Staples business center: Learn Everything About the Staples Fax Service [Top Tips]

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Learn Everything About the Staples Fax Service [Top Tips]

Faxing has made its comeback through the use of online faxing apps and services. Frequent faxers opt to skip fax machines and choose a reliable online fax provider instead.

If you need to send faxes now and then, using Staples fax service might be a solution for you. DoNotPay will explain how to fax at a Staples Business Center and show other alternatives to faxing a document!

Can You Fax From Staples?

Staples provides services and office products designed to create inspiring and productive work environments. One of the many tasks you can perform at Staples is fax. While Staples sells fax machines, you can also use one of their business centers to send a fax from time to time. 

How Much Does It Cost To Fax at Staples?

Staples stores have self-service fax machines for customers that need to send an occasional fax. The prices may vary slightly depending on the store’s location. Take a look at the list below to get a general idea of their services’ costs:

  • Sending faxes—The price is about $1.79 for faxing locally
  • Receiving faxes—You have to pay around $1 to receive a fax
  • Long-distance faxing—Faxing within the U.S. costs around $2 per page. Sending a fax to an international number is around $5.99 per page
  • Additional pages—Prices of additional pages are $2.19 for local and $3.99 for international faxes 

How To Use Staples Fax Services

Faxing via Staples’ fax machines is simple, as long as you follow instructions. Below is a list of key steps for sending and receiving faxes via Staples public fax machines:

Staples Fax Machines
Sending faxes Receiving faxes
  1. Access the official Staples website to find a local store
  2. Prepare a hard or digital copy of your document
  3. Follow the instructions on the fax machine or ask a store clerk to help you
  4. Take the receipt and the confirmation the machine prints out and carry it to the cash register after you send the fax
  1. Visit the Staple’s official website or contact the local store to get its online fax number
  2. Ask the store associates to retrieve the fax for you
  3. Pay for the fax after picking it up at the store

You can also use Staples’ fax machine to make black-and-white and color copies. The fax machines are available to customers during regular store hours.

Online Faxing Providers vs. Staples Faxing Services

There are many advantages to faxing online as opposed to using fax machines. Subscribing to an online fax provider is a much more practical solution. It will save you the trip to the Staples fax center every time you need to send a document. All you need is:

  • Strong internet connection
  • Digital device—such as your PC, Mac, or smartphone (Android or iPhone)
  • Online fax number from your online fax provider

You will be able to attach documents and transfer them safely to the recipient’s inbox.

The disadvantage of online faxing services is the price. Web-based faxing companies are typically expensive and offer services adapted for regular faxers.

Luckily, there are more options on the market. If you use DoNotPay, you will get all the advantages of online faxing at a low cost!

Faxing With DoNotPay Is Simple and Affordable

Most people don’t have to fax that often. Overpaying for a service you will use only sporadically can be a waste of money. 

In rare cases, when you need to fax a document, using Staples fax service can also feel like a chore. If you find running to the Staples store every time you need to fax too exhausting, we offer an easier way!

With DoNotPay, you won’t have to give up quality for a low price. We offer a complete service, which includes:

  • Uploading files and photos easily
  • Sending up to 100 pages each month
  • Faxing from any digital device 

DoNotPay has included additional perks in its original offer, such as:

  • Snapping a photo of your checks and bills to avoid scanning
  • Combining our fax service with the Legal Documents feature to create, sign, and transfer legal files safely from one place

Send a Fax With DoNotPay in a Jiffy

Sending faxes via our app is as simple as sending an email. You only need to follow these instructions:

  1. Access DoNotPay from any web browser
  2. Choose our Fax feature
  3. Select the Send a Fax option
  4. Snap a photo or upload a document you wish to fax
  5. Type in the receiving fax number in the required field

DoNotPay will send you a notification as soon as your fax reaches the receiver’s inbox!

Use DoNotPay To Discover Other Ways of Faxing a Document

There are many other ways to fax a document. Use our learning base to find out how to:

DoNotPay Keeps Your Privacy Intact

DoNotPay can help you surf the web safely and securely. No need to provide your personal information to every company whose service you’d like to take for a test drive. Our Virtual Credit Card and Burner Phone products shield your data from prying eyes and dishonest merchants.

Feel like subscribing for a free trial? Make it truly free and avoid automatic membership renewals with our card. It can also help identify spammers and potential scammers who send bothersome robocalls and robo texts your way. As soon as they act on the virtual card number, DoNotPay will unmask them and demand compensation!

DoNotPay Can Help You Bring Any Business to Justice

Should a company refuse to grant you a refund or compensation, our app will help you take them to small claims court! 

We’ll help you cancel the service in question to avoid any future charges, and we’ll call their customer service so you can get info on your denied request. We’ll draft the relevant court documents for your jurisdiction and give you instructions on filing them.

More Nifty Features That’ll Make Your Day

You may not have breach of privacy issues or reasons to bring someone to court, but you surely have ample motivation to save or earn a few dollars here and there—especially if we catch you unawares!

DoNotPay can show you how to reclaim funds that you didn’t know were under your name or make a denied warranty appeal to any company. We streamlined the processes of requesting refunds, college fee waivers, airline flight compensation, parking infraction dismissals, as well as applying to clinical trials that pay!

Staples Plans To Buy Office Depot’s Consumer Business In $1B Deal

Retail office supplies giant Staples Friday said it plans to acquire the consumer-focused business of Office Depot, including the Office Depot and OfficeMax brand names, in a $1 billion deal that would leave Office Depot completely focused on the business-to-business market.

