Thinking Inside the Big FedEx Kinko’s Box
It’s no secret some of the toughest competition distributors face today comes from the big box stores selling printing, stock forms and supplies, coupled with online ordering convenience. What may not be so well-known, however, are the competitors’ strategic plans for future growth. Below are highlights from an April interview conducted by Cary Sherburne, senior editor of graphic-arts community website WhatTheyThink.com., with FedEx Kinko’s acting CEO Brian Philips. Philips offered insights into the enterprise’s current priorities and objectives going forward, which are summarized here.
• Our dual objectives are to drive profitable core copy/print growth and profitable shipping volume growth. We feel we are doing the right things on both fronts. Office products are more of a convenience for our customers. But, we are never going to out-staple Staples on office products, nor are we trying to. It is more of a 7-Eleven plan on office supplies. When people ship or print, they are doing a lot of other business with us as well, including office supplies. We see a lot of attachment.
• Close to 90 [percent] of all of our [FedEx] account holders use the FedEx retail shipping channel at some point in time during any 12-month period. In some instances, large customers use us as a drop-off point when mobile professionals are on the road, or as a backup to their courier, since we have the latest cut-off times in the market. For consumers and small businesses, we are almost an exclusive access point and they use us for most of their transactions with FedEx.
• We have great detail on what shipping customers do in copy/print and office products, for example, when shipping was the primary purpose in coming to us. We can see how other things attach to copy jobs, particularly office supplies. We have also begun to bundle things together to encourage customers to buy more than one service when they do business at our centers. For example, we provide notary service, and we bundle that notary service with copy and an overnight envelope. Most of the time when something is being notarized, it is a critical transaction and the customer wants a document to retain, as well as to get the document where it needs to go as quickly as possible. Sometimes a customer buys a banner, and we roll it up, put it in a tube and make it easy for them to protect their product.