UPS ponders a new look

[wkmac]

dannyboy,
Now that the MBE's will be rebranded as UPS Stores, I would think prices will be standardized. I'm also glad to see that the franchisees will be allowed to continue to offer other services from FedEx, Airbourne, etc. but we'll see how many total stores convert to the new UPS Brand. It's one thing to announce you're doing something and another to actually get it done. With the always potential of service disruption from labor unions I'm not sure how tightly wound with UPS these small business owners want to get. I'm not sure I would if in their shoes and I'm a Teamster member. LOL!

This again is just more evidence that UPS management and the IBT need to develop some system that provides a good relationship who's fruit is a "no strike" clause that all parties involved could feel good about. JMO.

 

[wkmac]

As time rolls on, more and more info is coming forward about the conversion of the MBE's to UPS Stores. On the one hand, I want UPS to get every competitive advantage it can but I'm starting to side with these MBE owners who don't want to convert. Although I admit to not knowing all the facts as to the economics, on the face of it as a small business person, I reject this move also. A conversion would place yourself in answering to every whim and demand of some corp. monolithe and subject yourself to possible business upset of labor situations you have no control over.

IMO, based on my admitted limited knowledge, I would have kept things the same but give the MBE owners a pricing structure that grants them the incentive to push the UPS product line and this in turn builds volume for UPS. At the same time, any sales for FedEx, Airbourne, USPS would give UPS some cut of that action so we still make money. If someone has more facts I'm open minded enough to listen and learn.

 

[mbe_owner]

<font color="0077aa"> Alright, we will see how open minded you really are. I obviously know the MBE business, so I will give you some of my facts.
Lets start with the cost that MBE's charge and why.
-------Obviously we are small business owners with our life savings invested.
1. We all pay different rent amounts. It can go from $1000 month in small towns, to over $4000 month in the big cities.
Do you realize that every normal tax deduction on your check is matched by your employer? (except withholding tax)? That alone gets pretty expensive.
Do you know that MBE's pay 8 1/2% to MBE Corp?
Do you that when we get our bills from UPS they have ricidulous corrections? i.e., Address correction charges. Some drivers will address correct if I just put # 123 for apt number, instead of Apt. # 123. That is 10 bucks right off the top. A small package that I charged a customer $10.00 for just cost me $10.00 PLUS the shipping cost. I sent a package to a big city the other day. It was to 123 Commerce. I received an address correction for "Drive". How about those o/s 1 and o/s 2 charges. We have 6 measuring tapes that sit RIGHT beside our computer. We measure every box, no matter how small or big, every week, I my bill has a correction on it to up it to an o/s 1 or 2. Every week, I call and have to get it corrected again. TOO MUCH TIME spent auditing my UPS bills and on the phone with UPS, so I have to bring in extra help.
Do you know that most MBE owners tell our customers that if we pack it, we guarantee it? If UPS destroys their item that we packed, and UPS will not pay for it, we pay for it out of our own pockets? (us with morals)
Did you know that when you file a claim with UPS they AUTOMATICALLY deny it? "insufficient packing". You have to fight with them tooth and nail. I only have 1 or 2 claims per year. Not many considering the amount of packages I have go out. Considering that some come back with TIRE TRACKS on them, a bit frustrating and costly to say the least.
Did you know that MBE's don't get any discounts for shipping ground packages?
Did you know we only get about $3-4 off a next day air? Not much.
Most MBE owners are on MBE's proprietary manifesting system. Any guesses how much that is? I will give you a hint. Low 5 figures. Did you know that if you use that system that every time you ship a package you are also charged 10 cents--yep each transaction. I understand it is costing between 150-500 month for store owners.
Store insurance. Insane. 4 years ago it was $750.00. This year it was $2500.00. I have NEVER filed a claim.
Workman's comp. Another $3000 per year. Never any claims on that either.
How about those repairs in your store? We pay for them all. A/C goes out, our problem. Roof leaks and ruins your tiles, Roof is landlord, ceiling tiles are me. Carpet needs cleaning, up to me. Computer decided to go out, my problem. I have to call the tech with his hourly rate.
Now, how often do you see these owners go on vacation? Not often I bet. Health Insurance? Few of us can afford that luxury. Hope the family doesn't get sick. How about a day off? Few and far between. UPS/FedEx/USPS rate update? Spend all Sunday downloading.