The acquisition proposal is the latest in a long-running dance between the two competitors. Staples in January offered to acquire Office Depot in a $2.1 billion deal that would likely see Staples divest Office Depot’s B2B-focused CompuCom and/or its Business Solutions Division.

In the deal, outlined in a letter released by Framingham, Mass.-based USR Parent, the parent company of Staples, the company is offering to spend about $18.27 per share to acquire Office Depot’s consumer business, which is about 43 percent of the 30-day average closing share price for Office Depot as of June 2.

[Related: 4 Reasons Why Staples-Office Depot Deal Could Get The Green Light]

Neither Office Depot or Staples replied to a request for further information as of press time.

Office Depot has already been taking steps that, together, open the way for a smooth sale of its consumer business to Staples.

Office Depot in January unveiled a plan to sell its CompuCom IT solution provider business. CompuCom is a large national systems integrator that Office Depot in 2017 acquired for about $1 billion.

Office Depot in May then unveiled a plan to split into two companies based on its retail and B2B businesses.

In the $1 billion deal proposal, Staples Friday said it wants to acquire all assets related to Office Depot’s consumer business, including its Office Depot and OfficeMax retail business, its officedepot.com direct channel business, and the company’s Office Depot and OfficeMax brand names and other intellectual property.

Such a sale would leave Office Depot a business-to-business product and services company, including its CompuCom business, its Grand & Toy Canadian-focused workplace products and solutions provider, its Office Depot federation of smaller office supply dealers acquired over the years, its B2B digital platform technology business, its corporate office, its global sourcing office and its other sourcing, supply chain and logistics assets.

Office Depot would have the right to a royalty-free use of the Office Depot and OfficeMax brand names for an agreed term after the acquisition closes, Staples said.

Staples also said it started working on regulatory approval for the deal in November and expects to “expeditiously obtain” necessary anti-trust approvals.

Staples Associate Directs $7,500 to Center for Women & Enterprise

Staples Associate Directs $7,500 to Center for Women & Enterprise

Framingham Staples Associate Chooses Non-Profit Organization to Benefit from Staples Foundation Grant

Boston. MA (February 6, 2014) – Staples Foundation, the private charitable arm of Staples, Inc., has awarded $7,500 to Center for Women & Enterprise (CWE) under a program that lets Staples associates direct donations.


(February 6, 2014) – Staples Foundation, the private charitable arm of Staples, Inc., has awarded $7,500 to Center for Women & Enterprise (CWE) under a program that lets Staples associates direct donations.

The Staples Foundation Grant will be used to support the Center for Women & Enterprise’s Community Classrooms Program. Community Classrooms brings classrooms and resources directly into underserved communities, to help them transform their lives, escape from poverty, create financial resources, create jobs and drive economic growth. The Community Classrooms program offers access to entrepreneurship training and business resources to residents in urban areas historically isolated by poverty, lack of transportation and slow economic growth. The primary goal of Community Classrooms is to fortify underserved communities, building a more stable economic environment by eliminating barriers that hold residents back.

“We are grateful for the support and generosity The Staples Foundation and it’s associates have shown to the Center for Women & Enterprise and the women we serve,” said Susan Rittscher, President & CEO of CWE. “Their donation will help us further our goal of providing access to programs and services in support of economic stability and growth through entrepreneurship in underserved neighborhoods and communities.”

The grants are part of a philanthropic initiative created by Staples Foundation which allows Staples associates around the world to direct funding to non-profit organizations that are focused on education or job skills. The program encourages local community engagement by awarding larger grants to organizations where associates are highly engaged in volunteering or fundraising – up to $25,000 per organization.

The program, called 2 Million and Change, will award funds to organizations around the world, reaching more than $2 million in grants by the end of the year. In 2012, associates globally directed more than $2.1 million of Staples Foundation grants to 470 non-profit organizations.

“Staples Foundation is committed to making a positive impact in the communities where our associates live and work,” said Katy Dobbs, director of global community and giving for Staples, Inc. “Through our program, we are pleased to support our associates and the local non-profit organizations that matter to them most.”

About Staples Community and Giving

Staples is dedicated to providing education and job skills opportunities in communities where our customers and associates live and work with a primary focus on support disadvantaged youth, from literacy and mentoring to career skills development initiatives. Staples supports these causes through corporate contributions, in-kind donations and grants from Staples Foundation, the private charitable arm of Staples, Inc. Through its global community and giving efforts, Staples has helped more than 6,500 organizations in local communities across 26 countries. Community and Giving is also an integral component of Staples Soul, which recognizes the connection between long-term business success and the impact Staples has on associates, communities and the planet. For more information, visit www.staples.com/community.

Center for Women & Enterprise – Established in 1995, the Center for Women & Enterprise (CWE) is a non-profit organization dedicated to helping women start and grow their own businesses. 

As New England’s leading organization for women entrepreneurs, we work hard to ensure that all women, regardless of their economic status, are provided access to our programs and services. CWE offers scholarships to disadvantaged clients while fostering influential relationships for successful business women at the other end of the financial spectrum.

The Center for Women & Enterprise provides education, training, resources and connections to women (and men) through three locations in Boston, MA; Worcester, MA; and Providence, RI. 

In addition, CWE is the New England affiliate for Women’s Business Enterprise National Council (WBENC), serving as their certification arm for women-owned businesses. WBENC Certification is nationally recognized in helping established women business owners access new corporate contracts with organizations that are actively seeking supplier diversity. 

