Consulting services to open a packing and mailing package store can be expensive. That is why we wrote the book in 2002 and that many have taken advantage of.
What is the best way to open a package mailing and shipping store? Should you go freelance, hire a developer, or go for a franchise? We veterans suggest you learn about costs, pricing, location, shipping accounts, equipment, POS shipping software, inventory, supplies, profit centers, store layout, and more. then make your decision.
Store opening expenses
Expect a minimum of $35,000 to open a pro shop if you can do much of the physical attire yourself. Most stores now open for at least $75,000. This includes POS (point of sale) equipment and computers, retail displays, and inventory. Of course, this all depends on your “hands-on” skills, business background, strategy, and where you are. Yes, there are many variables.
Prices for placing strategy
Consult your competition in all types of shipments and then decide your pricing strategy. Pricing strategy depends on your target market and profit centers.
To lease
“Rent, rent, rent!” It is important. Make sure you have dedicated parking spaces for your store as your customers bring you packages. Be careful when looking at what we call a “Center of Power”. In general, your target market is the person or business that needs convenience and doesn’t go to a major mall on their way home.
shipping accounts
Contact FedEx to become a FASC (FedEx Authorized Shipping Center). Your representative can tell you what conditions apply. UPS ASOs (UPS Authorized Retail Outlets) are “exempt,” meaning you may be able to get an ASO account if you purchase an existing store that has ASO status. Contact Retail Shipping Associates at http://www.rscentral.org to obtain a DHL account, the world leader in international shipping. Also visit RSA for information on USPS programs.
Cash register/POS systems
The current leading POS (Point of Sale) (cash register) software programs for pack-and-ship stores are PostalMate, ShipRite, and ReSource. Each has its great points and flaws. Call each one for a demo and ask questions. For example, can the POS help you if you are in Hawaii?
box inventory
Of course, buy a general inventory of boxes that works great for most shipments. When shopping for your corrugated box inventory, keep in mind that box manufacturers typically list the inside dimension of a box. What do the outside dimensions mean when shipping by a carrier both domestically and internationally? Buy boxes knowing what outside dimensions can typically be shipped based on certain carrier dimensional, oversized, or international sized rules. Consider stronger corrugated (double wall) for your larger boxes and flat sheets to reduce the chance of damage.
profit centers
Know what your community needs with services and products. We’ve had stores that did a big deal with snacks and mail-order, while another mostly did big shipping. Other profit centers generating big revenue now are custom packaging and big freight. Learn how to get the right price and provide great customer service to stay in business now!
