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Would the purchase of a UPS store turn a profit? |
My parents are looking into purchasing a UPS store. Does this sound like a wise investment. Does anyone have any reliable information matter on this subject matter? Personal experience etc... Hubby has worked for the company for over 40 years and we looked into purchasing a franchise for his retirement. Location matters a lot and we thought the business model overall suffered when they changed the name from Mail Boxes Etc to the UPS store because consumers felt their choices were limited. Obviously, franchise owners felt so too because I believe they sued over the issue. All that being said, shipping is big business just watch the transportation companies on the stock market. They are very tied to what is happening with oil as an operating cost but UPS does offer one of the best insurance policies in the business, it is one of the oldest shipping companies in the business and have made all of the mistakes getting to where they are. Read up on the company in the book Driving Force for more company history and information. If you purchase a franchise, they own you. Read the contract very carefully, then have your attorney interpret it for you. Most of the UPS stores, Post Office Etc, Mail Box Plus stores I have seen are usually run by the folks who bought them. This isn't actually a really good sign as it points to the need to save on labor. In addition, most of these stores area always looking to provide multiple services as no one service provides what is needed to pay the bills. I would ask for the Profit/Loss statements for the last six months prior to moving forward so you can ensure its not just a seasonal business and if it is you can at least plan accordingly. I am a small business owner myself. |
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