Exclusive: Lakers extend Staples Center lease for 20 years

With their lease at Staples Center expiring in a few years, the Lakers could have followed the Clippers’ plan, moving to another part of town, building their own arena and keeping all the revenue.

Instead, the defending NBA champions have chosen to stay put.

In a deal expected to be announced Thursday, the franchise will extend its lease with owner AEG for another two decades through 2041. The agreement includes a commitment to spend “nine figures” on capital improvements and upgrades throughout the 22-year-old arena.

A team official said renovations were key to the extension, as was a desire to remain downtown.

“Location, location, location,” said Tim Harris, president of business operations for the franchise. “We’re in the heart of L.A. and the infrastructure is building up all around us.”

It also helped that the Clippers are leaving for Inglewood soon, potentially allowing the Lakers, Kings and Sparks to expand their locker rooms on the arena’s lowest level.

In terms of age, Staples Center ranks around middle of the NBA, where arenas average 20 years old. By 2041, it could rival 53-year-old Madison Square Garden in terms of seniority.

But Scott Minto, director of the sports MBA program at San Diego State, says that isn’t necessarily bad.

“I don’t think it hurts a team to be in the same place, provided that the arena does some significant renovations to reinvigorate itself,” Minto said.

Only a few years ago, business mogul Irving Azoff approached the Buss family about moving the Lakers back to Inglewood. In a 2017 email obtained by The Times, Azoff suggested razing and rebuilding the Forum.

The matter was complicated by the fact that AEG head Philip Anschutz controls 27% of the team, with the Buss family owning 66%. (Times owner Patrick Soon-Shiong is another minority investor, owning less than 5%).

The team never followed through on Azoff’s proposal and, around 2019, began discussing a lease extension with AEG and the Kings. The parties brainstormed a wish list of upgrades at every level of the arena, including the highest section where the cheapest seats are.

“That’s my favorite piece,” AEG president and chief executive Dan Beckerman said, adding that changes to the upper concourse will “capitalize on the uniqueness of the proximity to the downtown skyline.”

While no construction details have been announced, the refurbishments will be overseen by the arena’s original designers and could begin within several years. They will focus on creating spaces where people can gather away from their seats, continuing to watch the game either on television monitors or by looking directly over the floor.

The Dallas Cowboys incorporated standing-room only areas when they opened AT&T Stadium in 2009.

“Fans are not the same as they were 25 to 30 years ago,” Minto said. “The trend now is to more open space and mingling. In terms of revenue, it is critical that these upgrades be done.”

Staples Center has the size and flexibility to adapt because of when it was built, the professor said. Many arenas constructed during the 1980s were limited in size to about 500,000 or 600,000 square feet; that thinking changed by the late 1990s and Staples Center comprises 1 million square feet.

Wide concourses and other areas outside the main bowl allow for expansion.

“Staples was built with a lot of new trends in mind and it still has that modern feel,” Minto said. “It can withstand more touch-ups than a lot of places built only a decade before.”

Still, with the Clippers planning a billion-dollar arena complex across from SoFi Stadium, it became crucial for Staples Center to retain its anchor tenant.

“In a lot of ways, the Lakers put the arena on the map, winning three straight championships in our first three years,” Beckerman said. “Their success has had such an impact on our success.”

From the team’s perspective, there was value in sticking to an arena that, as host of major concerts and events such as the Grammy Awards and Democratic National Convention, has become nationally known. The adjacent L.A. Live, with its restaurants and hotels, is a drawing card for fans

“Look, we always wanted to stay at Staples,” Harris said. “We’d grown up with the building.”

The franchise is well aware of the potential revenues from constructing its own venue. Tickets and food are only part of the equation — there is money to be made from new naming rights and renting the space during the offseason. Venue deals often come with surrounding real estate that can be developed.

It is not believed that the Lakers share in any of Staples Center’s corporate sponsorships, parking or food and beverage revenues. They do profit from season ticket sales and a portion of the suites and premium tickets. They can also sell advertising around the court.

Beyond money, the painful experience of leaving the iconic Forum came into play while weighing staying at Staples.

“That was emotionally difficult for the fans,” Harris said. “Change is hard. We really were cognizant of not upsetting the fan base.”

Minto figures that, with a favorable lease, sticking around could be a smart move.

“Being the anchor tenant in downtown L.A., in what is now a very famous arena, is certainly great from a marketing perspective,” he said. “The amenities are there. Staples Center is not a relic.”

how-staples-lost-its-way | Babson College

Background

Attempting to copy the successful launches of Toys “R” Us and The Home Depot, the big-box office-supply industry was launched in 1986, when both Staples and Office Depot opened their first superstores. In 1987, Office Club was started in California. In early 1988, Kmart acquired OfficeMax, a small Cleveland-based office-supply startup. Unlike hardware/home improvement, the office-supply industry had many startups, but the industry consolidated rapidly into three major players.

Although they followed similar store strategies—large warehouse formats with wide range and everyday low prices—the three companies had very different cultures. Staples was led by Tom Stemberg, who brought extensive retail experience from supermarkets. Coming from low-margin food retailing, Stemberg was very focused on driving low costs and volume, with much emphasis on systems, logistics, and supplier relationships. From the beginning, Staples was a highly centralized and structured company focused on organic growth.

