PostNet

In July, 1993, after operating as independent small business consultants for more than 10 years in the mail and parcel industry, the founders of PostNet International Franchise Corporation took a leap of faith into franchising. That leap of faith, as described by PostNet's President and Chief Executive Officer Steven Greenbaum, was "logical and consistent with our evolution as a company and industry."

PostNet's early vision of the industry was illustrated in its first franchise brochure entitled Experience the Evolution of an Industry. Greenbaum said, "In 1993, we likened the mail and parcel business to the Pony Express and the general store. Mail and parcel centers essentially are the general stores of today and tomorrow. They are places where people go to send and receive items, purchase products, communicate and build long and trusting relationships with the shopkeeper, who is typically well entrenched and respected in the community." Greenbaum went on to explain, "We utilized a timeline in our initial brochure which illustrated every significant invention or achievement in postal, business and communication technology up to the inception of PostNet. The message positioned PostNet as the conduit to the customer for the providers of this technology. PostNet's convenient retail locations provided the bricks-and-mortar, relationship-based interface that offered value to the service and product vendors that needed to reach the local and community markets." It was this early vision that fueled PostNet's growth and continually placed the company as an industry leader, both in terms of franchise system growth and technology.

Leap ahead to October, 1994, when PostNet's Director of Information Systems, Rick Greenbaum, conceived the original idea that became the foundation for PostNet's Internet and E-commerce initiatives. "I was always intrigued with the concept of being able to communicate with other computers to send and receive information and do it with a personal computer from the privacy of your own home," Rick Greenbaum explained. "We introduced PostNet's first web site to the 'Net' in early 1995. At that time, Mosaic was the beta version of Netscape. Other industry standards at that time included the use of 14.4 modems (prior to the release of 28.8), which have been replaced by ISDN, cable modems and DSL.

PostNet's initial web site was among the first on the Internet from the industry of franchising. The original concept was that of an on-line franchise sales brochure with the added value of user-friendly features, including a searchable database of franchise locations. From an efficiency standpoint, PostNet also felt that it could deliver franchise information faster and cheaper than its competitors via the web site, which translated into more sales and significant savings in mailing costs.

"We were operating on 'Internet time' long before it was fashionable," said Steven Greenbaum. "When someone is researching franchise opportunities, it is typically an event driven decision. Once the decision is made to go into business for himself or herself, the prospect wants to start the investigation process immediately. The Internet, coupled with PostNet's response time of 4 business hours or less, provides an excellent vehicle for prospective franchisees to get the information they need fast." As companies like Yahoo developed, PostNet positioned itself at the top of search engine listings, making it easy to find PostNet on the web and easier for customers to do business with PostNet. The company also included its web site and E-mail addresses in all its printed materials and throughout its franchised locations, with the intent to drive people to the PostNet web site.

Over the past few years, PostNet has updated the image and content of its site regularly and added detailed content, including information about the company, its corporate goals and objectives, vision, core values and commitment to its franchisees. The site also takes you into a PostNet franchise to fully explain the full line of products and services and its unique delivery of sensational customer service coupled with neighborhood convenience. Consistent with PostNet's early vision of using the Internet as a franchise sales tool, you can also find a description of the company's multitude of franchise opportunities, as well as request franchise information on-line or submit an application for consideration. Another differentiating factor about PostNet is that it publishes a complete list of E-mail addresses for its managers and senior executives on its web site. They are always available to respond to prospective franchisees, vendors or customers, consistent with the company leadership's open door policy and commitment to accessibility. In 1997, PostNet introduced its Franchisee Web, a password-protected Intranet site that can be accessed from PostNet's home page. The Franchisee Web was developed solely for the purpose of bringing value to its franchisees.

PostNet's Franchisee Web is the culmination of focus group meetings with franchisees and PostNet's National Franchisees Advisory Council. The meetings determined where and how to add value to the system. According to Brian Spindel, PostNet's Executive Vice President and key contributor in the Franchisee Web's development, it is "a continual work in progress. We were intent on utilizing the Internet to support our mission statement and our commitment to our franchisees by utilizing the latest technology to cost-effectively connect our stores and enable them to communicate and interface in real time." To support that commitment, PostNet provides a Message Board utility for franchisees to post and respond to day-to-day issues on topics from hiring personnel to customer service policies. Participation is open and encouraged by all members of the PostNet family from the executive management team at PostNet headquarters to international franchise owners and partners around the world. PostNet also provides a Chat Area on its Franchisee Web for real-time discussions covering a wide variety of subjects. According to Spindel, "These tools provide us with an opportunity to stay connected to our franchisees and their issues on a day-to-day basis."

