than 60 percent of the estimated 4,000 U.S. stores (all of them franchised) are losing money, and many owners have closed, sold their stores or gone bankrupt keeping them afloat.

    “Not only does UPS compete with us, but whatever we sell through them, they get a royalty on it besides. They’re double-dipping,” Rodriguez said.

    Not all UPS Store owners are up in arms, however. Sheryl King, who owns a profitable store in Norcross, said she never considered joining the Brown Board because she feels its approach is too confrontational.

    UPS (NYSE: UPS) has refused to recognize the organization. Spokeswoman Brandyn Jennings said franchisees should express any concerns either directly to the company or through the existing owner-elected committees that represent their interests.

    “Neither UPS nor MBE will be meeting with your association,” wrote Don Higginson, senior vice president of franchise relations for Mail Boxes Etc., in a July 27 letter posted on the Brown Board’s Web site. “MBE reserves all of its rights to remedy any damage or harm that your association causes, or threatens to cause, to MBE, including to its valuable relationships with its franchisees.”

    If the Web site’s forum, which is filled with angry postings, is any indication, many of those relationships are already damaged. Regardless, said Rodriguez, a retired DeVry University dean who bought his own franchise in June 2004, the owner-elected committees are ineffective at conveying owner complaints and not truly independent.

    Larry Bowdoin, Brown Board’s president and the owner of a UPS Store in Prattville, Ala., co-founded the group with Rodriguez in April. His franchise, like Rodriguez’s, has been struggling.

    “We’re not a bunch of torchbearing folks who want to go down the streets of Atlanta and burn UPS,” Bowdoin said. “We wouldn’t have bought this franchise if we didn’t think it was a good business. But I support my store each month with my other businesses. There’s no profit at the end of the day.”

  19. Friday, August 12, 2005
    Franchisees of UPS Store want moreAtlanta Business Chronicle – by Ryan Mahoney Staff Writer
    Print Article Email Article Reprints RSS Feeds Add to Del.icio.us Digg This
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    Four years after United Parcel Service Inc. bought Mail Boxes Etc. Inc. and its thousands of retail locations, many dissatisfied franchisees of what is now the UPS Store are wondering why Brown hasn’t done more for them.

    A growing coalition of several hundred store owners has banded together to form The Brown Board Owners Association Inc., a group that is carrying their grievances — centered on concerns of declining profitability — to UPS’ door.

    Brown Board Chairman Mike Rodriguez, who owns a UPS Store in Lilburn, said the company is undercutting its franchisees with lower online shipping rates, expanding low-margin package drop-offs and promoting direct pickup service for small businesses. He said more than 60 percent of the estimated 4,000 U.S. stores (all of them franchised) are losing money, and many owners have closed, sold their stores or gone bankrupt keeping them afloat.

    “Not only does UPS compete with us, but whatever we sell through them, they get a royalty on it besides. They’re double-dipping,” Rodriguez said.

    Not all UPS Store owners are up in arms, however. Sheryl King, who owns a profitable store in Norcross, said she never considered joining the Brown Board because she feels its approach is too confrontational.

    UPS (NYSE: UPS) has refused to recognize the organization. Spokeswoman Brandyn Jennings said franchisees should express any concerns either directly to the company or through the existing owner-elected committees that represent their interests.

    “Neither UPS nor MBE will be meeting with your association,” wrote Don Higginson, senior vice president of franchise relations for Mail Boxes Etc., in a July 27 letter posted on the Brown Board’s Web site. “MBE reserves all of its rights to remedy any damage or harm that your association causes, or threatens to cause, to MBE, including to its valuable relationships with its franchisees.”

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