I just wanted to bring you up to speed on something 3M is changing all over the country to REDUCE its distribution base.

Starting June 1st, if you have not sold TEN automatic case sealing pieces of equipment the previous year, 3M is raising the price on all of the carton sealing tape the distributor buys from them by 10%. This is on top of a current 6% price increase in place which we would normally absorb until the next corrugate increase.

Schwarz is not an industrial packaging company selling to local companies up and down the street. As a national "boutique distribution" company, we rarely find ourselves in the position of selling conveyor type automatic carton selling equipment to our customers.

With basically this 16% price increase, Schwarz has decided to move our customer offering to INTERTAPE brand tape for the 2 mil and higher grades (3M 371, 373), and to WORLD tape (which produces our MAST brand tape) for the economy tapes (3M 369).

The tapes have the same performance as the 3M brand, without the two letters (3 M).

It looks like we will be making this transition over the July, August period of time as 3M product is depleted.

I will keep you informed of our progress, however we feel that this is the best service we can offer our customers. Thanks.

Rob Kaminski
Vice President & General Manager
Schwarz Supply Source / Supply Source One
#847-967-4081

Dear Reader,
Time flies when you’re having fun (or working your butt off—which can be fun so long as you’re working on something you enjoy).

The Retail Shipping Associates Team celebrated our one-year anniversary on April 15, 2008--it feels like it’s only been a couple of months because we have been both working hard and having fun (most of the time).

When you like what you do, have a clear picture of where you want to end up, and commit to the picture like someone possessed, then positive results are often a given or, in some cases, well beyond your plans and expectations.

In this case, we’re proud to report that RSA’s results have exceeded our expectations.

Our first-year “realistic” goal was to have 750 registered RS Associates, with a “stretch” goal of 1,000. As of this writing, 2014 retail store owners have registered with RSA and used our products/services/support in some fashion.

At our current rate of growth (34 new store registrations per week on average), in very short order RSA will represent the largest group of retail shipping centers in the country.

So far, so good, right?

Certainly, but as with all good strategies, the RSA team has taken a look back at our original business model to determine what we did well, what we could have done better, what’s missing, how should we re-set our plan, and what are the risks to our business model.

For the purpose of this article, I want to focus on the last item mentioned--what are the risks to our business model?

Speaking purely from the RSA point of view, the single biggest risk to our model is the long-term prospects for our Associates—that is, in order for RSA to succeed, it is imperative that retail shipping as an industry remains viable. We consider ourselves to be a stakeholder in your business and, as such, we are charged with delivering information, vendor relationships, products, services, and education that best positions you, the store owner to succeed.

In short, if retail shippers succeed, RSA will continue to grow.

As a store owner for 23 years (I still own 5), I have a slightly different, but related perspective. Like you, my stores need to be profitable, so anything that poses a risk to the industry at-large affects me directly.

So, is there one particular thing that we’re concerned about? No, and Yes.

The economy, fuel prices, competition/market dilution, package liability, security, predatory/monopolistic business practices, and national regulatory and legislative controls are some of the line items on a long list of existing and potential influences that are common to us all and represent a potential risk to retail shipping.

Any one of the foregoing may in and of itself not be of grave concern, but as you start to look at the list as a whole, it should give cause for concern because our industry is lacking something that practically every mature and pervasive industry has in place—a non-profit trade association that represents our collective and common concerns.

Whether you are part of a franchise system or an independent store owner, there is no existing organization that speaks on your behalf and acts as an advocate regarding issues that impact the entire retail shipping community.

There are organizations claiming to be advocates, but in reality it is not possible for them to represent us because they are for-profit enterprises, dependent upon revenue from carrier and vendor relationships, advertising, incentives, commissions, and behind-the- scenes payments that specifically disqualify them as an advocate. Because they are dependent on relationships with vendors to support a profit-based model, they cannot be in an objective position to represent store owners. As a for-profit enterprise, RSA also falls into this category.

Today our community consists of a number of franchise systems—The UPS Stores, PostNet, Annex Brands, Pak Mail, AIM Mail Centers, Postal Connections, Mail Boxes, Etc., Parcel Plus, Goin’ Postal, SOHO Hero, etc., turnkeys---The Mailbox Stores, P.A.S.S., Qwik Pack & Ship, Business Center Development, Ship-On-Site, etc., Independent stores, and a variety of hybrids (copy/print shops, college bookstores, self-storage, etc.).

All-in, there are approximately 12,000 stores classified as core retail shippers, and another 10-12,000 that fall into the hybrid store category that also offer retail packing and shipping as a part of their menu.

As a group, we are approximately 20,000 small business owners strong. As single store operators, there is little we can do to impact our future, but as a collective, we can influence, change, and improve the marketplace to the benefit of all.