In contrast, Office Depot was founded by three entrepreneurs who previously had been involved in a startup home-improvement business that was sold. Sadly, one of the founders, Pat Sher, died a year after Office Depot’s founding. Sher was succeeded by Dave Fuente, who had formerly run Sherwin-Williams, a leading paint and home-decorating franchise business. Fuente’s background leading a relatively independent franchise organization resulted in a more decentralized governance model for Office Depot. From the beginning, this decentralization also spurred Office Depot to seek growth opportunities through acquisitions and international markets, including buying out Office Club and entering Canada in 1991.

OfficeMax was one of a number of initiatives by Kmart to diversify away from discount department stores into category killers by acquiring startups in different sectors (Builders Square, Pace Warehouse Clubs, Borders Books, and Sports Authority were other examples). However, Kmart’s growing problems in its core business resulted in underinvestment in the specialty big-box retailers, and they quickly fell behind. In the early 1990s, investors pressured and eventually forced out the Kmart chief executive responsible for the specialty-superstore strategy and demanded the spinoff of the chains. OfficeMax was sold off through a share offering in 1994.

The first decade of operation had allowed Staples, Office Depot, and OfficeMax to grow rapidly within their home regions. By the mid-1990s, the office-supply industry was dominated by these three businesses, each with distinct geographic profiles—Staples in the Northeast and Mid-Atlantic; Office Depot in the Southeast, Southwest, and California; and OfficeMax in the Midwest. The three companies had each opened more than 500 stores by 1996, although Office Depot’s revenues of $6.1 billion were larger than Staples’ $4 billion and far above OfficeMax’s sales of $3.2 billion. However, it was becoming increasingly clear that the next stage of growth would require entering the others’ home markets.

1996 Merger Proposal

In light of these developments, in September 1996 Staples sought to acquire Office Depot in a stock swap valued at $3.4 billion. The deal was immediately challenged by the Federal Trade Commission on the grounds that it would harm competition and raise prices in stores. The subsequent trial represented a landmark extension of the reach of antitrust policy in defining the market not as the product category (office supplies) but as the retail segment (office-supply superstores). The June 1997 judicial decision to block the merger had dramatic consequences for the evolution of the industry, especially for Office Depot. When the proposed acquisition was announced, Office Depot slowed its expansion and lost key executives who did not expect to be part of a combined organization.

When the government decision caused the deal to be scrapped, Office Depot embarked on an aggressive “catch up” growth plan. This initiative included relaunching its store expansion program, the acquisition of Viking Office Products in the commercial market, and licensing deals for Office Depot partner operations in a diverse array of countries, including France, Japan, Israel, Mexico, Poland, and Thailand. All of these changes resulted in weak results, especially compared to Staples. As a consequence, Office Depot endured a series of senior management changes between 2000 and 2005, which further weakened the company.

OfficeMax, which had been spun off by Kmart in the early 1990s, continued to struggle through the 1990s. Believing that the government would approve the Staples-Office Depot merger, OfficeMax had hoped to obtain multiple premier store locations if the government required divestitures in overlapping markets. When the merger was scrapped, OfficeMax again faced two much larger and stronger competitors. In 2003, OfficeMax agreed to be acquired by Boise Cascade, a paper producer, which then spun off its forest products operations and retained the OfficeMax name. With the legacy paper business, OfficeMax had become focused on its commercial contract business, which accounted for 52 percent of the company’s $9 billion in revenues. Also undergoing a series of leadership changes, the company began to close stores and emphasize commercial operations.

The Staples Boom, 1997–2007

In contrast to its competitors, when the FTC review was launched, Staples continued to grow rapidly. The company opened 170 new stores in 1996 and 1997. Staples also launched the new “Heartland” store format, which renovated stores to make them brighter, softer, and easier to shop for growing categories like furniture and technology. Staples’ growth had accelerated: It took seven years to reach $1 billion in revenues, only two more to double to $2 billion, and then doubled again in one year to $4 billion in sales.

As the store network grew into a nationwide footprint, Staples began to shift its strategy—from EDLP/value to more emphasis on widest range, as signaled by its new slogan “Yeah, We’ve Got That.” Staples added new categories; expanded services, especially print and copy; and shifted emphasis from small business to the home, school, and home-office segment. Staples redesigned their stores and renewed investment in information technology and the supply chain to drive greater productivity. Staples itself was becoming a retail company with substantial brand equity.

Despite the tech crash in 2000 and the 2001 recession, Staples continued its growth. Sales in 2002 were $11.6 billion, and the network topped 1,300 stores. The launch of staples.com in 1998 had been slow to build momentum, but by 2002 the online channel was transforming the North American commercial delivery and contract segment.

Staples also saw its first leadership change in 2002, as Tom Stemberg stepped down and was replaced by Ron Sargent as chief executive. Sargent began to shift Staples’ strategy from rapid growth toward greater efficiency and profitability. Sargent’s plan had four pillars: serve the small-business customer, drive profitable sales, improve operating margins, and increase asset productivity. This reorientation led to fewer store openings and a shift toward renovations and refurbishments. Staples also began work on its next-generation store format, which reduced the standard size from 24,000 to 20,000 square feet. This downsizing was accompanied by a narrowing of the merchandise offer, reducing SKU count by 750 and raising prices on 450 key lines. The margin goals also led to a full launch of Staples private label lines, hoping to achieve 20 percent of sales within a few years. By 2007, Staples had shifted from an EDLP value retailer to a hi-low promotional business, reinforced by a loyalty program (Staples Rewards).