PostNet's Franchisee Web also includes various industry-specific tools like an Address Resource, which assists PostNet franchisees in making business easier at the point of sale. PostNet also provides access to its approved vendors with on-line ordering and account servicing, regularly scheduled chat sessions and a download section, which includes everything from logos, marketing materials and press releases to PostNet's current national television and radio commercials. According to Ron Bradley, a PostNet franchisee in Asheville, North Carolina, "The Franchisee Web is an asset not only to the franchisee, but also to the customer. It allows for many opinions that could ultimately maximize the profit margins for the owner, and optimize the customer's satisfaction through a 'team of opinions and advice.' It's like having an extended family all over the country and world."

PostNet's Intranet site also includes a Franchisee Profiles area. It was developed and administered by franchisees, so they could better know and understand each other's unique attributes and challenges. Franchisees can post their store information and share experiences, including unique products or services, as well as contact information and photos. Unlike other franchise systems, PostNet provides a certain level of flexibility in terms of product and service offerings due to the unique convenience-oriented nature of the business. This flexibility is carefully managed to ensure that the PostNet system and standards remain intact; however, it provides an excellent opportunity for franchisees to carve out competitive niche markets in their local communities. For example, you will find Karen Hehn of Hilo, Hawaii, the Franchisee Profiles creator, illustrating her use of technology (including large format picture imaging and high speed color copying) and sharing her secret to carving out her niche on the Islands.

The National Database utility, another breakthrough technology initiated by PostNet enables franchisees to upload their customer records for inclusion in a national mail management system. This allows for regular, seamless promotional mailings to their customers. PostNet's National Database utility enables PostNet to support the re-marketing efforts to its franchisees' current customers, while franchisees focus on bringing in new customers. "It's all quite simple," explains Spindel. "We wanted to create a vehicle for our franchisees to add value to their customers shopping experience and, at the same time, make it easier for our franchisees to grow their businesses." There are presently over 200,000 PostNet customers across America benefitting from this utility. All costs associated with the direct marketing efforts are funded by PostNet's National Ad Fund at the recommendation of PostNet's National Franchisees Advisory Council.

PostNet franchises can also download current and past copies of PostNet News, PostNet's monthly newsletter, as well as past bulletins. They are able to communicate with their respective National Franchisees Advisory Council respresentatives at the click of a mouse button. Franchisees can link directly to PostNet's franchise support department, just as easily. From there, franchisees can order supplies or customized marketing materials, reserve professional displays for local or community trade and business shows, and check PostNet's activity calendar for upcoming local and national events. PostNet franchisees, Jim and Diane Hutkin of Fort Collins, Colorado, comment, "Being connected to the Franchisee Web is like having 500 knowledgeable consultants on your staff. It allows us all to grow our businesses utilizing ideas from all over the country."

One more leap ahead takes us to February, 1999, with the launching of PostNetonline.com, PostNet's E-commerce site. Spindel describes it as "what really puts the 'Net' in PostNet." PostNetonline provides small business owners and the general consumer with the opportunity to purchase a wide variety of fully customized products and services, such as business cards and stationery, rubber stamps, labels and stickers, logo merchandise and advertising specialties, all from the convenience of their own homes or businesses. PostNetonline has a unique graphic interface that allows consumers to either fully create or customize their printing orders using pre-developed templates. They can also build their own style or appearance, as well as insert photos or graphics. The same holds true for PostNetonline's web page design area, where consumers can place their own customized web sites on the Internet, or create on-line product offerings and participate in the E-commerce revolution. What's even more revolutionary is that each time a consumer makes a purchase on PostNetonline.com, he or she enters his or her ZIP Code and selects the nearest PostNet center, the on-line sale is fully credited to the selected PostNet center. PostNet proclaims that "this is another way of adding value to our franchise owners' investment in the business and system."

If you are in need of a business address in a far away land, through PostNetonline.com, you can rent a private mailbox at any participating PostNet center in the world. Also, you can purchase flowers, gift baskets and executive gifts for even the most discerning clients. When it comes time for a business or personal relocation, PostNetonline provides an easy to use utility for selecting and ordering the right amount of moving boxes, packaging materials and supplies, which are then shipped direct to your home or office. When it comes to service, the nearest participating PostNet center can be accessed through the Internet or PostNet's toll-free telephone number, in order to obtain a price quote for the moving or shipment of your boxes or furniture, removing the hassle of preparing for and completing a move.

When asked where PostNet goes from here, Brian Spindel says, "PostNet Postal and Business Centers and PostNetonline.com will continue to evolve in meeting consumer needs and using technology as the Internet continues to evolve. We see PostNet as a convenient resource for small business owners, small office/home office workers and general consumers with the added value of providing totally outrageous service. We are committed to the philosophy and culture of 360-degree marketing and providing our franchisees, suppliers and customers with 24/7/365 access to PostNet's products, services and resources."

It's no wonder that in just over 6 years PostNet has grown to more than 650 licensed locations worldwide. Currently, PostNet is operating in 17 countries with options signed in an additional 28 countries. When we asked Steven Greenbaum what PostNet's long terms plans were, he smiled and replied, "world dominance, at least in the postal and business services industry!"