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.
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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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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.
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Anyone considering a UPS Store franchise needs to have their head examined. As a 10 year veteran of dealing with UPS as a MBE store owner and a UPS store owner I can promise it isn’t what it appears to be. You will be in dept with little hope of ever getting your head above water. In essence you will be buying yourself a minimum wage job for about $250,000. UPS will rob you blind and then take your last dollar if you try to close your store.
Opening a UPS Store will be the worst and most regrettable decision of your life !!!
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Anyone who thinks they want to own a UPS Store just needs to read the comments on the various websites which address this issue. Overwhelmingly owners claimed to have been robbed, cheated and treated like indentured servants by UPS. You are not their partner, you are simply a revenue source for them in terms of providing a location, labor, insurance, utilities etc for their drop off business. You do the work, they make the profits…
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Michael Webster’s comment about the UPS Store same store sales growth is correct. The sales growth only indicates that the individual store are not losing as much as they did earlier. This growth does not address the issue of the store actually turning a profit.
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Anyone who believes anything from The UPS Store people is an idiot. I look at 179 store results monthly and only a very few reach the numbers described in your article. Owners of existing stores say sales and profits are down. New store owners better just get thier attorneys in line for litigation. UPS is a financial terrorist!!!
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I closed my store after 46 months of spending, only to lose everything,
I hope that the all go to hell.
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