By the beginning of the U.S. economic recession in 2007–2008, Staples had extended its position as the leading office-supply retailer. In 2007, Staples’ sales of $19.4 billion were 25 percent higher than Office Depot’s $15.5 billion and more than double OfficeMax’s $9.1 billion. Staples also had much higher profitability and productivity. Staples’ 5.1% return on sales was twice that of Office Depot and OfficeMax. Staples’ network of 2,038 stores was pulling away from Office Depot’s 1,670 locations and OfficeMax’s 981 stores. Staples also had a very strong balance sheet, with only $342 million of long-term debt compared to $607 million for Office Depot and a staggering $1.8 billion for OfficeMax. As a consequence, Staples’ market capitalization of $15.3 billion was four times greater than that of Office Depot and 10 times greater than that of OfficeMax.

Reversal of Fortunes

Staples then embarked on a series of major strategic decisions that had dramatic negative consequences for the company. Staples had made minor forays into international markets with European, Chinese, and Indian operations. But faced with a softening U.S. economy in late 2007, senior management sought to expand Staples’ international presence as rapidly as possible. In February 2008, the company launched an unsolicited bid for Corporate Express, one of the world’s largest office-product wholesalers. Netherlands-based Corporate Express, with extensive European operations, had been under pressure from private-equity investors and hedge funds to put itself up for sale. Staples’ initial offer of 7.25 euros per share represented a 67 percent premium to Corporate Express’ prior share price. However, Corporate Express rejected the offer, saying it undervalued the company. Staples then raised its offer in two stages to 9.25 euros per share, representing an 85 percent premium and a deal value of 1.7 billion euros ($2.3 billion). Staples also agreed to assume $1.7 billion of Corporate Express debt. Including the debt financing of the deal, Staples’ total debt went from $350 million in 2007 to more than $4 billion by November 2008, with $2.94 billion of that amount due for payment or refinancing within a year. The debt also was very expensive, with interest rates as high as 9.75 percent. With the global financial crisis exploding in September 2008, Staples’ debt-financed deal came at the worst possible time.

The company attempted to put a positive spin on the acquisition, despite the high price and the accompanying leverage. Ron Sargent, chairman and chief executive of Staples, said at the time, “We’re going to go from a company where retail is about 60 percent of our sales to a company where commercial delivery is about 60 percent of our sales. That is really transformational. . . . I think the paper clip wars are over, and it’s a win for both sides.”1

The Corporate Express acquisition transformed Staples into a company with three significant business units. North American Retail (which comprised 56 percent of sales in 2005) had grown to $9.4 billion in sales by 2009, but had just been passed by the North American Delivery business in revenues. Both North American units had operating profits of 8.3 percent of sales. In contrast, the Corporate Express deal almost doubled Staples’ international business to $5.3 billion in revenues, but with a paltry 2.3 percent operating margin.

The 2008–2011 period proved to be tough going. Because of the U.S. recession, North American revenues essentially were flat, with Staples’ slight revenue growth coming mainly by taking share from Office Depot and OfficeMax. Staples’ international businesses lost almost a half billion dollars in revenues and saw a reversal from profits to significant losses. Staples also slowed store openings and shifted its strategy from reinvesting in the business to distributing operating cash flow to shareholders through dividends and share repurchases. Prior to the recession, Staples’ capital expenditures had averaged $500–$600 million annually. From 2008 to 2011, capital investments of just under $1.5 billion were only a half of the $2.9 billion spent on dividends and buybacks.

By 2012, despite a recovering economy, Staples was continuing to struggle. Revenues declined from $24.7 billion to $24.4 billion, the first full-year decline in company history. Operating profit dropped from $1.6 billion in 2011 to $500 million in 2012. Staples also suffered its first-ever net loss as a public company of $211 million—a reversal of $1.2 billion from the year before. The restructuring included more than $1 billion of impairments and write-offs of goodwill. The company further reduced capital expenditures but boosted its dividends and spent $767 million on dividends and repurchases. Despite these distributions, Staples’ stock price continued to fall. From 2008 to 2013, Staples stock declined 37 percent, compared to a 21 percent increase in the overall market and a 97 percent increase in the Standard & Poor’s retail index.

In the wake of this performance, Staples announced an aggressive cost-cutting program, aimed at saving $250 million annually and further reducing store count by 15 percent across the United States and Europe. The company also announced a dramatic shift in its merchandise strategy away from office supplies toward general merchandise, under the tag line “Every product your business needs to succeed.” The cover of Staples’ 2012 annual report showed an array of products, including hammers, stethoscopes, drills, vaporizers, and kitchen blenders. Both the online business and the stores dramatically reduced both width and depth of their traditional office-supply categories, spurring declines in customer-satisfaction scores without offsetting new business.

By 2014, Staples’ attempt to reinvent the company with a general merchandising strategy was failing. More than 300 stores were closed, and revenues had fallen by $2 billion since 2012. Return on sales was only 0.6%. Gross margins had fallen from 27.1 percent to 25.8 percent, with declining average selling prices as well. Performance worsened across the entire business: traffic was down 1 percent, basket size down 4 percent, overall sales down 2.7 percent, and same-store sales down 4 percent. Another 169 stores were closed, and an additional $469 million worth of impairments was taken. The shift in merchandise strategy was not matched by investment in the business—dividends and repurchases were 50 percent greater than capital expenditures. Staples had clearly decided that its future was no longer in stores, and no longer in office supplies.