All of those ridiculous drop offs that you want to leave at my store. How much time should I waste for a box that UPS gives my under a buck for? UPS wants to take MY premium space because you can't/don't want to deliver? No thank you. Do your job, I will do mine. YOUR job is delivery. Not drop off at the local MBE. If UPS wants a central location because people are not home to receive the package, THEN RENT A PREMIUM SPACE.</font>

Now, those are some of the expenses. I will go into the various carriers next

 

[dannyboy]

MBE

You are preaching to the wrong crew. I would rather you keep your independence. WE get a bad enough rap from those customer counters on my route allready. THey charge between 7 and 20 dollars more than we do and they tell the customer that those are our rates. All I ask is that you and those in the MBE business is to be honest with your customers about what you charge. If a customer is willing to pay you 25 dollars to ship a NDA letter, good for you. But dont feed them a line about that is what UPS charges you.

AS far as all the time you have to spend on your bill, so does every body that ships with UPS or FDX. All those revenue enhancers do quickly add up. AS for claims, sorry, that is the way the business has become. I too have had problems with that as a UPS customer.

d

 

[mbe_owner]

Now about the Multi-Carrier Platform.

Some people detest what THEY call the "old RPS". Doesn't matter that they are now called FedEx Ground, some customers hate them. On the other hand, some customers hate UPS. Even this many years later, they hate UPS, because they went on strike. Why should I have to turn away a customer? When you think of a UPS store, you don't exactly think copying, faxing and everything else that I have invested into this business. All you think of is shipping. So now you want me to change my name, what am I suppose to do with all of these leases that I have to pay for? What about all of those customers that I have built up for those large copy jobs? I didn't sign any agreement to be called UPS. Many of us would never have bought these businesses if that was the case. On the other hand, maybe they will be able to sell many more stores with the UPS name. Just don't tell me (and others) that I have to. That isn't what I poured 6 figures into. We deal with several companies that have very specific requriements. Most of the Pharmaceutical reps come in with their laptops and their notes. "Take to your local MBE, have them package it, and send it FedEx".
On the other hand, I also get returns that say "Take to your local MBE, and send UPS only". Some say, "trackable method other than Airborne". Why should I lose out to those sales that want someone OTHER than UPS?? I have spend YEARS, cultivating it. It is the job of the UPS AE's to change the perception, NOT ME. My job is to offer different choices, and package whatever it is to get there as safely as possible. NOT to sell UPS. Once again, that is the UPS AE.
I will give you that I am certainly NOT happy with UPS's air service. I have to give so many refunds for failures when I send it that way. I give my customers refunds immediately, then get to fight with UPS over whatever silly reason they say it didn't get there.
On the other hand, with FedEx, I have never, ever had to fight with them.
Both companies could learn from each other. They will not because of the obvious competition.
What if someone just wants something mailed cheap? Postal service. Who cares. We explain no tracking, no "up to $100 in insurance" and they say that is ok. Why should they have to pay 5-6 dollars for something when it is 2 bucks for regular old mail? Why should I lose that tiny bit of money?
Those are my thoughts, I realize you will not agree with a lot, but, it is a very different perspective on this side.

 

[mbe_owner]

WKMAC asked for that perspective. Otherwise I would never have written all that.
MY STORE, always responds with YES, we have an upcharge, and I don't charge more than 20.00 for any overnight letter. Most are 15-17.

 

[listenloud]

The article that started this thread was about UPS changing it's logo. It had a small mention of MBE being rebranded. There is something else brewing. Read the article. Look at the new drop boxes. Consider that day 1 employees can now enroll in the discount stock purchase plan and the 401k (which includes a 3% match for employees who are non-union in UPS stock). UPS is losing ground market share to FED EX ground at a fast pace. Where's the major acquisition from the IPO funds? What is UPS going to do with the $1.2 billion tax settlement? Have you seen the logo on the new P47's ? There is none!

Something else is brewing!

 

[christina]

I was reading some of these messages and I am concerned that everyone is forgeting about the people that keep UPS, FedEx, Airborn, DHL, etc in business and that is the customer. Our customers like to be able to go to "MBE" and ship what their clients ask them to ship. Most of the packages that MBE processes are billed to the recipients acct number. That means that they can go to ONE place, ship everything they need to ship, and make their customers happy. In turn, they are satisfied to be able to go to one place to do it ALL and MBE makes a little extra cash for making that accessible to them. UPS, FedEx, Airborn, USPS, DHL all get business that they may or may not have had due to everyones pick up surcharge. Imagine if you had a business and you have three very good customers asking their packages be sent three different ways. Would you want to pay $10 per package to ship some UPS, $4 per package to ship FedEx, and then have to run the rest over to the post office for the remaining ones??? Don't think so.

 

[tieguy]

I don't know all the details but I thought that MBE owners had a choice on changing the name?

 

[wkmac]

mbe owner,
Pull in the claws bud. Look again at what I said.

