So I went to my local UPS store and as usual asked for a 10% UPSer's discount. The owner said he no longer can honor that discount because he has so little room for profit.
That's a discount arranged at the corporate level and required that all franchises abide by. He can either give you the discount or be reported.
There are a number of stores that feel that they don't answer to anybody and can do whatever they want.
Isn't that the basis for the class action lawsuit in California? MBE franchisee's being forced by UPS to convert from an existing profitable business model to a new less profitable business model?
There is litigation pending after lawyers got a hold of some internal memos (google UPS Store and Norman Black). In my opinion, the accusation that UPS took something profitable and killed it is garbage. The study at the basis of the suit did find that they would have trouble maintaining profitability.
I think this is more related to the trend away from these establishments, the changing competitive landscape and the role that pack and ship stores play overall. Keep in mind we are deterring conversion of UPS Store customers through SLIM leads and our sales-force.
Also the study was conducted some time ago, but you have to wonder what the economy is doing to the UPS Stores. I keep seeing signs about giving away 1 month free for every 3 months rentals, thats 25% off.