However, Staples’ “reinvention” was completely turned upside down with the announcement in February 2015 that the company proposed to buy Office Depot for $6.3 billion, a 44 percent premium to Office Depot’s prior closing price, and a 65 percent premium over the average price in the prior quarter. (Acquisition premiums typically average 20­ to 30 percent.)

It is near-impossible to understand why Staples was interested in acquiring Office Depot. Both Office Depot and OfficeMax struggled during the financial crisis and recession, losing share to Staples and undergoing repeated restructurings and management changes. Office Depot had gone from $15.5 billion in revenues and almost $400 million in profits in 2007 to 2013 sales of $10.6 billion and barely breaking even. OfficeMax had a similar experience, with sales falling from $9.1 billion to $6.9 billion and profits falling from $207 million to $70 million in profits. Office Depot’s stock price had fallen from $39 per share in 2007 to $3 per share in 2013; OfficeMax fell from $55 per share to $7 per share over the same period.

Weak performance was exacerbated by weak balance sheets. Office Depot had $350 million worth of convertible preferred stock with an 8.5 percent yield held by BC Partners, a private-equity hedge fund; OfficeMax had over $1 billion in long-term debt. Starboard Value, another hedge fund, had taken a stake in Office Depot and then sought to merge with OfficeMax in a merger of equals. Each OfficeMax shareholder received 2.69 shares of Office Depot stock, about a 50 percent premium to prior trading. The deal was completed with the hope of creating a combined company of 2,200 stores, with revenues of $17 billion. But merger integration proved to be a challenge, with cost savings being swamped by restructuring costs and the closing of 400 stores. Conflicts arose over who would be the CEO, where combined headquarters would be located, and what the name of the combined company would be (the name they settled on was Office Depot Office Max!). A year after the deal, combined revenues were down to $16.1 billion with a net loss of $312 million. An additional 300 stores were slated for closure.

Given this bleak performance and outlook, it hard to understand why Staples wanted to acquire Office Depot, let alone why they offered such a huge buyout premium. Even Ron Sargent, Staples’ CEO, seemed confused in his letter to shareholders in the 2014 annual report, writing (italics added):

The progress on our strategic reinvention is a result of the strength, experience, and persistence of Staples’ management team and board of directors. We’re responding to the changing needs of customers, aggressively reducing expenses, and competing with a much wider set of competitors in categories beyond office supplies.While we’re right on track with our reinvention, we also remain committed to carefully considering other strategic options. In early 2015, we announced the acquisition of Office Depot. We believe that the acquisition will create significant value for our shareholders and our customers. It will better position us to accelerate our reinvention and more effectively compete with a wide range of competitors in a range of categories beyond office supplies.2

The situation became even more confused when the U.S. Federal Trade Commission sought to block the deal on the grounds that the two companies had a dominant share of the commercial contract business for office supplies. After many delays and extensions, the case moved to trial in late 2015. The markets became increasingly pessimistic that the proposed deal would be completed; Office Depot began to trade well below the bid price. Moreover, the core businesses continued to erode. In early 2016, Staples reported that 2015 revenues were down $1.4 billion from 2014, while Office Depot reported revenues of $14.5 billion, down $1.6 billion from a year earlier.

Faced with faltering businesses and a premium-priced deal, Staples then stunned the investment community when it chose not to present any defense of the proposed merger to the court, saying the government’s case was woefully lacking and a defense was unnecessary. On May 10, 2016, the judge then upheld the government blocking of the deal, noting his surprise at Staples’ unwillingness to provide any justification.

Cynical commentators believed that Staples was trying to get out of the deal, but in any case, it proved extremely costly. After the court decision, Staples stock fell 19 percent and Office Depot stock 37 percent. The combined market capitalization of Staples and Office Depot by mid-2016 was half of that of Staples alone in 2007. Staples had to pay Office Depot a $250 million breakup fee and announced it would proceed with more cost cuts and the sale of its European operations. Three weeks later, Ron Sargent resigned after 26 years with the company and 15 as CEO. Clearly in search of a new strategy, Staples’ board announced it would begin an open and external search for a new leader. In August 2016, Roland Smith announced his retirement as CEO of Office Depot Office Max, with a search for an external candidate as well. By August 2016, the two US office supply giants were looking for new leaders and new strategies.

Lessons

  1. Staples’ strategic position began to erode when it moved away from an EDLP value strategy toward one reliant on widest range and convenient locations. New competitors, both digital (Amazon) and brick and mortar (Walmart), eventually were able to claim price leadership—which became critical in the recessionary economy.
  2. When your historical competition is weakening, you can overestimate the strength of your own competitive position. As the recession worsened, Staples’ results were bolstered by the problems at Office Depot and OfficeMax.
  3. Like the department stores, Staples tried to serve different segments of the market with a “one size fits all” strategy. This created opportunities for specialist competitors or broadline competitors with differentiated strategies (Amazon Business/Amazon Prime/Amazon).
  4. Staples gave up on stores, despite having over 2,000 locations. The lack of investment and the reductions in merchandise width and depth discouraged customers and employees. The hi-low pricing with rebates through the loyalty program made it hard to figure out price/value. Customer service worsened, reinforcing this downward spiral.
  5. Staples’ 2012 shift toward general merchandise worsened its competitive position—the U.S. market did not need or want another general merchant trying to offer convenience. This was especially true given Staples’ hi-low pricing and constant promotions.
  6. Staples’ decision to acquire Office Depot was a complete reversal of the actions the company had taken in the prior three years. While the prior strategy might be questioned, the sudden reversal suggests that senior management was not invested in either the old or the new plan.
  7. If you don’t have a strategy, someone will give you one. In recent years, private-equity groups have increasingly stepped in to force strategic decisions that too often are focused on short-term financial gain. In the office-supply industry, Starboard Value played a key role by taking investments in both Office Depot and Staples, and then agitating for deals. In some cases (like the Office Depot-OfficeMax merger), negotiations between private-equity groups can drive dealmaking.
  8. Acquisitions often become the default strategy. Yet acquisition strategy remains one of the least developed skills in retailing. In the office-supply industry, deals were repeatedly done at extreme premiums and worsened by a reliance on debt financing. This is especially problematic when the merging companies are experiencing weakening performance and are seeking consolidation.

