Consulting services to open a mail package packing and shipping store can be expensive. That is why we wrote the book in 2002 and many have taken advantage of it.

What is the best way to open a mail packing and parcel shipping store? Should you go independent, hire a developer, or go with 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 professional shop if you can do much of the physical outfit 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, trading 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. The pricing strategy depends on your target market and your profit centers.

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 “Power Center”. In general, your target market is the person or business that needs convenience and isn’t going to a major mall on the way home.

shipping accounts

Contact FedEx to become a FASC (FedEx Authorized Shipping Center). Your representative can tell you which conditions apply. UPS ASOs (UPS Authorized Sales Points) are “exempted”, which means you can get an ASO account if you buy an existing store that has ASO status. Contact Retail Shipping Associates at http://www.rscentral.org for an account with DHL, the world leader in international shipping. Also visit RSA for information on USPS programs.

Cash register/POS systems

The leading current POS (Point of Sale) (cash register) software programs for packing and shipping 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?

inventory of boxes

Of course, buy a general inventory of boxes that works great for most shipments. When shopping for your inventory of corrugated boxes, 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 normally be shipped based on certain carrier dimension rules, oversized or international size. Consider stronger corrugation (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 have had stores that did a great deal of snack and mail order business, while another did mostly large shipments. Other profit centers that generate big revenue now are custom packaging and big freight. Know how to price right and provide great customer service to stay in business now!