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UPS Store Numbers

Interesting nuggests of information about the UPS Store outlets…

Since the acquisition, a UPS spokesman says, overall sales have grown “impressively.” The company doesn’t break out results for its retailing chain. But sales data reviewed by The Wall Street Journal show that domestic UPS Store outlets averaged about $295,000 in revenue last year. Five of the stores had more than $1 million in sales subject to royalty. That number excludes the sale of stamps and other postage and some weekend delivery charges. Mr. Mathis adds that same-store sales, a key indicator, rose last year.

As for capping prices franchisees can charge, the company says it did so because “our research showed that the high rates franchisees were charging simply didn’t sync with what customers were willing to pay.” Customers also found differences from store to store confusing.

Hat Tip, as usual: Paul Steinberg in the forum

While I can understand that pricing consistency is an important marketing tool, it hasn’t hurt McDonald’s or other fast food franchsies that drift from the menu and $.99 specials often. It would be clever for the UPS stores to try and open up “eBay drop off” concept and co-brand it….similar to Dunkin’ Donuts, Baskin Robbins, and Dunkin’ Deli. It would generate a lot of PR, drive business, and reposition the brand as a high-tech, small business friendly store.

About Ryan Knoll

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9 comments
masterjude
masterjude

I'm working on opening a UPS franchise in south Flirida

.pembroke pines, Davie or Plantation.did you thonk it's a good idea..

I'm a stock clerk at Publix super market for 4 years and still part time..I drive Uber also..making $11.80 at Publix.and about $350 to $460 with Uber..

Trying to get a lian from SBA do you think it's a good idea

Truth to the UPS Store Franchise
Truth to the UPS Store Franchise

In my personal observation by reading financial data and conversation with store owners, about 60% of the stores are under performer and about 25% are losing money, even after 5 years of opening a store. About 25% of the stores make an average of $40-$60K/year net profit (including owner’s salary). Just about 10% of UPS Stores make an average of $65 - 100K net profit (including owner’s salary). Most of these high performers are run by the owners and usually they are in high income areas, with a 50% residential to businesses ratio in 2-mile radius. Most of these stores are also 10 years or older, have favorable rental leases and usually have paid off their copier leases etc. Most of the customers tend to be local. So do not open a UPS store with McDonald's mentality and rely on traffic patterns to predict future success. Most of successful stores are again, in wealthy neighborhoods and bigger shopping centers with at-least 6-8 miles or more away from another UPS Store. Hope my observation and experience will help new investors who get sweat talks from area sale rep and make poor decisions. In the last two years, for every one new store opened, about 2 have closed down. In any given market, about 40 -50% of the owner is looking for a buyer, means turnover ratio is very high. .

Suzanne
Suzanne

I have been really wanting to open a store, but I have been reading so much negative talk from many sites that I am not so sure now. It seems like such a good franchise, but it also seems as though there are so many like myself that are unsure now after reading these many negative posting. What to do?

Platinum Shield
Platinum Shield

See the video... http://www.youtube.com/watch?v=6dMgO7eGXq4 UPS to finally face the jury! Trial begins April 26, 2010. After a 7 year wait, Mail Boxes Etc franchisees will get their day in court. To show your support, follow us at www.twitter.com/upsontrial, Become a facebook fan of Platinum Shield Association. Did you know that at the time of the 2003 conversion, there were over 3500 MBE stores in the United States. Today there are LESS than 80!!!

Stuart rots in Hell
Stuart rots in Hell

I closed my store after 46 months of spending, only to lose everything, I hope that the all go to hell.

Michael Webster
Michael Webster

I think that the response by Mathias may have been an earnings claim, which also misleading because it does not describe the typical franchisees experience. Interestingly, under the new proposed biz op rule by the FTC, the definition of an earnings claim is enlarged significantly.

Anthony
Anthony

I don't think people expect pricing consistency anymore. What UPS should do is offer the lowest price if people print their label and pay online, and then schedule a pickup or drop it off at the store. And then let the stores set their own prices. If stores charge too much, they'll get less customers because people will just print the postage online.

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