UPS today announced a plan that will allow 3,300 Mail Boxes Etc. (MBE) franchisees based in the 48 contiguous United States to convert their retail centers to The UPS Store. The program also enables store owners to considerably lower the prices they offer consumers for UPS air express, ground and international shipping services.
UPS acquired MBE in 2001. Since that time, the two companies have been working together and with MBE franchisee representatives to identify opportunities to improve the MBE business model, which focuses on the shipping and business needs of consumers and small businesses. The answer came following a year-long pricing test in San Antonio and Phoenix MBE centers, as well as an additional four-month branding test in four other U.S. markets. The branding test gauged consumer response to lower pricing and various store names, including The UPS Store.
While the new pricing program showed positive results in all test markets, it was The UPS Store name, which was tested in St. Louis and Seattle, that fueled the strongest customer response. In these areas, December year-over-year comparisons showed that franchisees who converted to The UPS Store increased their overall UPS shipping volume by 70 percent, in addition to increasing customer traffic and other key performance metrics.
“Research shows us that the UPS shield is as powerful on the storefront as it is on our package cars,” said Rocky Romanella, vice president of UPS Retail Services. “Now MBE franchisees have the opportunity to harness that power by combining The UPS Store name and lower UPS prices with the great service and convenience they’ve always offered their customers.”
“We have been working diligently to ensure a winning strategy for our franchisees, UPS, and, most of all, our customers,” said MBE President Stuart Mathis. “This offering of nationwide convenient locations, world-class service, and lower UPS prices provides a combination we believe will transform the way customers view the retail shipping industry.”
There are no plans to change the trade name of MBE’s international locations. Currently, MBE has more than 1,000 units outside the U.S.
UPS is the world's largest express carrier and largest package delivery company, serving more than 200 countries and territories around the world. UPS Retail Services provides a comprehensive selection of convenient access to UPS shipping through a global footprint of more than 70,000 full service retail and drop-box locations. Headquartered in Atlanta, Ga., UPS is located on the Web at UPS.com.
Mail Boxes Etc., a UPS Company, is the world’s largest franchisor of retail shipping, postal and business services. There are more than 4,000 independently owned and operated MBE locations in more than 40 countries and territories.
