IDEA: Mailbox/Pack & Ship Store

[Godders]

I have been thinking about launching a physical business for some time and would value other members thoughts or experience.

The criteria I have for this business is:

• Low start-up costs
• Minimal overheads
• A simple business – one where the model is already proven. What can bring to be better than what is already out there?
• Scalable though employing operators of each store (an operator would receive a sizable bonus for meeting target e.g percentage of mailboxes rented) this would be a step up for someone who was accustomed to working for minimum wage in a normal retail job.

To this end, I’ve circled in on a mailbox/ pack and ship store. There seems to be plenty in the US but not quite so many here in the UK. The market seems dominated by a single brand here that operates on a franchise model.

The reason these stores pique my interest is the boom of side hustles and selling online via P2P marketplaces that require pack and ship services along with in the case of businesses, the anonymity a mailbox provides.

Secondly, especially in city, the number of people who order tonnes online and have their deliveries left outside by their front door ripe for damage in the rain or theft. The store would provide a safe place for parcel pick up as part of the mailbox subscription.

So far, I’ve just got the below on paper and haven’t done any deep dive into the financials or marketing.

Mission
The go-to destination for busy people and small businesses, catering to all their packing and shipping needs in the local vicinity.

Services We Provide/How we make money.

• Mailboxes – recurring monthly income (circa 500 – 1000 boxes per store) target 60% of store revenue - predictable recurring income.
• Personal – pick up your mail from your own numbered mailbox with a key. We also accept oversized parcel deliveries and hold these for 7 days for collection. (Business Challenge: Some couriers already offer shipping to a local convenience store for pickup that costs the consumer nothing extra)
• Business – Use your mailbox as a registered business address, receive business mail (include letter scanning as an added service)
• Drop and pack – sold something on eBay can’t be bothered/don’t have packing supplies? Come into store and have your items packed labelled and picked up by courier. We could also offer an ‘express drop and go’ service where the customer drops off the item and we handle the rest – saving time/hassle.
• FEDEX/UPS/DHL – shipping point, become an authorised retailer, make margin on each package sent.
• Courier collection point – Be a collection point for various couriers make money on each parcel collected (circa 50p - £1 per parcel) (note: does this invalidate mailbox side of the business?)
• Print/scan/shred – self-explanatory, unsure of the business case in the age of paperless, also requires significant capex.
• Passport Photo service– have a small photo booth set up, have your passport photo taken in store.
• Product photography – catered towards local e-commerce stores, drop your items off in store and have them professionally photographed. Could subcontract to local photographer.
• B2B shipping. – win accounts with local businesses and auction houses to be their approved shipping provider. Where could I go above and beyond to win business?
• Company incorporation – offer company incorporation, charge margin for each business setup or bundle for free when you subscribe to a mailbox for 12 months and pay up front. This service could be particularly attractive to overseas directors.
• Mail forwarding – forward physical mail, charge a margin.

Target Market

Busy professional/local resident – personal mailbox (to protect address and/or take parcels on their behalf when not at home), on demand printing, passport photos, send parcels via courier.

Local small business/entrepreneur - business mailbox (to protect address and/or take parcels on their behalf when not at home), on demand printing/shredding, send parcels via courier, business services.

Students – Send parcels, printing, shredding.

Overheads

Retail store rent – should this be based in a central business area or a residential one?

Utilities – power, water, internet

Staff – 1x manager (pay a basic salary + targets to give sense of ownership) + 1 or 2 part time members of staff per store.

Maintenance of equipment

Marketing

Paid social ads in local geographic area.

Sponsor local business communities.

Host monthly business socials – provide basic drinks snacks. Build profile in community


This is just a starting point, there’s are some challenges and aspects of this business I’m not sure about, more research required!

 

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[MJ DeMarco]

I hate this business as it lacks scale, unless you plan on competing in franchises. To me, it just seems like a bad job.

That said, my perspective is US-based... every time I find myself in one of these stores, I ask myself, "How the Fck does this place make money?"

 

[socaldude]

I ask myself, "How the Fck does this place make money?"

My thoughts exactly.

I was at a Postal Annex once and chatted with the owners a bit. These 2 woman spent $200k for a franchise.

I reserved any negative comments/criticisms but they seemed excited. Excitement that probably won’t last as they bought themselves a job.

It seems like a highly competitive and commoditized industry.

This might work in another country. But in the US? Tough selling Beanie Babies, copies and over-priced Tchotchke crap LOL.

 

[SEBASTlAN]

• Low start-up costs
• Minimal overheads
• A simple business – one where the model is already proven. What can bring to be better than what is already out there?
• Scalable though employing operators of each store (an operator would receive a sizable bonus for meeting target e.g percentage of mailboxes rented) this would be a step up for someone who was accustomed to working for minimum wage in a normal retail job.

