| The UPS Store is affiliated with Mail Boxes, Etc., one | | | | The cost of the services that UPS Stores provide can |
| of the more successful franchises, and is also owned | | | | be compared with the cost of having the equipment |
| by UPS. This new franchise operation is growing | | | | on hand at the place of business of the customer. |
| rapidly. | | | | Since some of the services are not used all of the |
| The UPS Stores were born when UPS purchased Mail | | | | time at a business, the cost of the equipment would be |
| Boxes Etc. and offered the rebranding of these | | | | a bad investment. If you only need color copies every |
| franchises to the UPS Stores. Since that time (2003) | | | | now and then, a color copy machine would be an |
| the number of stores has almost doubled. This | | | | unjustified expense. The lower costs of doing color |
| franchise has been rated one of the best available by | | | | copies makes owning this equipment and the service |
| Entrepreneur magazine on the many factors that are | | | | cost an easy comparison. Other services may be just |
| important to a potential franchise owner. | | | | a convenience and not a significant cost difference. |
| The variety of services offered by UPS Stores, is | | | | Each situation must be analyzed on its own |
| allowing these store to make inroads against | | | | merits.Basically the upfront cost must be compared |
| competitors. The UPS stores offer mail delivery boxes, | | | | with the annual expense the customer spends on the |
| mailing services, shipping services, copy services, | | | | service. |
| faxing services and other printing type collating | | | | |
| services using copy machines. This variety of services | | | | A new UPS Store vs an existing one |
| brings in a large number of different types of | | | | This is always a consideration when buying a business |
| customers with different needs. This opens the | | | | or starting a new one. An existing business has a |
| franchise to many cash flow streams. | | | | clientele that has a pattern of using the services. A |
| | | | new business will have to take the time to develop this |
| UPS name recognition | | | | client base. This can mean a real difference in cash |
| The name recognition of UPS would help any | | | | flow for a period of time. The decision is the cost of |
| franchise owner because this name has a long history | | | | the new business versus the cost of the existing |
| with the public. The backing of a significant corporation | | | | business. If the difference in price is really large, the |
| also lets the franchises enjoy the advertising campaign | | | | extra cash flow during the start up period may not |
| backed by a larger corporation These TV ads will help | | | | make up the cost disparity. Each situation must be |
| drive traffic to the UPS Stores. The UPS name | | | | analyzed and compared with facts. The franchise |
| recognition will help a new store get up and running | | | | company can give excellent stats on new companies |
| quickly and create immediate cash flow. This factor | | | | and their growth. |
| has been one of the reasons that the UPS Store | | | | The current owner of a franchise can supply financials |
| franchises are rapidly opening. | | | | on his business. This makes comparisons somewhat |
| | | | easier to do. There is also a Federal law that makes |
| UPS Store franchise costs | | | | disclosure of information by a franchise company |
| The typically new franchise owner will need | | | | meet very strict guideline. These factors will show the |
| approximately $50,000 in liquid assets to acquire a | | | | potential owner which situation makes more sense |
| franchise. This can vary by area the store will be | | | | from a financial comparison. The franchise company |
| located in. The startup cash required will be about | | | | may have some contractual rules that must be |
| $7500 with a total investment over time of a range | | | | followed when buying an existing franchise. |
| from $138 thousand to $245 thousand. Mail Boxes Etc. | | | | If you are considering a new store, remember that |
| will help with up to $50,000 financing for fixtures and | | | | location is a critical consideration. The franchise |
| equipment. The franchise fee at this time is about 29 | | | | company will have very good information on this |
| to 30 thousand dollars. | | | | aspect of a new store. You also should speak with a |
| | | | few other owners of the franchises. |
| The fees and services at a UPS Store | | | | |
| | | | Conclusions |
| The fees charged to use the services at a UPS Store | | | | The UPS name has great value to the franchise and |
| are competitive and in some cases significantly lower | | | | will draw clients to the store. With all of the services |
| than the same service from another business. The | | | | that are offered in a store, this will also help to develop |
| combination of services that the UPS Store offers | | | | a steady base of customers. Businesses and |
| makes it convenient for the customer to get several | | | | individuals will all have reasons at one time or another |
| routine jobs done in one place. A person can make a | | | | to use the services that are provided. |
| copy and then fax it to another party. Color copying | | | | The combination of services that are offered in a UPS |
| used to be very expensive, but the new copy | | | | Store will drive many different types of customers |
| machines have allowed companies such as UPS | | | | through the doors of the business. When they see the |
| Stores to price this service at a very reasonable level. | | | | other services offered they would often find a reason |
| Shipping, mailboxes and sending mail are also offered | | | | to use others than what they came to the store for. |
| at these stores. This convenience of services makes | | | | This extra money spent is the direct result of the |
| these stores very useful to the customers. Business | | | | customer being in the store. Business people and |
| travelers can use these stores as temporary office | | | | individuals will remember the other services offered |
| when traveling. | | | | once they see what is offered when they visit the |
| | | | store. This new perspective of what can be done in |
| UPS Store services compared with buying the | | | | the store will create a new customer use. |
| equipment for your company | | | | |
