All you need to know about private mailboxes

Have you ever walked into one of those postal and business services centers and noticed the bank of mailboxes? You might have wondered who would pay to have mailbox services when home mailbox service is free. What you might not realize is that many of those mailboxes are actually "storefronts" for some very intriguing small businesses.

A 2002 independent study commissioned by Mail Boxes Etc., Inc. and UPS revealed that more than 60 percent of private mailbox customers use their mailbox for business purposes; nearly 75 percent of those work from home.

"We’ve been serving small business for over 20 years," said Stuart Mathis, president of The UPS Store and Mail Boxes Etc. "In recent years, we’ve done some research to help us understand these customers and their needs more clearly ... There are as many different ideas as there are mailboxes."

A closer look at this consumer segment provides a glimpse into the diversity of product and service offerings from the nation’s 22.9 million small businesses. Among the standard mix of consultants, accountants and freelancers are some creative and innovative entrepreneurs who demonstrate that American ingenuity is alive and well.

Examples abound, including a company that provides free weekend support and educational retreats specifically tailored for women who have, or have had, breast cancer and a company that manufactures self-molding novelty teeth.

The birth of the online auction industry has fueled even more growth for the mailbox services industry. eBay has millions of registered users around the world.

At some point in the growth of these businesses, the proprietors (eBay calls them "Power Sellers") realize that their home mailbox can no longer accommodate the volume of mail they’re receiving.

According to the mailbox user study, being able to provide their customers with a mailing address other than their home address or a P.O. box rates high with small-business people. Private mailboxes provide a safe, secure place to receive not only mail but also packages. Unlike the post office, places like The UPS Store or Mail Boxes Etc. can accept packages on behalf of a mailbox customer from any carrier or delivery company.

"For many of our small-business customers, we’re more than just a mail drop," said Mathis. "We’re also their shipping/receiving center, office supply store, and duplication center."

It doesn’t surprise Mathis that many of his company’s franchisees have developed close relationships with their customers. "Our franchisees are small-business people themselves," he says. "Therefore, they understand the unique needs and challenges of this market."

According to the Small Business Administration, 2002 saw the creation of more than 550,000 new small businesses. As workers are downsized or given early retirement, many take the opportunity to pursue the dream of being their own boss and testing the entrepreneurial waters.