"We really see UPS as an extension of our company. There is much more to our relationship than just taking a package from point A to point B."
In the depth of the recession in 2009, like many other small business owners, brothers Todd and Steve Messineo were worried. For 10 years they invested time, money and resources into Budget Golf, a Joliet, Illinois golf supply store. "We estimated business would be down 20 percent," Todd said. "We had to figure out a way to survive and decided the Internet was where we needed to go."
While other businesses scaled back inventory purchases, the Messineos studied retail trends and researched online opportunities. Hoping to attract enough business to break even, they focused sales efforts on their website BudgetGolf.com and eBay® page to reach a wider audience searching for discounted golf products. Instead of losing revenue, the small business drove sales by more than 200 percent! Despite the struggling economy, Budget Golf became an emerging e-retailer and needed to hire an extra 30 people.
Growing Business is Par for the Course
A growing number of retailers are using multiple channels as more sales are generated through the Internet than ever before. The Messineos worked with UPS® to identify customer interest in shopping from their mobile phones. Following tremendously positive feedback, the company teed off a mobile site just before the 2011 holiday season. In the first six months, the site generated 12 percent of total sales and more than 20 percent of Internet traffic. The operations team built a new warehouse to handle the extra orders, added a call center and a shipping/receiving department. "We had so many orders coming in that it overwhelmed our system," Todd said.
Linking Up with a Great Logistic Partner
UPS Senior Account Manager Todd Oliver analyzed their resources and created a logistics plan to manage inventory, website orders and eBay sales. "We really see UPS as an extension of our company," Todd Messineo says. "There is much more to our relationship than just taking a package from point A to point B. When our business grows — UPS grows."
Budget Golf utilizes a variety of UPS solutions to make sure customers have the best swing. With Quantum View® Manage, the operations team can track incoming shipments and plan the next day's shipping and staffing needs, saving time and resources. Once the orders are on the way, they can provide customers with tracking information using Quantum View Notify®.
CACHing the Opportunity
Budget Golf is located about 30 miles from the Chicago Area Consolidation Hub (CACH), UPS's largest ground package distribution facility. The proximity helps the team gain a full day in transit and products are often delivered much faster than the competition. "We now move 10 times the amount of packages as we did when we started."
The small business weathered the economic storm and shows no signs of slowing down. It started with five employees — now the multimillion dollar company is the largest golf equipment eBay e-retailer in the U.S.
"We call UPS and they bring us tools that fit our needs every time," Todd Messineo says. "Without their help, we could not have managed our rapid expansion, and we know they will help us through any challenges we might encounter in the future."