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pwixson
Posts:7
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| 09/17/2008 1:25 PM |
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SPECIAL NOTICE: The following article is scheduled to appear in the Brandon & Co. column of the Retail Shippers News May 2008 issue.
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 |
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