UPS Store Franchise Owner Says You’d Succeed If You’d Stop Whining
April 24, 2008 by Sean Kelly
Filed under UPS STORE, xBuyer Beware
(FranchisePick.Com) A while back I asked: Is The UPS Store a Good Franchise Opportunity?
The 60+ responses from franchise owners were mostly negative, along the lines of:
“The Ups store franchise is a scam”
“UPS is a unique franchise as it is the only one I know of that directly competes with the owners of the stores.”
“It is rated among the worse… It is estimated that at least 50-60% of all UPS Stores are losing money.”
“Run now while you can…”
“Money Pits…”
“The UPS Store is biggest hoax since Enron.”
John sees it differently. He’s making a fine living buying up your crappy businesses for a song while you’re in the back room whining on FranchisePick.com (and a fine place to whine it is!). Here’s the situation according to John [emphasis mine]:
I’ve had several MBEs and coverted all of them into The UPS Store locations.
I’ve been doing this for 14+ years and I’m not doing it for nothing. Buying and operating a TUPSS franchise is like owning and operating any other small business, whether it’s a franchise or independent. While I don’t know the specifics of the business failures of many of the posters on this topic, I am aware that some of them are Extremely angry about their situation, and that they have spent a tremendous amount of time tearing down the value of this franchise over the past 4-5 years.
The hard facts are that MANY TUPSS owners make a very good living with their stores. Mike Rodriguez’s comment that 50-60% of the stores are losing money is so absurd that it’s laughable. The successful store owners spend their time working on their businesses, not posting all over the internet how successful they are.
There are unhappy franchisees in every franchise system. I’ve talked with many of them over the years. Franchising is about using the franchisor’s business management system or operational model. It has been my experience that most of the franchisees I’ve talked with who are unhappy with TUPSS, do not even come close to following the guidelines and business management system provided by the Mail Boxes Etc, which is the franchise company for The UPS Store.
If you think you are interested in owning a TUPSS franchise, you should talk with as many TUPSS owners as you can. AND, you should talk with owners of other franchise businesses as well. Go visit your local SCORE (Senior Core of Retired Executives) office and get advice from other small business owners. Don’t base your decision on the opinions of ONLY the franchisees who are angry, and please, if you do listen to their advice, arm yourself to ask the right questions to find out the root cause of their failure.
If some one chooses NOT to follow the franchise business system they purchase, they ought not to blame the franchise company for their failure. Franchises that are operated by the book by people with the requisite business and personal skills are generally successful. There are always situations that can’t be foreseen, such as an anchor tenant moving out of a strip mall, which can have a very negative impact on an individual business, but that’s not the franchise company’s fault.
Owning a small business is both rewarding and difficult. If you’ve done the proper due dilligence to invest the money, you’ll likely make the right decision and be successful with the business. Don’t let the naysayers keep you from investigating what may be an excellent opportunity for you.
WHAT DO YOU LAZY WHINY SLACKERS THINK? SHARE A COMMENT BELOW (if it’s not too much effort).
__________________________
Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.
.
Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.
Ok, John, you said what they told you to. MBE will show you their appreciation by giving you first crack at buying the failed stores for pennies on the dollar.
Since you think the absolute proven fact that a high percentage of the TUPSS are not breaking even, how about you tell us how many are successful and back it up with facts not fiction.
How many are breakeven or better, how did you determine this?
How many are making $75,000 per year after all expenses which is about middle management income without having to buy your job. Someone financially at risk should make a lot more.
Most of the individuals purchasing these stores have been successful in the corporate world. The are not failing because of their lack of ability, they are failing because of a seriously flawed business model.
Sure, there may be a few that are making a good living from extremely hard work, plus a certain amount of skill, luck and ambition. Not all locations are equal, but I also have talked to a lot of the owners AND I have not met one who feels that they are better off today then they were five years ago before UPS decided “if it’s not broke, break it” - and replaced a perfectly sound business model with one that five years later has not even accomplished the first year goal of a 39% increase in volume.
Sure, they are playing mickey mouse games like changing the measure from subject to royalty to adjusted gross sales to increase the numbers, but the bottomline is that the meager sales increases coupled with dramatically higher costs has squeezed the operators severely.
In addition, I know most of the multiple center owners and I do not know any named John that have owned more than three locations.
