Fake vs. Real Revenue Streams in the Mailbox Industry

Discover the difference between genuine and superficial revenue streams to boost your mailbox business effectively.

I recently read an insightful piece from the AMBC(Association of mail & business centers) about distinguishing between fake and real revenue streams. As someone interested in the mailbox industry, I thought it would be helpful to share the insights and my takeaways from the article with you.

"Shipping is a flat revenue stream."

"So, you must have multiple revenue streams."

We all want to increase our high-margin revenue. Let's explore how to differentiate between fake and real revenue sources.

Real Revenue Streams

Shipping Services:

Traditionally, shipping services have been a steady income source for the mailbox industry. However, with many e-commerce platforms offering drop shipping and free shipping options, the demand for shipping services has decreased. Even so, it remains a reliable, albeit flat, revenue stream.

Virtual Mailbox Services:

Pros:

- Proven revenue generator with high demand.

- Utilizes existing CMRA operations, requiring minimal space.

- No risk and no initial cost.

- Platforms like Anytime Mailbox, iPostal1, and PostalMail can send customers to you.

- Uses up less space than most other revenue drivers in your store.

- Platforms send customers to you, and you earn from each customer referred, creating a strong revenue source. Anytime Mailbox, iPostal1, PostScanMail & more

- Bizbox Center: Choose a plan that fits your store, pay a small monthly fee, and offer additional services like notifications and virtual mailrooms to generate extra revenue from existing customers.

Cons:

- Platforms take a percentage of the profits, usually between 40% and 70%.

Potentially Fake Revenue Streams

Amazon Lockers:

Pros:

- Convenience for customers who prefer picking up packages at their convenience.

- Attracts foot traffic to your location.

Cons:

- Takes up space that could be used for other profitable services.

- Does not directly generate revenue unless coupled with other services.

Conclusion: An Amazon locker may take up space and not drive any revenue.

Western Union Services:

Pros:

- Attracts customers needing to send money internationally.

- Can drive additional foot traffic to your store.

Cons:

- Requires upfront cash reserves.

- The commission might not justify the effort and space required.

Conclusion: Western Union’s upfront cash responsibilities often don’t work.

UPS Access Point or FedEx Authorized Center:

Pros:

- Recognized brands can attract more customers.

- Potential to increase revenue through package handling fees.

Cons:

- Success depends on the level of service provided.

- Requires dedicated space and resources.

Conclusion: A UPS Access Point or FedEx Authorized Center can be hit or miss depending on the level of service you provide.

Declining Revenue Streams

Printing Services:

In the past, printing services were a significant revenue source. However, as more people go directly to manufacturers for lower costs, demand has decreased. If you have a knack for design, consider offering design services with printing as a value-added service. Also, emphasizing express service for local customers who need quick turnaround can be a good alternative. Overall, providing this service can still generate additional revenue.

There are many other potential revenue sources, but we'll stop here for today. I hope you found this information useful!