Owning your own UPS store


#1

I am thinking of looking into owning a UPS franchise store. I am thinking the money I would save in shipping my own internet orders would be a nice amount. I am thinking I can get other people I know who have web based businesses to ship through my ups store. I am thinking the rates I will get I will be able to match the rates of other web based businesses. I think the profit margin would be very very very small in that case as its not a regular retail customer but I think the volume will help my overall pricing with ups.

Am I in lala land dreaming away lol.
Anyone else ever think of this? Or am I nuts! lol


#2

UPS will likely ask you to disclose any existing business partnerships. They will also likely ask to close your online store because of a conflict of interest, where you are taking advantage of reduced rates without having the real-world volume to support them.


#3

I looked into this awhile back after a local PakMail went out of business and I thought about buying it.

The UPS Store gets horrific reviews from the franchisees. You are required to buy all supplies from them (even tape) and have certain inventory levels on hand all the time, even if you don’t use them often. Do some research and you will find that the UPS Store owners can be an extremely unhappy lot. The folks who owned MBE franchises got abused by the UPS store when they took over. UPS can and will change their policies all the time and the store owners have to foot the bill. Zero chance of running an Amazon business out of the back of one of these - every square foot of the store is regulated. You’d be much better off running one of the generic packing/shipping franchises that mark up the shipping price to retail customers. More control. With UPS Store you have zero control.


#4

Interesting. Didnt think of the conflict of interest. I do see the point of my volume not supporting the rate I would get by being a ups store.
I never thought for that small volume that they would have issue and consider it a conflict.
I would think the value of having another franchisee would override the conflict of interest. It would also be hard to enforce.
Wonder how it works. How can they tell if the box is for my own biz or for another biz or a retail customer. Wonder if UPS stores give special rates to volume customers.
Curious about it. Figure cant hurt to ask them.
Guess I will learn and find out! I applied to receive some info about franchising.
Was nice being in lala land for few minutes while I dreamed away till you brought me back down to earth LOL :slight_smile:


#5

Wait until the UPS Store franchise has been sold a few times. The first 3 owners usually go bankrupt or give the business away…


#6

You might be better off opening a Mail Center franchise.

They accept packages from FedEx, DHL & UPS.

Be prepared for a hefty cash reserve in order to qualify.


#7

As a UPS Store Franchisee:

You’re only going to get about 40% off the UPS Published rates. Whereas you could get some pretty steep discounts on your own Account (without owning a Store,) if you do enough volume.

And your going to pay about 10% in Royalties. (It’s actually 8.5%, but Franchisees also pay Advertising that is paid into local “Co-op” group.)

And you’re going to have overhead and employees.

And you’re going to be required to be open part of the day on Saturdays.


#8

Your analysis is spot on. I can’t believe anyone would want to take this on, it isn’t cheap. I don’t know who to feel sorrier for, the people owning this franchise or the people coming in and paying $9 for a cardboard box and a hefty premium to ship a package. I get if you don’t ship, it is just easier and that is why people do it. Much better in my opinion to be unfranchised and do it yourself. I actually have a box there and I know they are envious of the prices I pay for supplies vs. what they have to pay.


#9

In my area, the non-franchised independent shipping store directly across the street from a UPS store does a fairly good business in renting out mailboxes and charging retail prices for shipping with UPS, FedEx, and US Mail. There is usually less of a line than the UPS store, and much less of a line than at the US Post Office which usually has at least 12 people standing in line at all times of the day.


#10

It’s not a bad idea, but as others have said, UPS probably wouldn’t allow any sort of background stuff to go on even though they don’t technically own the franchise. I would probably guess that the rates you’d get as a UPS store wouldn’t be too much different than if you did a fair amount of volume yourself. Also with UPS, you’d be stuck shipping UPS which isn’t always the best option.


#11

Unless you’re a high volume seller, there’s no way this could be a money-saving venture on any level. And do you have any idea how much of a commitment would be involved?


#12

Forget it you won’t make money or be happy. Stick to these > dunkin donuts, subway, gnc, jimmy john’s, gas stations.
If you can afford it…


#13

Thank you everyone for your feedback.
I didnt think the discount was only 40% thats barely anything.
Anyone can get like 30%. I thought as a ups store I would get closer and closer to amazons pricing with UPS. Didnt realize its not even close!
Back to earth I come. They wrote me back today a standard email.
I see that this is a waste of time based on the replies ive received.
So I will have to say bye bye now to lala land.
Have a great weekend!


#14

Hey, that’s what we’re here for. Merry Christmas!


closed #15