Google Answers Logo
View Question
 
Q: Viability of independent mail box stores; this is preferably for "Hummer" ( Answered 5 out of 5 stars,   3 Comments )
Question  
Subject: Viability of independent mail box stores; this is preferably for "Hummer"
Category: Business and Money > Small Businesses
Asked by: johnster-ga
List Price: $75.00
Posted: 10 May 2005 13:18 PDT
Expires: 09 Jun 2005 13:18 PDT
Question ID: 520105
In investigating many franchises, I've come across one that calls
itself a non-franchise, called "Business Center Development".

For a flat fee of 75k, they'll help you pick out a site, furnish it,
and give you a wide variety of equipment to handle mailings, post
boxes, gifts, promotional items, signs and banners (extra) and other
things that can match any UPS store or Quik Copy, etc.

The up side is you don't pay any fees or royalties after that, but the
down side is you don't have any market brand or group advertising. The
officials of this group say that "down side" is by far offset by the
lack of fees and royalties in the coming years. Also initial fees on
UPS stores, e.g., are far in excess of what they charge.

Hummer, my question is: How viable are independent mail box stores, offering
many services, in this land of chains. The officials of this group
also indicate that my prices could beat out those of the chains since
I don't have to pay an excessive franchise fee or royalties.

Can you do some research and get back to me.

Thanks

Johnster

Request for Question Clarification by hummer-ga on 10 May 2005 16:43 PDT
Hi John - good to hear from you! 

I'll have a look for you tomorrow and see what I can turn up. 

Till then, hummer
Answer  
Subject: Re: Viability of independent mail box stores; this is preferably for "Hummer"
Answered By: hummer-ga on 11 May 2005 18:03 PDT
Rated:5 out of 5 stars
 
Hi John,

Let's see, where to begin.  I can't really find any concrete reasons
why not to give it a try if you think it would be something you would
enjoy doing. I understand that Business Center Development is not a
typical franchise, but given that the franchise, "The UPS Store" (used
to be "Mail Boxes Etc"),  is listed in the Top Ten Franchises for 2005
list (it ranks fifth) and is also ranked tenth in the Fastest-Growing
Franchises 2005, and that there are four other postal franchises
listed in the Top 500,  I think we can infer that the mailbox stores
are doing ok.  Small businesses are going to continue to grow and need
such services.

>>> Postal Franchises

The UPS Store
UPS Store, The (formerly known as Mail Boxes Etc.)
Rankings in Entrepreneur magazine 2001-2005
Franchise 500® rank:
#5 (2005) ; #6 (2004) ; #15 (2003) ; #11 (2002) ; #2 (2001) 
Ranked #1 in category in:
2005 , 2004 , 2003 , 2002 , 2001 
Fastest-Growing Franchises:
#10 (2005) ; #20 (2004) ; #23 (2003) ; #20 (2002) ; #7 (2001) 
America's Top Global Franchises:
#6 (2005) ; #5 (2004) 
http://www.entrepreneur.com/franzone/details/0,5885,12-12---282553-,00.html 

Top Ten Lists for 2005
5. UPS Store, The
http://www.entrepreneur.com/franzone/topten/0,6840,12-12-2005,00.html

123. Postal Annex+
$58.8K-178.7K
http://www.entrepreneur.com/franzone/details/0,5885,12-12---282709-,00.html

339. AIM Mail Centers 
$110K-178K
http://www.entrepreneur.com/franzone/details/0,5885,12-12---282074-,00.html

419. Pak Mail
$115K-147.8K
http://www.entrepreneur.com/franzone/details/0,5885,12-12---282661-,00.html

447. Postal Connections of America
$113.9K-147.9K
http://www.entrepreneur.com/franzone/details/0,5885,12-12---288114-,00.html

The Mailbox Stores
Required Capital: $29,995 - $59,995
http://www.franchiseforsale.com/franchises/595337/themailboxstores.php

>>> Associations

If you do open an independent mail store, I would like to suggest
becoming a "Neighborhood Postal Center" by becoming a member of the
Associated Mail and Parcel Centers, Inc.  It would give you the
advantages of being able to display a known "brand" and added exposure
(there's a store locator on the AMPC and NPC websites).