Many business models match this criteria. I doubt mailbox store is your best option tbh. And how exactly would your store be "better" than the other stores out there?

 

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[biophase]

I hate this business as it lacks scale, unless you plan on competing in franchises. To me, it just seems like a bad job.

That said, my perspective is US-based... every time I find myself in one of these stores, I ask myself, "How the Fck does this place make money?"

When I first started out in ecommerce an worked out of my home, I dropped all my packages off at a mailbox plus place. I got to know the owner well enough. First I would drop off a few boxes a week, then in was 2-3 boxes a day and pretty soon it was 20 boxes a day. I knew that he made $1 a box paid by the Fedex, UPS. He mainly made money on the monthly PO boxes.

One day after running my business for 2-3 years, I told him that I got my own warehouse so I wouldn't be seeing him anymore. A year later I pulled up in my Ferrari to drop off a few random boxes and I could see in his face a look of not quite jealousy, but one of I've been running this business for 10 years and this kid gets a Ferrari after 3 years? That's the power of scale.

He did open a second location about 20 miles away. A few years later I stopped by and he told me the landlord wanted a 5 year lease extension and he didn't want to commit to it. He said it wasn't worth it so he closed up shop. His location is now a vape store. If I had to guess I would say that he never pulled in over $50k a year.

 

[WJK]

I have been thinking about launching a physical business for some time and would value other members thoughts or experience.

The criteria I have for this business is:

• Low start-up costs
• Minimal overheads
• A simple business – one where the model is already proven. What can bring to be better than what is already out there?
• Scalable though employing operators of each store (an operator would receive a sizable bonus for meeting target e.g percentage of mailboxes rented) this would be a step up for someone who was accustomed to working for minimum wage in a normal retail job.

To this end, I’ve circled in on a mailbox/ pack and ship store. There seems to be plenty in the US but not quite so many here in the UK. The market seems dominated by a single brand here that operates on a franchise model.

The reason these stores pique my interest is the boom of side hustles and selling online via P2P marketplaces that require pack and ship services along with in the case of businesses, the anonymity a mailbox provides.

Secondly, especially in city, the number of people who order tonnes online and have their deliveries left outside by their front door ripe for damage in the rain or theft. The store would provide a safe place for parcel pick up as part of the mailbox subscription.

So far, I’ve just got the below on paper and haven’t done any deep dive into the financials or marketing.

Mission
The go-to destination for busy people and small businesses, catering to all their packing and shipping needs in the local vicinity.

Services We Provide/How we make money.

• Mailboxes – recurring monthly income (circa 500 – 1000 boxes per store) target 60% of store revenue - predictable recurring income.
• Personal – pick up your mail from your own numbered mailbox with a key. We also accept oversized parcel deliveries and hold these for 7 days for collection. (Business Challenge: Some couriers already offer shipping to a local convenience store for pickup that costs the consumer nothing extra)
• Business – Use your mailbox as a registered business address, receive business mail (include letter scanning as an added service)
• Drop and pack – sold something on eBay can’t be bothered/don’t have packing supplies? Come into store and have your items packed labelled and picked up by courier. We could also offer an ‘express drop and go’ service where the customer drops off the item and we handle the rest – saving time/hassle.
• FEDEX/UPS/DHL – shipping point, become an authorised retailer, make margin on each package sent.
• Courier collection point – Be a collection point for various couriers make money on each parcel collected (circa 50p - £1 per parcel) (note: does this invalidate mailbox side of the business?)
• Print/scan/shred – self-explanatory, unsure of the business case in the age of paperless, also requires significant capex.
• Passport Photo service– have a small photo booth set up, have your passport photo taken in store.
• Product photography – catered towards local e-commerce stores, drop your items off in store and have them professionally photographed. Could subcontract to local photographer.
• B2B shipping. – win accounts with local businesses and auction houses to be their approved shipping provider. Where could I go above and beyond to win business?
• Company incorporation – offer company incorporation, charge margin for each business setup or bundle for free when you subscribe to a mailbox for 12 months and pay up front. This service could be particularly attractive to overseas directors.
• Mail forwarding – forward physical mail, charge a margin.

Target Market

Busy professional/local resident – personal mailbox (to protect address and/or take parcels on their behalf when not at home), on demand printing, passport photos, send parcels via courier.

Local small business/entrepreneur - business mailbox (to protect address and/or take parcels on their behalf when not at home), on demand printing/shredding, send parcels via courier, business services.

Students – Send parcels, printing, shredding.

Overheads

Retail store rent – should this be based in a central business area or a residential one?

Utilities – power, water, internet

Staff – 1x manager (pay a basic salary + targets to give sense of ownership) + 1 or 2 part time members of staff per store.

Maintenance of equipment

Marketing

Paid social ads in local geographic area.

Sponsor local business communities.

