Fred Smith on The tube

[Capt. X]

I hear its the other way around. UPS can buy Fedex with cash!!! What a company.

 

[AZ Typed]

I'd be very cautious of FedEx right now - both from an employee and investment standpoint. They have totally lost focus on their mission: get the package there overnight (yes I understand other shipping options than overnight exist). Here are the problems as I see them (not an employee, not trying to get hired by FedEx, and not in any particular order). 1) Buying Kinkos was dumb. FedEx is in the cargo business not the $.15/copy or printing business. Every Kinkos I go into now is a disaster. Each outlet is a mess, understaffed, machines out of paper/not working, and worst of all - the FedEx shipping location is typically not staffed, missing shipping supplies, and yes...it's a mess, too. If you ask the Kinkos employees for help, they typically are not sure of the necessary shipping procedures (some stores are better than others). Additionally, the emploees don't have any ownership in their particular Kinkos store. Yes, many of the Kinkos employees boast 3 to 5+ years of service...but keep in mind they were part of Kinkos before FedEx came into the picture. 2). Not competing DIRECTLY with UPS with shipping-only outlets. UPS has UPS stores. At a UPS store, you primarily SHIP stuff (not make copies, rent computers, and design banners and business cards). It seems the UPS stores are owned by regular folks who bought into a UPS franchise - thus they have much invested and are therefore obligated to themselves to provide a good service. If their store doesn't make money, they don't eat. They always have all the shipping supplies needed, they can package stuff for you, and they are very helpful. The UPS stores focus on what UPS does - ship crap. I firmly believe FedEx made a big mistake investing in the Kinkos operation - it's too distracting from what FedEx does. DHL is making a huge jab at becoming a household name. UPS has it's act together for building a loyal retail middle-america customer base. FedEx needs to review it's purpose and verify it's course. Without such review and potential change, they venture further down the wrong airway and end up single engine over unfamiliar terrain. I don't see any problems like UALs...but they had a great thing going and I think they may be messing it up over there - "they" being the management team. Of course...this is all just my observation only.

AZT

 

[Deuce130]

I'd be very cautious of FedEx right now - both from an employee and investment standpoint. They have totally lost focus on their mission: get the package there overnight (yes I understand other shipping options than overnight exist). Here are the problems as I see them (not an employee, not trying to get hired by FedEx, and not in any particular order). 1) Buying Kinkos was dumb. FedEx is in the cargo business not the $.15/copy or printing business. Every Kinkos I go into now is a disaster. Each outlet is a mess, understaffed, machines out of paper/not working, and worst of all - the FedEx shipping location is typically not staffed, missing shipping supplies, and yes...it's a mess, too. If you ask the Kinkos employees for help, they typically are not sure of the necessary shipping procedures (some stores are better than others). Additionally, the emploees don't have any ownership in their particular Kinkos store. Yes, many of the Kinkos employees boast 3 to 5+ years of service...but keep in mind they were part of Kinkos before FedEx came into the picture. 2). Not competing DIRECTLY with UPS with shipping-only outlets. UPS has UPS stores. At a UPS store, you primarily SHIP stuff (not make copies, rent computers, and design banners and business cards). It seems the UPS stores are owned by regular folks who bought into a UPS franchise - thus they have much invested and are therefore obligated to themselves to provide a good service. If their store doesn't make money, they don't eat. They always have all the shipping supplies needed, they can package stuff for you, and they are very helpful. The UPS stores focus on what UPS does - ship crap. I firmly believe FedEx made a big mistake investing in the Kinkos operation - it's too distracting from what FedEx does. DHL is making a huge jab at becoming a household name. UPS has it's act together for building a loyal retail middle-america customer base. FedEx needs to review it's purpose and verify it's course. Without such review and potential change, they venture further down the wrong airway and end up single engine over unfamiliar terrain. I don't see any problems like UALs...but they had a great thing going and I think they may be messing it up over there - "they" being the management team. Of course...this is all just my observation only.

AZT

FDX is making money hand over fist. Purpose reviewed and course verified. But, I'm sure Fred would be more than happy to listen to your observations, what with your experience at starting up overnight shipping companies from scratch and all.

 

[VaB]

FDX is making money hand over fist. Purpose reviewed and course verified. But, I'm sure Fred would be more than happy to listen to your observations, what with your experience at starting up overnight shipping companies from scratch and all.

Easy Deuce. I see ya posting at 0230 in the morning, which probably means you were standing in the AOC. I'd be grouchy to. Just kidding.