References

  1.  http://shares.telegraph.co.uk/news/article.php?id=3031194&archive=1&epic=SPLS
  2. Staples 2014 annual report and 10-K, available at http://investor.staples.com/phoenix.zhtml?c=96244&p=irol-reportsannual

Staples Scanning Cost – Scanning Services

People need to get documents scanned for a variety of reasons. Because more and more people are getting rid of their scanners, printers and fax machines, it could be difficult to know where to get scanning services completed. When it comes to unique or large scanning jobs, a free scanning app on your phone won’t be enough. When you need professional services to help you with scanning, you will need to find which local companies offer scanning services to their customers. Below are some businesses you can check out in your area to get your documents scanned quickly and easily. To get an idea of Staples scanning cost and more, contact each business separately because most prices are not listed online.

Scanning Services Offered By Shipping Stores and Cost

1. FedEx

Most FedEx stores have employees and self-service kiosks to help with scanning documents. The company has more than 1,800 locations to choose from, and there may be one in your area to visit.

Scanning Costs – Using the self-service kiosk will cost $0.45 per minute to scan and can be sent to you via email. To have an employee scan your documents for you will cost $0.89 per page and they will put it on a CD or thumb drive.

Documents that are larger than a standard size sheet of paper will need to be scanned by an employee. For more information and to find a FedEx location near you, visit their website.

2. UPS

Each UPS location is a franchise that is individually owned and will have different services and prices offered.

Scanning Costs – Most locations will charge around $5 to scan up to 10 pages. If the document is up to a hundred pages, it may cost between $10 and $30 if it is a single scanning job. These costs were an average of different locations that were called.

Office Supply Stores Offering Scanning
Services To Customers

3. OfficeMax/Office Depot

Office Depot is the largest office supply chain in the world and includes its OfficeMax stores.

Scanning Costs – Scanning your documents will cost $2.99 for the first page and an additional $0.25 per page after. If you sign up for their rewards program, you will get 10% back whenever you use scanning services.

4. Staples

Staples offers its customers a self-service kiosk to scan your documents, but you need to have a debit or credit card to use them. Staples scanning cost $0.50 per page.

5. Hotels

If you have hotels in your area, many of
them have business centers that guests can use. Small documents may be able to
be scanned at the front desk. Even if you are not a guest of the hotel, it may
be worth asking for help.

6. Libraries

Libraries are a great place to get
documents scanned. If you have a library card and no outstanding fees, you may
be able to get help scanning small documents. Many public libraries charge
small fees around $0.10 per page, but it is best to call your library
beforehand to find out the actual fees they charge.

7. Travel Agencies

While you are on the road traveling, travel
agencies often have access to printers and scanners and might help you out if
you ask.

Free Smartphone Apps To Scan Documents

8. CamScanner

CamScanner is a free application you can
download on your phone to take pictures of your documents and get them
translated into PDFs. They can then be saved on your phone or emailed to
yourself or other people. This app is available for Androids and iPhones.

9. Evernote

This is a productivity application that
allows you to take pictures of images and documents and turn them into PDFs
that can be saved, stored in the cloud or sent to an email address. This
application is also available for Androids and iPhones.

10. Genius Scan

This application is free to use and allows
you to scan multiple pages at a time. This app uses perspective correction to
help you get the best looking scans possible. Genius Scan is only available to
iPhone users.

To Summarize

It can be stressful to find a place to get your documents scanned. We answered your question about Staples scanning cost but use this list to find a store or location in your area that will scan your documents at an affordable price.

Staples may be struggling, but it will always have its name on Staples Center

Office supply chain Staples announced today it’s closing up to 225 stores across the country in an effort to save $500 million.  That news got us wondering: when the company is under that kind of pressure, couldn’t it just sell off the naming rights to Staples Center?  That move, however, would actually be pretty tough.  

“We actually were the first lifetime naming rights extension for a major market arena,” said Michael Roth, Vice President of Communications for AEG, which owns Staples Center.

Before the arena was even built, the two companies signed a 20-year deal in 1997 reportedly worth close to $120 million. In 2009, they extended that deal into perpetuity.

“So as long as we have a sports and entertainment arena that’s located on the corner of Figueroa Street and Chick Hearn Court, the arena will be referred to as Staples Center,” Roth told KPCC.

He wouldn’t comment on specific provisions of the contract, like what happens if Staples goes bad or bankrupt. But E.J. Narcise of Maryland-based sports marketing firm Team Services says those provisions have to exist.  

“You’ll remember a little company by the name of Enron,” Narcise said. 

His company was involved when Enron put its name on the Houston Astros’ stadium, and there again when that deal had to be “wound down.”  Staples is nowhere near that point. Plus, Narcise said Staples has gotten too much value out of the naming rights of Staples Center. 