What’s missing from our camp is a true non-profit trade association that has an agenda focused specifically and exclusively on advocacy and the long-term health and viability of our industry. This association cannot be encumbered by revenue related relationships and conflicts of interest. It must be able to objectively represent the interests of the industry at large.

The franchise systems certainly understand the need for a directed effort, but even the largest (The UPS Store) is limited in the scope of what it can do because of their structure. The second largest franchise system (PostNet) has 475 domestic locations, which is less than 4% of the industry, so they also have limited reach and influence.

An industry trade association with a consensus board of directors from the different franchises, independants, buyer groups, and relevant vendors would obviously represent the numbers necessary to have an impact at every level—regulatory, legislative, transportation, and business channels.

Has this ever been done before? Yes, it has.

Back in the 1990’s, the post office had plans to build 7500 pack and ship stores across the nation that would compete directly with our industry. This would have been accomplished by using postal revenues and government support. A non-profit coalition was formed that included the franchise systems and independent owners. Money was raised, a lobbyist was hired, testimony before congress was given. To make a long story short, the effort was a success, and the postal service no longer has designs on competing directly with us (instead they are now a partner through the Approve Shipper Program). Unfortunately, the coalition was wound down after the goal was accomplished.

The point is, we have done this before, and can do it again. In fact, if we don’t do it, we all proceed at our individual peril. As store owners, you realize daily what the existing (and growing) threats to your business are. What you need now is someone to speak out for you, and to be in a position to actually change things. And we need it today—not in six months, a year, or two years. As an industry, we cannot wait.

So, today I am calling you all to action. If you are part of a franchise system, reach out to your franchisor and tell them this is important to you—do likewise if you are a member of a turnkey or buying group. If you are a RS Associate, email us with your sentiments and opinions at IWantAnAdvocate@rscentral.org. If you are an unaffiliated independent, register with RSA today at www.rscentral.org.

I will be contacting the heads of the franchise systems, turnkeys, and buying groups to encourage their support and participation. RSA will do its part and help to organize and participate in the structure.

If we are successful in creating this entity for advocacy, I will be the first to join, actively seek to sit on the board and represent RSA Merchant Associate stores - and who knows - maybe even run for President!

Best Regards,

Brandon Gale
President - RS Associates

“This news is particularly exciting for us”, said Brandon Gale, President of RS Associates. “Our first-year stretch goal was to reach 1000 registered Associates---doubling that goal within a week of our one year anniversary more than proves our model”, said Gale. “Our entire team has worked tirelessly to make this happen, and we are all proud and excited to be in a position to play a continuing role in the success of our Associates and the Retail Shipping industry”.

On April 18, 2007, RS Associates launched their website, www.rscentral.org, enabling on-line registration and access to a variety of business tools for the retail shipping community at-large. RSA’s first Associate was Bruce Bernstein, owner of Parcels Plus in Pompano Beach, Florida.

RS Associates announced an August date and location for the retail shipping industry’s first national supplier trade show open to the entire MPC community without charge - the Retail Shippers EXPO. The event is scheduled for August 15th at the Flamingo Las Vegas located on the Strip.

The full-day vendor fair will begin at 11:00am on Friday and continue until 7:00pm that evening. Organizers predict a record attendance of 500 or more retail shipping center owners and operators for this first-ever event.

“Free access and a Las Vegas venue – that’s a combination that’s hard to beat,” declared RS Associates president Brandon Gale. “By opening the event to all mail and parcel centers in the country without any registration or attendance fees, we’ve created a marketplace that every supplier in the industry will want to participate in.”

Although the event is free to store owners, attendees must register in advance to guarantee their admittance. “We’re aggressively marketing the EXPO to more than 10,000 mail and parcel centers over the next several months,” Gale continued. “I highly recommend that anyone considering attending the event go online and register today. It’s a big exhibit hall, but the fire code will limit the number of people allowed entrance.”

Interested retail shipping center owners and operators should go to the Retail Shippers EXPO website, www.rs-EXPO.com, and register to attend. Registering for the event is FREE and guarantees admittance to the Expo.

RS Associates announced today a strategic marketing alliance with PaySpot, a subsidiary of Euronet Worldwide, Inc., the world’s largest prepaid card provider and processor. In this channel-exclusive relationship, RS Associates will offer a suite of PaySpot products including Prepaid Wireless, Prepaid Long Distance, Prepaid Debit Cards and Prepaid Gift Cards to retail shipping centers throughout the country.

“We’re very excited to have been selected by PaySpot to represent their products in our marketplace,” stated Mark Stinson, Business Development Director for RS Associates. “For the first time, mail and parcel center operators will have access to this dynamic new retail profit center without any entry cost, membership requirement or fees.”

Store owners who wish to register as a distributor of one or more of the PaySpot prepaid products will be able to do so as early as April 1, 2008. “We are in the process of building a program information and product training module on our website, www.rscentral.org.” Stinson said. “We want every store owner considering the offering to have a complete understanding of the products, their highest probable customers and most importantly – the true profit potential for their stores.” The web module will include a detailed explanation of each prepaid product, suggested marketing strategies, POS materials and a program participation application.

Unlike other prepaid programs in the MPC marketplace, participants in the PaySpot program will be supported directly by RS Associates. All issues involving enrollment, product distribution and problem resolution will be handled by the Associates Services division of RS Associates.

Retail shipping centers who wish to be notified when the program web module is available for viewing should respond using the link below, or by sending RS Associates an email at prepaid@rscentral.org.

The Retail Shipping Academy (RS Academy) and PC Synergy (PostalMate) are hosting a Regional Training Conference in Chicago, IL, March 7-9, 2008. This is your chance to take advantage of the RS Academy Professional Skills Education Training and PostalMate User Training. Don’t miss this opportunity to learn something new, sharpen your skills and network with other retail shipping center owners and operators. Eight Professional Skills Certification classes as well as PostalMate user training will be presented during the three-day event.

You won’t want to miss Saturday evening’s Town Hall Meeting hosted by PC Synergy VP of Marketing Julianna Shapiro, RS_Associates President Brandon Gale and NARSC President Greg Granby. This is your chance to participate in an open-mic forum created especially for MPC operators. There is NO FEE to attend the Town Hall Meeting and it is open to all store owners (participation in training classes not required).

The Retail Shipping Academy (RS Academy) announced the addition of their new Notary Basics class to the course list being offered at the Regional Training Conferences this year. The class will be offered on Friday evening at each venue from 6:00 pm – 9:00 pm.

Designed to provide the information necessary to develop the skills and confidence to perform virtually any notarial act, the Notary Basics class is appropriate for both existing and perspective Notary Publics.

Content is presented in three parts to lead the student logically from an understanding of the basic concepts of notarization through comprehension of the various notarial acts. Course information is state-specific when appropriate.

The 2008 Regional Training Conferences are produced in conjunction with PC Synergy, maker of the industry’s leading POS software, PostalMate. In each city, RS Academy trainings classes will be held on Friday (BootCamp Jr. and Notary Basics) and Sunday (Professional Skills Education Series classes). PostalMate User Training is presented on Saturday. Class descriptions are available for download on the RS Associates website, www.rscentral.org , in the ACADEMY section under CLASSROOM TRAINING.

In addition, a special Towne Hall assembly meeting is held on Saturday night. The open-mike forum is co-hosted by Brandon Gale, President of RS Associates, Rick Crawford, President of PC Synergy and Greg Granby, President of NARSC. The assembly is open to all retail shipping center owners and operators in the market area without cost or registration.

To register for Notary Basics, or any of the other seven classes being offered at the Regional Training Conferences in Seattle, Chicago and Princeton (NJ), click on the link below.

Retail Shipping Associates (RS Associates) and Titan Recycling International, Inc. announced today a strategic marketing alliance that includes an industry-wide expansion of Titan’s popular printer cartridge / cellular phone return program.

Titan, a national leader in the collection of empty ink jet and laser print cartridges for recycling, has offered a compensation program for cartridge returns designed especially for mail and parcel centers since 2002. Many store owners have embraced the program as a significant revenue stream, establishing collection programs with local businesses, schools and churches.

“Until now, participation in Titan’s program was restricted to pack and ship stores who were affiliated with either a dues-paying organization or one of several franchises,” explained Mark Stinson, RS Associates Director of Business Development. “Now, every mail center in the country can take advantage of this lucrative profit center without any cost or membership fees.”

Participating stores are provided with price sheets, in-store marketing signage and UPS ARS labels for returning the collected cartridges and cell phones. There is no cost for participation and program compensation is made direct to the store by Titan.

Because the value of some cartridges change based on supply and demand, Titan provides frequent updates to the compensation list located on their website. “It’s a good idea to check the list regularly,” stated Walt Rebar, president of Titan. “The market changes frequently, with some cartridges losing value and others gaining value. Of course, there are always those that have no value at all.”

The training meetings are produced in conjunction with PC Synergy, maker of the industry’s leading POS software, PostalMate. In each city, RS Academy trainings classes will be held on Friday (BootCamp Jr.) and Sunday (Professional Skills Education Series classes). PostalMate User Training is presented on Saturday.

A special Towne Hall assembly meeting is held on Saturday night. The open-mike forum is co-hosted by Brandon Gale, President of RS Associates and Rick Crawford, President of PC Synergy. The assembly is open to all retail shipping center owners and operators in the market area without cost or registration.