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The Finn Review - Issue 8

Interview with Mail Boxes Etc. General Manager, Mark Jones

The Mail Boxes Etc. story is incredible. Since 1980 MBE have opened around 5300 locations world-wide. This equates to 4 new locations each week for 25 years straight. MBE have also been ranked in the top-15 franchises in the world for 13 consecutive years by Entrepreneur Magazine's annual 'Franchise 500' list.

With 43 locations on the ground, Mark Jones is well on the way to building MBE into a household name in Australia and New Zealand.
He was kind enough to speak with me recently.

SF: Hi Mark, alongside names such as McDonalds and Subway, MBE is a legendary brand in international franchising - how many locations are you planning for Australia and New Zealand?
MJ: You're right Steve, the growth over the years has been incredible. We're on the verge of an exciting phase locally and ideally we'd like to have over 400 stores.

SF: Personally you've been involved with franchising for more than seven years - what do you enjoy most about the franchising industry?
MJ: It's been a real joy seeing people that have never owned a business finally realise their dreams. There's a lot of people that may not have bought an independent-type business but they've been comfortable enough to buy a franchise and it's very rewarding to see them do well for themselves.

SF: For the uninitiated, can you explain exactly waht services your MBE Business Service Centres offer?
MJ: The MBE Business Service Centre concept is a one-stop-shop. We are essentially a 'back-office' alternative for small and medium businesses. Our core services are document production, faxing, private mail boxes, international couriers, domestic couriers, plan printing, and even wide-format printing. We also do things like binding, laminating, and even mail-merge. We're in New South Wales, Queensland, Victoria, and New Zealand so everyone should drop-in for a visit!

SF: Does MBE use the Master Franchise model?
MJ: In a way - we use what's called an 'area system'. This means that we have a person on the ground in each area and they are responsible for growing the number of locations and providing support to the franchisees. Along the way, this person is also building a saleable business for themselves. I suppose the key difference between a traditional Master Franchise scenario and our 'area system' and is that we (the franchisor) have the Franchise Agreement with our franchisees.

SF: What's your thoughts on the future of franchisees owning multiple sites?
MJ: We just had our third franchisee purchase an additional MBE franchise. Going forward I think that's the way to go and I think we'll see more and more of that. It just makes for a stronger group over-all.

SF: From your experience what type of person makes the most successful franchise owner?
MJ: People with the right attitude. People who want to make money as opposed to buying a job. Normally the better people are the one's that follow the system instead of fighting it. In many ways it's also the people that have to make it work. For example young people with mortgages and kids tend to really have to make money to get themselves set-up. People with business experience generally have a good understanding of things. In our business you also have to be a good communicator because you're building long-term relationships with your clients. Most of our customer-base use MBE as their back-office so you've got to be a good communicator.

SF: Head office is in Sydney - how have you set-up your support structure?
MJ: Our area people handle the day-to-day support of the franchisees on the ground. They deal with topics such as business development, system compliance, and operational issues. Here at head office we provide direction through various divisions such as our marketing department and finance department and I look after the General Manager's role.

SF: Do your franchisees need to be marketing-savvy?
MJ: The reality is you can't just sit there in your store and expect everyone to come to you. In this business you've got to market yourself, you've got to get in front of people and explain what you do. Fortunately our marketing program is very comprehensive and very detailed. We use a lot of direct-response local area marketing and it works really well for us.

SF: What do you see as your point of difference in the marketplace compared to your competitors?
MJ: It's like I said before, we're a one-stop-shop. Not just printing. Not just packing and shipping. Not just post. MBE provides a full back-office solution to SME's. In Australia in particular, were B2B not B2C. Think of those large CBD towers - there's usually enough individual businesses in one of those towers to support a MBE store. Every business is a potential customer.

SF: What do you see as your biggest challenge over the coming years?
MJ: First and foremost finding quality franchisees. There's a lot of good franchise businesses out there now. The other thing is securing great locations for our Business Support Centres.

SF: Finally Mark, what franchises do you admire most in Australian franchising?
MJ: I think Janine Allis has done very well with Boost Juice in a short space of time. I also like the way Gloria Jeans do things. I'm a customer of theirs and I like the way they've stuck to their market.