I am a UPS Store Multiple Franchisee in AZ. Since the rebranding customer counts have dropped in our area on average 20%. Same Store Sales if you taken in consideration the exclusion we use to get on shipping through USPS Priority mail, is down 10%. This does not include the fact that are margins have also dropped 10%, since the rebranding profits at just one of my locations will be down 24K.
The biggest flaw in this re-branding is the customer perseption that the only thing we do is ship packages, thats it. The drop in revenues is coming from packaging, copies, fax, mail box revenues, and especially First Class, and Priority Mail and Stamps.
The older customers, which AZ has a lot of will live and die USPS and wait in the line expecting to save money. What UPSS Marketing needs to do is re-educate the consumer. This will take years probably 3 to 5 years, before the consumer understands. If by April 04' this does not turn around I will put the biggest "I do First Class, Priority Mail, and sell stamps" Banner you have ever see up. At least if I send priority mail I can set my own rates and exclude the cost of shipping on my royalties.
Let me explain were the lost revenues comes from:
Avg. UPS Package Ship from UPSS
Zone 5, 9 lbs.
Retail Cost: $10.25
Published Cost $ 9.35
Incentive $ 1.40
Profit $ 2.30
Less Royalties (8.5%) $ .87
Less iship fee's $ .10
Actual Profit $ 1.33
This number should explain why there are and will be more pissed off UPSS Franchisee's. Remember this does not take into account the employee's time of processing this package which averages about 5 minuets. Which at $8 an hour cost an additional $.70 which leaves me with $.53 to all operation expenses.