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Visit Dan Hex's column >>

DAN HEX

Articles Posted: 5  Links Seeded: 273
Member Since: 7/2006  Last Seen: 9/14/2011

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Paper Jam at FedEx Kinko's

Seeded on Sat May 5, 2007 1:27 PM EDT
Read ArticleArticle Source: The New York Times
business, fedex, kinkos
Seeded by Dan Hex
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Well, my predictions for Kinko's after the FedEx merger are proving to be correct. The culture is gone and it's not coming back. It is no longer, and hasn't been for some time, a resource for document solutions. It is now just a shipping center.
CD&R didn't understand it and FedEx doesn't understand it. You couldn't compartmentalize the business. Why? Because each community had a Kinko's that in most cases was a microcosm of it. A good Kinko's location had key staff that understood the customers, the local businesses and the technology.
That's why each location was dramatically different. That's why locations had co-workers with nose-rings and blue hair. That's why people loved Kinko's or hated it.
CD&R failed where FedEx is failing. The document products are not static - they're dynamic. Each product is "made to order" - never the same thing twice.
It's too bad - Kinko's was a great company. Unfortunately, it was never a company that would do well under normal Wall Street expectations. Now, it will continue on it's path to being a shipping center only. Simply, your old Kinko's that helped so many small businesses get started and helped so many people get high-quality professional looking printed material is gone.

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  • Public Discussion (5)
James...

Here in Los Angeles I haven't seen or experienced any compromise in service, knowledge or tech skills... in fact, I know things are much better since FedEx acquired Kinko's. I don't miss the blue, red and orange hair skate board riding, hopped up and tweaked out bicycle riding people who sported tongue, navel and multiple nose piercings who's language was a cross between surfer dude and Ebonics. In business image is everything and I'm sure FedEx did not want that image attached to it's brand!

    Reply#1 - Sat May 5, 2007 8:07 PM EDT
    Dan Hex

    That may be the perception in individual cases and locations such as yours. The attrition rate for Kinko's and loss of commercial sales nationally would strongly suggest that the core products and services they were built on have changed dramatically. The fact that the founder of the company can't even walk into a store is a significant indication. As far as the FedEx brand is concerned, Kinko's original products were and are a poor match. A company such as FedEx that's is predicated on 100% accuracy, or close to it, would not easily manage a dynamic product such as custom documentation.
    Kinko's is now a shipping center. They have begun cutting away the document creation cost centers and are no longer the "Kinko's" people loved or hated - because it certainly was both.

    • 1 vote
    Reply#2 - Sat May 5, 2007 10:47 PM EDT
    James...

    Dan I will quickly admit my point of reference is of a micro and not a macro view of the FedEx Kinko's situation. When I read this article initially and after reading your comments to my post... I believe demand dictates what happens at a given location. I say that based on my micro experience when I visit a FedEx Kinko's anywhere in the Southern California area... They are super busy fulfilling the Kinko's side of the business compared to servicing the FedEx end of the business, except for two locations... Santa Monica and Beverly Hills who are extremely high volume shipping centers... you won't find the skill document people in those two high volume shipping locations as you would at others locations who have a demand for their skills.

    FedEx move to acquire Kinko's was in the best interest of FedEx. I don't believe Kinko's original products was or is a poor match for FedEx. I think FedEx's highly successful system of on time delivery would enhance the Kinko's brand as well as having the ability to ship your documents from the same location.

    I think FedEx has tailored it's strategy for the greatest profits which means each location will focus on what service is the most profitable... Shipping or Document services. One things for sure the new FedEx Kinko's is going to share that same love hate opinion.... either you love them or you hate them... and I think you and I exemplify it.

    Have a great day,

    James...

      Reply#3 - Sun May 6, 2007 4:46 PM EDT
      Dan Hex

      James - I definitely don't hate Kinko's...far from it. I worked for them for over 10 years. I orginally seeded this as part of the RSS feed feature for Newsvine and also to email past Kinkoids, with the intent of making it private. After your response I decided to keep it public so we could continue the discussion.
      Am I disappointed in the direction? Yes and no.
      Do I think some Kinko's still rock? Absolutely.
      I actually think the old Kinko's had it's day. Technology has changed so much, the Kinko's people were used to in the '90's kind of went away. We used to get people in who couldn't do some of the things digitally they can do now.
      I will say from personal experience, that Kinko's was a poor "Wall Street" offering. When CD&R was pushing to meet those types of goals, it just wasn't doable. One of the results was that alot of good people left. And that hurt the culture.
      Yet, I stand by my statements...the document services will continue to disappear, largely because it's difficult, the chance of error is high and the profitability will continue to be in shipping.
      So perhaps my statemts of "FedEx failing" is not entirely accurate - maybe they are actually being more successful depending on your view.
      I'm pleased to hear that people can still be satisfied with what the company has to offer by way of document services. It make me feel good that a lot of the work we did still has some residuals.
      It was a great company to work for and I had a blast when I was there. In many ways I still miss them.
      The "co-workers" took great pride in Kinko's and LOVED Paul Orfalea, the founder.
      Again, as with many things, sometimes the sun sets. After reading the article, I sort of felt that it was a public statement that the old Kinko's has pretty much gone away and something totally different has been left behind.
      Thanks for the comments...

      • 1 vote
      Reply#4 - Sun May 6, 2007 11:31 PM EDT
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