So, folks, when it comes to UPS, remember “We trust in god, all others must be verified” Check everything you are told carefully, read every word in the documents and never believe it is not in there to give them the advantage to your detriment.
John,
Why in the hell do you think approx 400 stores are currently in litigation with UPS? Wake UP!!!
The true answer is that these stores are only for the benefit of UPS to save MILLIONS, and MILLIONS of dollars per year by consolidating the drop offs to your location, and what do you get?
1.00 per package. This is lost revenue to your store. Kool-Aid taste great huh?
When ever a franchisor has stores failing, they ALWAYS blame the individual owner. ALL franchises do this. So John, it looks like you have a vested interest in keeping the scam going with The UPS Stores.
Here are some factual statements ( won’t name names, so I won’t cite sources)
One of the highest stores ( based on STR) in the midwest is a member of one of the lawsuits. This person has been around for many years before the conversion and has an extensive background in financial institutions. If the business model that UPS/MBE has created is so very profitable, why would he be a part of the lawsuit?
The latest estimate of break-even for a new store is in excess of $325k. in annual sales. How many stores actually do this level of sales? Looking at our own internal reports, it is <60% of the network!
If this is such a good investment, why aren’t the store appreciating in value? There are so many for sale and the value of these units are less than the $250k it took to open it up.
In NO other franchise is your franchisor your biggest competitor. UPS has stolen customer records from franchisee store databases, they dictate the shipping charges and then unsell the UPS Stores via the internet, the give pricing discounts to real estate agents that are LESS than the cost a store owner pays for the same product.
Your last comment really shows how you speak from both sides of your mouth. First you judge store owners who actively post their concerns on the internet by labeling their efforts as a waste of time. To you, all of that time should be spent chasing customers to sell goods and services that, under the current business model are not profitable. Then you suggest that these same folks ‘waste’ time responding to you!
We post to help each other survive and to prevent others from losing their life savings by buying into this franchise. Our post on this site serve that purpose. What purpose does your post serve but to degrade fellow store owners and perpetuate the deception of the UPS Store model.
Shame on you.
If The UPSS is so wonderful why did they have what a net gain of 26-27 stores last year. they are losing stores as fast as they can sell new ones. Folks this is a broken system and a financial disaster for many UPSS’.
I PROPOSE A DUEL
Are you each willing to advance the debate from the abstract to specifics? I will set up posts for the dueling submissions.
It will be TCS (Team Corporate Suckups) vs. TLS (Team Lazy Slackers). At the end, we’ll open it up for a public vote. No legal fees, no drawn out court cases, just our version of Franchise Idol. The winners get to change their team name to whatever they want, and the losers will keep their moniker on this site from that day forward.
John and the TCS: Can you get me a list of ten successful stores that you think are run in accordance with the company’s guidelines and that show that the The UPS Store model, if diligently run on typical-to-good circumstances - will be successful? Store location, when founded, owner’s names, estimated revenue, type of area and a picture for each would be great, but not an absolute requirement. No stores with extraordinarily high traffic or uncommon locations.
BS and the TLS: Can you get me a list of ten unsuccessful stores (open or closed) that you think are or were run in accordance with the company’s guidelines and that show that the The UPS Store model, even if diligently run on typical-to-good circumstances - will be not successful? Store location, when founded, owner’s names, estimated revenue (and basis for that estimate), type of area and a picture for each would be great, but not an absolute requirement. No stores with extraordinarily poor traffic or uncommon situations, please.
A priority will be placed on promoting - not maligning - any open stores and their owners.
What do you think?
Is your side ready to back up its claims with examples?
You’ll be able to post your info on the stores directly, and I’ll give you a place to email the pictures up a place to upload.
Here’s a chance to prove your point with real-world examples:
The UPS Store Franchise: Follow the System and Succeed!
The UPS Store Franchise: This Dog Won’t Hunt!
Add to the list that many MBE corporate guys have moved on as eBay drop off store franchisors, which are having the same type of problems!
Sean;
Your challenge to pit the ‘lazy’ store owners against the ‘lying’ franchisor via a team contest is simply a vehicle for you to get traffic to your website. Like most ‘reality’ shows, there’s nothing real happening here except your self promotion.
To my fellow store owners I say- don’t waste your time promoting Sean’s website. Once again, Shame on you Sean.