But, I agree with AZ's Kinkos assessment. Kinkos suck. However, I don't think it'll even come close to dragging the operation down. The 2 different Kinkos I've been into have been less than stellar. Especially the one here in C-ville. That place was great when it was a WSC, now it's just got some minimum wage employees that aren't sure even how to use a computer. There's no way it will affect the overall operation though. Anyone hear of ZAPMAIL?

Now, Deuce, go get some more coffee and stay away from the corn.

 

[Kav]

I've been to both the FedEx/Kinkos store on Winchester and on Poplar in Memphis. I agree with you that both were a mess in parts of their business center/photocopy operations. But I can tell you most definately... at least at the Poplar location... and in two locations in Phoenix, where I live, that the package shipping operation was going gangbusters. I will admit that it looked like a mess behind the counter on the shipping side. But that was because there was a boatload of boxes that people dropped off to be shipped and the truck hadn't come yet to pick them up.

You have to remember what the main purpose was when Fred purchased the Kinkos chain.

1. To integrate the complete business solution. Meaning, to allow small and major businesses to publish/print and ship their work without ever leaving their office cubicle. Kinkos was an immediate set up with an already established brand name to do that. A customer can whip up a presentation that needs to be printed, packaged, and shipped to 200 different locations worldwide. Now, with the click of a few buttons on their pc, that customer will instantly have their work on it's way, via FedEx/Kinkos.

2. To immediately establish a nationwide and in a matter of a couple more years, a worldwide shipping outlet that has brandname recognition and credibility. Kinkos gave them that. FedEx fell behind UPS when UPS began to set up it's nationwide outlet via the purchase of Mailboxes ETC and via private outlets. So, FedEx gained immediate nationwide competitive advantage when Fred purchased Kinkos. You have to admit... everyone knows Kinkos. And now... everyone is getting to know FedEx/Kinkos on a very rapid basis.

I agree that there is much work to do in order to make FedEx/Kinkos the primo complete business/shipping center. But it's only been what now... a little over a year since the transition began? The Kinkos store buildings were originally built for business center and copying only. Not only do they now have computers that have taken up a portion of many stores... but now a good 1/3 of many stores is filled by the FedEx shipping center. This transition will continue to evolve until they find a good fit. But I personally believe it was a fantastic purchase. Even if the walk in business center were to completely vanish... the purchase will still be a home run simply from the accessability to FedEx shipping at every former store, the point-and-click print and ship opportunity, and the name brand recognition.

Time will tell....

Regards,

Kav

 

[Purpledog]

Two people in my family are directly involved with ops of medium sized businesses. One of them summed it up recently when I made my case for going with us for everything.
"If we need it there on time, we ship FDX"
"If we send it on the ground, we ship UPS"
"We tried DHL and it got there......sometimes, sometimes trashed, and sometimes late, but cheaper".

Both businesses use FDX for air and UPS for ground. We'll see, I think the puzzle palace must be doing something right since we're up 33% this qtr.

 

[boost]

If someone can name one store/restaurant/ any place of business that has efficent courteous employees working at minimum wage in the Memphis area, then let me know beacuse I have never seen it.
Kinkos can suck, but I think that name recognition and good locations around the nation have made it a household name right up there with Starbucks and Chilis and every other chain that is in every plaza in anytown USA. BTW, just the FedEx Kinkos side of things made 16 million last quarter which is more than most complete airlines out there! Not great, but still making money...I would hardly call that a failure!

 

[Laughing_Jakal]

Why UPS?

FedEx Ground is cheaper.....check it out.

 

[freeflyer14]

I have nothing to add to this thread other than the crappy kinkos service reminds me of the Chapelle show with the "pop copy" episode.

"Just remember you have a high school eduction and you don't have to take sh*t from anyone..."

 

[AZ Typed]

FDX is making money hand over fist. Purpose reviewed and course verified. But, I'm sure Fred would be more than happy to listen to your observations, what with your experience at starting up overnight shipping companies from scratch and all.

Easy...I was just posting observations. Also, when did I claim to have vast experience starting up a freight company? I simply posted some thoughts on what I've seen. Remember, when everything is good, it's really not as good as it seems. And when everything is bad, it's really not as bad as it seems. Yes FedEx is cranking in the cash, which is great. But so was UAL in the late '90s. Do I think Fred is an idiot? Heck no - he's a business mogal. I simply think that caution is advised for this rapid rapid growth model, that's all. And the bottom line is that when I go into a Kinkos to ship something, it's always difficult, so I go elsewhere. That's where the buck meets the road. (I still try as their's one a mile away, which is very convinient). Anyways...

AZT