Associated Mail and Parcel Centers, Inc. (AMPC)
"AMPC is the leading association of independently owned Mail &  Parcel
Centers with over 2700 members."
http://www.ampc.org/index.htm

Neighborhood Postal Centers (NPC) 
"Neighborhood Postal Centers is simply a "brand name" that has been
established for members of AMPC.  This brand name will allow customers
to 'find' our stores in a much easier fashion.  Consumers and large
businesses looking for shipping or mailing locations can find a store
instantly by checking our web site at www.neighborhoodpostal.com. "
http://www.neighborhoodpostal.com/

Mail and Parcel Center Owners Association
http://www.mpcoa.org/pages/1/index.htm

>>> BCD

It would probably be easier to find information about BCD if it were a
franchise, but as it is, we only have their own advertising to go by. 
Apparently, they've been in business for ten years, so they should be
able to supply you with some figures.  They claim to have opened 175
stores, ask them for a list of those stores and make a point to call
at least a few to find out if they would recommend doing business with
BCD.

Business Center Development
Capital Required:
? Total Capital Investment: $74,500 - $100,000
? Liquid Capital Requirments: $25,000
"Business Center Development is complete pack n Ship business without
the expense of franchise fees or royalties. BCD has been in business
for over 10 years and has opened over 175 stores."
http://www.bizbuysell.com/bbs/fd/brochure.jsp?catname=bizservices&b=d&fdname=bizcenterdev

Cash Requirements: $20,000
Total Investment: $75,000 + working capital; $150,000 net worth required
http://usatoday.franchisesolutions.com/index.cfm/fa/adpage/job_id/16257/lsource/11

BCD for sale: $60,000: Kansas
http://us.businessesforsale.com/us/advert139393.aspx

Additional Links of Interest

Sample Business Plan for "Box and Ship"
http://www.nxlevelmontana.org/Documents/E10.pdf

Box Busters
Post office puts squeeze on private mail service
http://www.laweekly.com/ink/99/32/news-collins.php

I hope this is what you were looking for. After spending the day
researching and thinking about this, being aware of what little I know
about you, I have better feelings about this compared to how I felt
about the mobile homes. In general, I think independent postal centers
reasonably well (location, location, location), just try to find out
all you can about BCD and the people you will be dealing with. It
would be great if you could call some of their stores, perhaps that
listing in Kansa would be a good place to start.

Thank you,
hummer

Google Search Terms Used:

mailbox franchises
mailbox independents
Business Center Development
independent postal centers
postal stores
postal centers
mail stores
johnster-ga rated this answer:5 out of 5 stars and gave an additional tip of: $75.00
Hi Hummer,

You did a very good job as usual.

Johnster

Comments  
Subject: Re: Viability of independent mail box stores; this is preferably for "Hummer"
From: hummer-ga on 12 May 2005 10:47 PDT
 
Dear Johnster,

As usual, you are very kind. Thank you for the generous tip, I'm happy
you are happy but I must admit I was looking forward to your
clarification and the beginning of our little discussion. I hope you
are ok! 8-)

I do hope that you'll think of me and let me know what business you choose.
Take care,
hummer
Subject: Re: Viability of independent mail box stores; this is preferably for "Hummer"
From: johnster-ga on 12 May 2005 18:51 PDT
 
Hi Hummer,

I don't know what you quite mean about clarification before our little
discussion. The only comment I received from you was before you
started working on this question was that you work on it the next day.

And what does , " I hope you are ok! And what does the 8-) mean?
The know there is one for a happy face or a sad face, but what does this mean.

Please enlighten me.

Also, are you able to do private search work other than through this forum?

Johnster
Subject: Re: Viability of independent mail box stores; this is preferably for "Hummer"
From: hummer-ga on 12 May 2005 19:17 PDT
 
John, sorry if you found my note cryptic (I was trying to be funny but
that doesn't always work in writing, does it?). In regards to a
clarification, in our passed encounters, we usually posted back and
forth a number of times before coming to the end. I was making a
little joke that I hoped you were feeling ok because you didn't post a
clarification before closing the question (I included a smiley face
with glasses).

Thank you for the thought regarding private work but sadly, GA
researchers are not allowed to communicate privately with GA
questioners or do private research.

8-)
hummer

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy