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Dear Reader,
Last month we sent out a call to action to retail shippers across the country for the purpose of validating the need for, and interest in supporting a non-profit trade association comprised of representatives from the franchise systems, independents, buyer groups, and vendors. Its purpose would be to represent the common interests of our industry. (You can read my original Call to Action in the May issue of the Retail Shipping News or on the home page of our website, www.rscentral.org, in the News To Know section.)
As of this writing, we have received upwards of 200 responses from a combination of store owners, franchise systems, multi-store/chain operators, and vendors. The responses have come via email and phone calls, and 100% have been in passionate support of the idea.
Following are excerpts from just a few of the written responses:
“My group of (store group name withheld) stores met last Saturday. Your call to action was on my agenda and discussed at length. The support was unanimous. I personally feel that a non-profit advocacy group is badly needed, but didn't want to steer the group. I wasn't surprised when the conversation from the senior people came out in full support. Please count us in. The sooner this movement gets going the better.” “ bout time...count me in”
“As an independent store owner I feel that it is my duty to jump on this and support any efforts to help all of us. Please let me know what I can do.”
“Do it!”
“Yes this is needed very badly - let me know how I can help.”
“Count me in.... Let’s make it happen....sooner than later....”
“Yes, a most needed organization. Being in business as an independent less than a year, I can see the retail margins becoming smaller, more people opening their own shipping accounts, internet retailers sending return shipping labels at buyer's expense, only to name a few. Unfortunately, I am not currently in a position to leave my store or be able to spend much time being directly involved with this new organization, but would be willing to support it financially. Thank you! Your efforts are greatly appreciated.”
“This is very much needed and very long overdue. Move ahead full speed and let’s get this thing moving! Let me know what I can do to help.”
“I think you’ve hit the nail squarely on the head. If we snooze, we will lose. It is time to step up to the plate to protect our investments.” “ I am excited about what you are proposing and hope that your “call to action” will not go unanswered. Please keep us posted, and let us know what we can do to further the effort.”
“You can count on our whole-hearted support.”
“…an advocate now more than ever. I've been spouting this mantra for quite some time and all I get is, "it can't be done"….. “I don't know what I can do as a store owner with limited resources and coverage, but if there is, let me know. I stand ready to assist where ever I can.”
As stated, these comments are only a sampling of those we’ve received, but they represent the general sentiments of the entire body of respondents.
I want to thank everyone who took the time to write. I read every response and it is clear there is a palpable sense of frustration due to a lack of accurate information and action from those who purport to speak for us.
As recently as this past week, RSA received calls from dozens of store owners who were alarmed over announcements from “industry experts” that mail and parcel center employees are required by the Department of Transportation to be trained in Hazardous Materials handling. Conveniently, this “regulatory” information was reported by those “experts” in conjunction with the launch of their new series of HAZMAT training courses.
Not only is this information misleading, it is patently incorrect.
It is a fact that if you ship HAZMAT as a matter of your normal course of business (e.g. a paint manufacturer), you are required by D.O.T. to complete recognized HAZMAT training.
But as UPS Authorized Shipping Outlets, DHL Authorized Shipping Centers, FedEx Authorized ShipCenters, or USPS Approved Shippers, we are contractually and specifically prohibited from shipping Hazardous Materials. (Refer to your ASO, DASC, FASC, and USPS Approved Shipper agreements for specific language.)
IF we were allowed to ship HAZMAT and elected to do so, then we would be required to complete Hazmat training. But since we are not allowed to, the point is moot.
Misleading statements involving regulatory authority and requirements (such as mandatory training) are not only confusing, but counter-productive in the sense that we should not invite unnecessary and restrictive regulatory actions—we already have as many encroachments on our businesses as we can handle.
This is not to be taken as a suggestion that continuing education for the sake of improving service performance and expertise is not a good business practice—that would be silly. But using scare tactics and disinformation as motivation to sell training programs is equally silly, and does little to help anyone.
I use this current and still-fresh example to illustrate and reiterate the immediate need for the formation of a 501 C-6 non-profit advocacy group. Only a truly independent body led by an elected Board of Directors, fully accountable to its constituency, can provide the representation necessary to protect the long-term viability of the retail shipping industry.
In that spirit and as a result of the level of support for the initial Call to Action, it’s time to move to the next logical step—that is to begin working on an industry consensus.
Beginning next week, I will start the process of contacting each of you who have already responded in support of the initiative. My purpose will be to schedule a series of group telephone conferences with those interested in participating on a Project Task Force. If you have not responded previously but would like to be involved, notify me via email at IWantAnAdvocate@rscentral.org.
The Task Force will be charged with performing due diligence on the structure and organization of the advocacy group and report a consensus plan for implementation. Their recommendations will be presented in August at an Organization Adoption Meeting to be held concurrent with the Retail Shippers EXPO in Las Vegas.
Like each of you, I’m a mail & parcel store owner with a vested interest in the future of our industry. And like the scores of owners who responded to my Call to Action, I believe our future is best served through an organization that is qualified to provide unbiased, informed representation; an advocate unhindered by prior debts, obligations and allegiances.
If you share this belief, join us. The time is now.
Brandon Gale
President - RS Associates |
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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 |