Host monthly business socials – provide basic drinks snacks. Build profile in community


This is just a starting point, there’s are some challenges and aspects of this business I’m not sure about, more research required!

Yes, it does sound like a job to me. But, you might marry it with another idea where you need a physical space. What other business(es) can you also launch?

Edit: I just visualized a drive-up service window on the side of your building...

 

[Godders]

Wow, thanks for all the replies.

It's fair to say we've reached a consensus! Thanks for the case study @biophase, it tells you all you need to know!

Since writing the post I did some rough assumptions on the kind of baseline income you could see.

The attractive part of this business was the idea of recurring income with the mailboxes, however, looking at average monthly rental, you'd need a very occupancy level (I'd say 1000 boxes at 80% +) to hit a decent profit. I imagine you would end up in a scenario where the mailboxes pay your overheads and the other services you provide give you your profit.

I took time out to visit a local one in town, and this assumption was backed up by the fact that along with mailboxes it was filled with all sorts of junk and frankly looked a mess. The other red flag is that courier rates and margins are out of your control, a ticking time bomb if you're relying on these services for profit.

I agree @MJ DeMarco that scaleability is another challenge that with the above in mind, is the final nail in the coffin!

 

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[MJ DeMarco]

I agree @MJ DeMarco that scaleability is another challenge that with the above in mind, is the final nail in the coffin!

I also knew someone in this business when I was in my 20's. She hated the business and wanted to sell it -- she tried selling it to me on the cheap and even back when I was struggling, I didn't want to touch it.

This was long ago before Amazon and the eCom boom.

 

[Gordon]

I have been thinking about launching a physical business for some time and would value other members thoughts or experience.

The criteria I have for this business is:

• Low start-up costs
• Minimal overheads
• A simple business – one where the model is already proven. What can bring to be better than what is already out there?
• Scalable though employing operators of each store (an operator would receive a sizable bonus for meeting target e.g percentage of mailboxes rented) this would be a step up for someone who was accustomed to working for minimum wage in a normal retail job.

To this end, I’ve circled in on a mailbox/ pack and ship store. There seems to be plenty in the US but not quite so many here in the UK. The market seems dominated by a single brand here that operates on a franchise model.

The reason these stores pique my interest is the boom of side hustles and selling online via P2P marketplaces that require pack and ship services along with in the case of businesses, the anonymity a mailbox provides.

Secondly, especially in city, the number of people who order tonnes online and have their deliveries left outside by their front door ripe for damage in the rain or theft. The store would provide a safe place for parcel pick up as part of the mailbox subscription.

So far, I’ve just got the below on paper and haven’t done any deep dive into the financials or marketing.

Mission
The go-to destination for busy people and small businesses, catering to all their packing and shipping needs in the local vicinity.

Services We Provide/How we make money.

• Mailboxes – recurring monthly income (circa 500 – 1000 boxes per store) target 60% of store revenue - predictable recurring income.
• Personal – pick up your mail from your own numbered mailbox with a key. We also accept oversized parcel deliveries and hold these for 7 days for collection. (Business Challenge: Some couriers already offer shipping to a local convenience store for pickup that costs the consumer nothing extra)
• Business – Use your mailbox as a registered business address, receive business mail (include letter scanning as an added service)
• Drop and pack – sold something on eBay can’t be bothered/don’t have packing supplies? Come into store and have your items packed labelled and picked up by courier. We could also offer an ‘express drop and go’ service where the customer drops off the item and we handle the rest – saving time/hassle.
• FEDEX/UPS/DHL – shipping point, become an authorised retailer, make margin on each package sent.
• Courier collection point – Be a collection point for various couriers make money on each parcel collected (circa 50p - £1 per parcel) (note: does this invalidate mailbox side of the business?)
• Print/scan/shred – self-explanatory, unsure of the business case in the age of paperless, also requires significant capex.
• Passport Photo service– have a small photo booth set up, have your passport photo taken in store.
• Product photography – catered towards local e-commerce stores, drop your items off in store and have them professionally photographed. Could subcontract to local photographer.
• B2B shipping. – win accounts with local businesses and auction houses to be their approved shipping provider. Where could I go above and beyond to win business?
• Company incorporation – offer company incorporation, charge margin for each business setup or bundle for free when you subscribe to a mailbox for 12 months and pay up front. This service could be particularly attractive to overseas directors.
• Mail forwarding – forward physical mail, charge a margin.

Target Market

Busy professional/local resident – personal mailbox (to protect address and/or take parcels on their behalf when not at home), on demand printing, passport photos, send parcels via courier.

Local small business/entrepreneur - business mailbox (to protect address and/or take parcels on their behalf when not at home), on demand printing/shredding, send parcels via courier, business services.

Students – Send parcels, printing, shredding.