"I'm starting to side with these MBE owners who don't want to convert...... A conversion would place yourself in answering to every whim and demand of some corp. monolithe and subject yourself to possible business upset of labor situations you have no control over. I would have kept things the same but give the MBE owners a pricing structure that grants them the incentive to push the UPS product line..."

Yes I did admit to not knowning all the economic facts but admitted so to be fair to both sides. I've still not seen much as to what specifics UPS is offering so my opinion is based purely on the limited knowledge of the situation as I know it.

Hey I'm a Teamster and I think it's unfair to place you guys in a situation where an entity you have no say so in can totally devistate your business and livelyhood. I know about employer matching of Social "IN"Security, Worker's Comp, Medicare, etc. and that insurance you have to pay is really for pest control otherwise known as "keeping the lawyers at bay." LOL! I also understand the economics concerning rents and the payment of structure upkeep and you left out utilities, license fees, membership in local business associations. Some locals have to pay for security at Tough Tony's and Assoc. We could go on and on.

I think UPS should leave the MBE's independent but go in and look at the whole UPS/MBE relationship and then build a business plan that is a win/win for both parties. Streamline many of the issues like billing, etc. and format a pricing structure that places $$$$$ in the MBE owners pocket while doing the same for UPS and providing the customer with a true dollar cost effective reason to ship UPS rather than FedEx or whoever. Make it a true competive advantage for the MBE owner to sell UPS rather than a corp directive of do this or else.

I just think Corp's desire to micro manage everything is showing itself with MBE and in the end "could" bite them in the butt. Also, as tieguy pointed out, as more info comes out I to think this conversion appears to be the option of the franchisee but is it one of those situations where you either choose to convert or else? That is what I don't know.

 

[brownmonster]

Looks like the only reason UPS bought MBE is to reduce drop off points for the competition.

 

[tieguy]

Lets look at the issue and try to apply some common sense. MBE owners are independent contractors. I don't see how we can make them change thier name if they don't want to do so. I would think we would have to offer them some favorable incentives in order to get them to make the switch. If they agree to do so I don't see how we could make them do anymore for us then they were obligated to do under the franchise type agreement they previously had. From the emails and press releases I've previously read it is my understanding that they could still offer the other services they currently offer. Fedex has come out and said they would not agree to such an arrangement. I've previously read some comments from MBE owners who were part of the original test and they had said they were very happy with the terms of the deal.

 

[feederdryver]

"I was reading some of these messages and I am concerned that everyone is forgeting about the people that keep UPS, FedEx, Airborn, DHL, etc in business and that is the customer."
-Christina

Can someone please tell me what keeps the USPS in buisness??? haha

Christina-
As an American who works at UPS, I would rather ship through "FedEx" anyday than give any buisness to DHL (owned by the German Post Office monopoly) Be mindful who you ship through.

 

[wkmac]

Cheryl posted a new article on the Homepage concerning the MBE to UPS Store situation. What struck me reading this article is how much volume does FedEx (air and ground) generate through the MBE's at this time. By shutting down this avenue, is UPS gaining an added benefit of pulling away some of this volume from FedEx? I have no idea what the volume levels are but what impact will this bring to UPS and to FedEx? FedEx's chessboard move last summer was the promotion of fear around a possible strike at UPS so is this UPS's response back? Just thinking out loud.

 

[upsdawg]

I know that UPS bought MBE at bargain basement prices---right before U.S. Office Products was to file Chapter 11!! What would have happened to all of the MBE locations if that would have happened?
MBE owners do have a choice to switch over to the UPS Store , or keep the MBE name----or to sell their franchise---by the way, isn't it interesting---do you think that the value of the MBE Stores has increased since UPS took over??

I am sure that there are some MBE owners that have some resentment from some of the previous decisions that MBE Corp had made-----wideband--dishes on roofs that don't work----paying 5 figures for a Manifesting system????

UPS is financially strong and I do believe that there are bigger and better things to come with the UPS Store------how about tying them all together with some technology----EBAY--using the UPS Stores for return centers for --phones--computer parts.........

It sounds like if the MBE person is not happy, either keep the MBE name or sell the franchise!!

 

[dannyboy]

I pick up at three customer counter stops, one being an MBE. One uses UPS only, the other two use both UPS and FDX. AT one time I felt like I could not recomend one over the other, but the independent counter recomends using FDX, who cut them a better deal on price and installed them a computer system, so now I only recomend the two. Out of the three, we get maybe 5-9 NDA a day and FDX gets close to 20. We both have drop boxes really close to each other. But the real winner is the post office. The branch on my area does 100-150 letters per week, even though they are not guaranteed(the postal clerk is very friendly to us. I think the MBE will put the independent out of business within the next year or so.

d