FedEx gets Kinky

[USNFDX]

http://www.msnbc.msn.com/id/3838544/

 

[AlbieF15]

I are not no businessman.. ....but that does seem like a good parry to the UPS/Mailbox etc. thrust. Does this mean Kinko's will also be a shipping drop off/pick up point?

 

[FL000]

I are not no businessman.. ....but that does seem like a good parry to the UPS/Mailbox etc. thrust. Does this mean Kinko's will also be a shipping drop off/pick up point?

That was my first reaction also. The UPS stores are a huge ripoff price-wise. I was shipping a fax machine once and they wanted 16 bucks just to package the thing. Shipping and insurance were going to be another 45 dollars. Since I had sold it for $50, with an extra $20 shipping allowance, I went somewhere else and packed/shipped/insured it for $21. Never again, UPS Store!

I love having a FedEx shipping office near my house. It's cheap and easy. If they go to the "store" concept, I'll kick and scream!

 

[AJWick]

I think FedEx is just copying the competition.

aj

 

[Goose17]

I dont think you have your FAX straight.

Goose17]

 

[General Lee]

Hey, we also have a "Song Store" in SoHo. Everybody wants to own stores now. Gravy!

Bye Bye--General Lee

 

[LJDRVR]

I hope FedEx's first official act is to dismiss all Kinko's service personnel. No Hyperbole here, they are simply, in my estimation, the worst examples of customer service in the universe.

Every single Kinko's employee I've come into contact with recently is indifferent, has no pride in their job and seem incapable of thinking on their feet to keep their customers happy. I witnessed this lady in front of me in line who simply wanted the "trog" helping her to accomplish a task. (I forget the specific details) Trog-boy explained to her that Kinkos' had a minimum quantity policy for what she need done. The young lady understood this, but only wanted one and was willing to pay whatever the minimum quantity charge was. Not only was this cretin unwilling to depart from the "rules" but get this; he start arguing with her! She walks out disgusted. I politely told the guy that maybe he oughta learn to "think ouside the box" a little, as she was never gonna come back, not to mention bad-mouth Kinko's to all her friends. This guy wasn't buying. She was wrong, he was right. Period.

Maybe witnessing such an egregious bunch of BS has colored my perspective, but I've seen other instances too. Anybody else here have similiar experiences?

Now returning this thread to aviation-related subject matter.

 

[cubegirl7]

it's a bit ridicules when you have to wait over two hours to get a few color copies. (fedex listen up--let's work on the costumer service part) i'm assuming that many people use the fedex drop off inside kinkos and it's a great was for fedex to expand without having to build new locations. Fedex paid $2.4 billion for the Privately-held Kinko's, not bad considering there are 1200 kinkos locations in 10 diff countries.

 

[General Lee]

The people at the "UPS store" told me they get no benefits and an hourly salary of $7-8 bucks. Doesn't sound like the best job---but hey--it is a job!!!!

Bye Bye--General Lee

 

[General Lee]

This is what I DO NOT like about analysts and their predictions etc. We all know that FEDEX is a great company that profits all of the time. They do very well and shouldn't have a problem buying Kinkos or anyone else. Then we get articles like this, and everyone has to wonder.......



CREDIT WEEK FOCUS

S&P Puts FedEx on CreditWatch Negative
The rating agency notes that the shipping giant's deal to acquire Kinko's exposes it to acquisition-related risks

On Dec. 30, 2003, Standard & Poor's Ratings Services placed its ratings on Memphis, Tenn.-based FedEx Corp. (FDX ) and subsidiaries, including the 'BBB' corporate credit rating, 'BBB' senior unsecured debt rating, 'A-2' commercial paper rating and various aircraft backed debt ratings, on CreditWatch with negative implications following the company's announcement that it is acquiring privately held Kinko's Inc. for $2.4 billion in cash (about 1.2x revenues). The transaction is expected to close in the first calendar quarter of 2004. FedEx has about $11 billion of lease-adjusted debt.

Standard & Poor's will assess the potential benefits and risks of the proposed transaction as well as the likely timeframe for paying down the acquisition-related debt. Although the acquisition of Kinko's will diversify FedEx's revenue base and could lead to increased business for FedEx's various services, it also exposes the company to acquisition-related risks, including the challenges of learning a new business and integrating operations. In addition, it will result in an increase in financial risk.