Overheads

Retail store rent – should this be based in a central business area or a residential one?

Utilities – power, water, internet

Staff – 1x manager (pay a basic salary + targets to give sense of ownership) + 1 or 2 part time members of staff per store.

Maintenance of equipment

Marketing

Paid social ads in local geographic area.

Sponsor local business communities.

Host monthly business socials – provide basic drinks snacks. Build profile in community


This is just a starting point, there’s are some challenges and aspects of this business I’m not sure about, more research required!

Good, you crossed that one off the list. Consider this one: An On Demand Training Center. Low start-up costs? Just you and your laptop, or someone you know, with expertise. Since you can deliver this service to people, you don't need a "place", but can easily find one, in Co-Op type offices or something. Minimal overhead. Mostly just advertising to start. And local press releases may work too.

Simple business and scalable? One to one to start. Consider Dale Carnegie or Fred Pryor. Dale with classes at the YMCA, and Fred with the one day seminar. There is your scale and growth. Note Michael Brinda of New Horizons training centers. And add in all the certifications, and testing, well you have a multi-billion dollar industry that is easy to get started in. Take this thread for example, or some of the other ones about fast starts.

Many suggest to offer a service, and TRAINING is a service. The fact you are here and participate shows you may have more Internet savvy than many people who would gladly pay you (or someone you know) to learn from you.

Dale Carnegie has a great model. CERTIFY your instructors, or develop PROPRIETARY processes or courseware.

If you really want some headaches of overhead, you can rent a space, and lease it out to other trainers...but it would be better to grow into that. Do a search of these places, Pryor absorbed CareerTrack, look at their ON Demand offers. Just a thumbnail idea, and we are working this too. So, if you have questions, be glad to answer as time allows.

Gordon

 

[WJK]

Good, you crossed that one off the list. Consider this one: An On Demand Training Center. Low start-up costs? Just you and your laptop, or someone you know, with expertise. Since you can deliver this service to people, you don't need a "place", but can easily find one, in Co-Op type offices or something. Minimal overhead. Mostly just advertising to start. And local press releases may work too.

Simple business and scalable? One to one to start. Consider Dale Carnegie or Fred Pryor. Dale with classes at the YMCA, and Fred with the one day seminar. There is your scale and growth. Note Michael Brinda of New Horizons training centers. And add in all the certifications, and testing, well you have a multi-billion dollar industry that is easy to get started in. Take this thread for example, or some of the other ones about fast starts.

Many suggest to offer a service, and TRAINING is a service. The fact you are here and participate shows you may have more Internet savvy than many people who would gladly pay you (or someone you know) to learn from you.

Dale Carnegie has a great model. CERTIFY your instructors, or develop PROPRIETARY processes or courseware.

If you really want some headaches of overhead, you can rent a space, and lease it out to other trainers...but it would be better to grow into that. Do a search of these places, Pryor absorbed CareerTrack, look at their ON Demand offers. Just a thumbnail idea, and we are working this too. So, if you have questions, be glad to answer as time allows.

Gordon

I've had to go to Anchorage, Alaska, to take State exams for licenses. It was a room with computer terminals and the test monitors were contractors of the State. Also, I have an EPA license where I had to take a hands-on class to renew it, from a company that is approved to give that class. Just another idea...

 

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[Gordon]

I've had to go to Anchorage, Alaska, to take State exams for licenses. It was a room with computer terminals and the test monitors were contractors of the State. Also, I have an EPA license where I had to take a hands-on class to renew it, from a company that is approved to give that class. Just another idea...

 

[Gordon]

To your idea, anyone licensed could, maybe, teach others on how to obtain THAT license. You might find a demand for EPA testing help, for those who may also need this license. So that is a consideration too, prep others for licensing.

 

[garrett.wiseman]

I work for one of those stores. It was owned by my friend. Last year the sales were $110,000.
Sales $110,000 (for 2023)
Pay to my coworker and I lets say $53,000 (This could have been little more not sure.
Rent for the place is $2600 a month $31,200 for the year

$25,800 before other bills im not sure of cost.
I think we have 750 boxes and maybe 500 are rented
There are other cost water , power, phone , internet, insurance, supples, postage, POS monthly charge, drinks and snacks the owner pays for.

We have to mark up the shipping rents so high like double. Most people will say its to much and go somewhere else. We don't even get that much sales in shipping. We use to sale other stuff like cards didnt many any money. It's a lot of labor you have to do. You need to learn lot about shipping and rules of the post office. There new rules about opening mailboxes and IDs. You better hope the owner before if buying used. Updated their customers files and paperwork. I spend over a year cleaning up customers files. I'm not even halfway thought it.

 

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[REV5028]

"How the Fck does this place make money?"

The postal office at my local university only accepts cash. Not saying any Breaking Bad type shizniz is going down, but I am in New Mexico.