FedEx Corp. is a holding company that operates three major operating companies: FedEx Express, FedEx Ground, and FedEx Freight. Main operating unit FedEx Express--the founder and still leading participant in the air express segment of the domestic package express industry--dominates the company's business and financial profile.

FedEx has been expanding its product offerings in recent years, enabling it to offer its customers a full range of transportation and logistics services. Cross-selling of the portfolio of services, particularly to small and medium-sized businesses, is a key component of FedEx's growth strategy. Its acquisition of Kinko's, which provides copying and other business services and generates about $2 billion in annual revenues, will enable FedEx to offer its shipping services in all of Kinko's 1,200 retail locations.

FedEx has had a relationship with Kinko's for fifteen years and currently operates full-service, staffed counters in 134 Kinko's locations. The Kinko's management team is expected to remain in place. Most of Kinko's locations are in the U.S. FedEx plans to use its global expertise to help Kinko's expand its international presence.

Standard & Poor's will meet with management to discuss the strategic and financial implications of the proposed deal. If it appears that FedEx's business or financial risk will be significantly heightened by the proposed deal, ratings could be lowered modestly, but would very likely remain investment grade.

Liquidity: Prior to the acquisition, FedEx Corp. had ample liquidity. At Nov. 30, 2003, cash and cash equivalents totaled $1 billion. The company maintains $1 billion in revolving bank credit facilities. The revolving credit agreements comprise two parts. The first part provides for $750 million through September 2006, and the second part provides for $250 million through September 2004.

Commercial paper borrowings are backed by unused commitments under the revolving credit agreements and reduce the amount available under the agreements. At Nov. 30, 2003, no commercial paper was outstanding and the entire amount under the credit facilities was available for borrowing. FedEx has stated that it has secured a commitment from JP Morgan to provide financing for the deal.




Bye Bye--General Lee

 

[Full of LUV]

Kinko's Horror

I went into my local Kinkos to get on B&W photocopy of a color photo. (it is sort of expensive, but I only needed one). After waiting in line for 15 minutes while multiple other employees seemed to be doing somewhat mundane tasks instead of assisting the waiting customer, the grumpy, multiple pierced kinkos worker took 5 mins to write down my "order", paperclipped it to my photo and said check back in TWO DAYS. I was in complete disbelief. In the time they took my order, she could have made the print and handed it back to me collected the money and moved on. I protested but there was no budging the complete lack of interest that they displayed.

It gets better.

I return two days later only to find out that they hadn't gotten to it yet! They were no further than the day I left disgusted. I spoke to the "shift manager" and she assured me that it would be done that night. I still could not believe it. I had another copy of the color print to take elsewhere so I changed my Kinkos order to 20 prints from 1 and then never showed up to pick them up or pay. It serves them right. (In the meantime, I took to Office Depot and was done in 5 mins.)
I hope FEDEX can fix that, because the World Service Centers are usually a blessing when compared to the Post Office.

 

[TonyC]

He is good at diversifying companies right into bankruptcy.

Fred Smith has been quite successful to date in buying companies and combining them under a single brand to make the whole brand better. Flying Tigers, RPS, American Freightways, and Roberts Package Express are a few of the companies that come immediately to my mind of the list of companies that were purchased by FedEx and now wear the FedEx name.

It's good to know that in these difficult economic times that FedEx is healthy enough to pay 2.4 BILLION dollars CASH for this transaction. That's right... Billion with a capital B, and CASH with a big green capital C-A-S-H. What interests me is how he'll turn this into a poverty story when it comes time to negotiate the contract in June.

By the way, I've personally not had anything but excellent experiences with Kinko's employees. I've taken them dozens of types of jobs at all times of the day and night, and encountered nothing but helpful, cheerful people eager to please. I suppose it's just like any other chain, though. Some McDonald's employees are sharp and courteous, and then are the few rotten apples.

 

[TonyC]

Re: Pass on the Cash!

"... - but hey, how about a discount at all Kinko's?"

We already get a discount