“It’s by far one of the most renowned buildings from a naming rights standpoint probably since Wrigley Field,” Narcise said. “This has become an icon for Staples.  They would have to close their doors and lock them tight before they would pull their name off of that building.”

But if it came to that, Narcise suspects the deal wouldn’t give Staples power to sell the naming rights to another company. 

 

 

 

90,000 About creating demanded products | by Mike Rudenko | Service Design Bureau

Today the word “marketing” is still traditionally considered synonymous with product distribution. When a business owner comes to a marketer or an agency, it somehow by itself implies that the product is already there and it only remains to sell it correctly; that the owner perfectly understands and can clearly explain what he sells , how his product is useful to consumers and how it is better than competitors’ products.The marketer can only “pack” these thoughts into a “selling text”, “selling site”, or “selling commercial proposal”.

At the same time, the issues of some more or less systemic creation of this very consumer value traditionally remain in the shadows. This huge scope of work takes place within the company and is hidden from prying eyes. And it turns out that the owners or top managers – those who are globally responsible for the success of the product and business – are left face to face with a whole range of problems.How do you recognize your strengths? How do you translate them into a product? How to find your target audience? How to make a product attractive to her and protect it from being copied by competitors? From here, the difficulties with USP and positioning grow, because they are the consequences of a well-formed value. Marketers usually cannot offer a systemic solution, limiting themselves to “creative” or banal borrowing. However, it is imperative to solve these problems in a systematic way: after all, even if one day managed to create a product based on business intuition or luck, it still needs to be constantly developed so as not to be an outsider in the market, which is now copying value propositions like never before.

And it turns out that the task of product managers is to make proactive value development one of the key processes in the organization. It is he who will be the very competitive barrier: while others hold on to a result that accidentally turned out to be so successful, new market leaders are constantly developing, surprising and delighting their consumers, raising and raising the bar for quality.

In this article, we will talk about an approach that allows you to start such a process and systematically create demanded products.We have tested it on ourselves and are successfully using it in client projects. It is suitable both for startups creating completely new market offerings and for classic businesses that find it difficult to differentiate themselves from competitors and create a secure market position.

Schematically it looks like this:

Let’s start to disassemble this scheme from the description of the language spoken by the project teams.

If in a company people seem to be talking about the same thing, but in different words, this is a problem.A lot of ideas die in meetings, negotiations and disputes because people do not understand each other. Unambiguity and accuracy of wording is the basis for fast and productive work in any area. It is no coincidence that at high-risk facilities, where accuracy of understanding is critical, new employees are taught a special slang that excludes double interpretation.

But it is not enough to learn to speak one language. You need to learn to speak correct language. On the one that best suits the task.For example, in mathematics there is a special quantifier language that reflects mathematical logic and allows you to very compactly and unambiguously write statements that would take several sentences in a common language. And, for example, it is better to talk about music, art and food in Italian because of its abundance of metaphors that convey the subtlest shades of emotions.

It is convenient to use the visual language of Osterwalder’s business models and value propositions to create products. We already wrote about it:

In addition to mutual understanding, there is another important benefit of a special language.It is explained by the Hypothesis of linguistic relativity, also known as the Sapir – Whorf Hypothesis. It states, in its strict interpretation, that

Language defines thinking, and, accordingly, linguistic categories limit and define cognitive categories.

This means that we think with the concepts that are in our language. And we do not think with those who do not exist. And if we want to learn how to manage the value and demand for our products, we must first learn to think in products.Osterwalder is perfect for this: firstly, the product is at the center of its business model, which in itself sets up a “product-centric” look, and secondly, the product and the customer unfolds into an understandable value proposition template.

Business Model and Value Proposition Templates

So, establishing a common language is the very first step towards creating a sought-after product. In practice, it is enough for the whole team to draw up several value propositions and business models of well-known companies.

Resume:

  • For communication in the product development project team, it is better to use the language of Osterwalder’s business models and value propositions.

Developing value in a company is always a path of change. Consumer preferences and requirements are changing, there is a migration of value, and many just yesterday mass business models go into niches or even become irrelevant. In order not to lose position, companies have to 90,003 anticipate the desires of their consumers, and not just react to the already formed demand, as before.It is no longer enough to simply meet needs better than the competition. It is necessary to rethink needs, offering new experiences to meet them. To be not “better than competitors”, but “differently than competitors”.

Companies come to this in different ways. Someone immediately realizes the need for constant product improvement, and someone thinks about it after some kind of shake-up: a competitor has released a strong solution, a key customer has left, a technological breakthrough has occurred, or a regulator has introduced a new norm.But whatever the reason, it’s important to understand that change is forever. For a stable life, it is not necessary to find and implement one successful solution more than once, but to learn to constantly live in changes, manage them, and make product improvement an organic process within the company. Such is the paradox: a company that is constantly changing is more stable than one that tries with all its might to maintain its unchanged. Therefore, it is important to remember that at each moment we are developing not the final , but the next state of our product.And after it there is another , the next , and so on.

And the first thing we need on this path is a correctly chosen starting point.

The starting point is the business model that describes the company and its product at the time that change begins. It is important to fix it before the start in order, on the one hand, to find “bottlenecks” in it, and not drag them into a new product, and on the other, not to lose key competencies and strengths of the company itself, which need to be preserved and developed in a future product. …

Building the starting point begins by filling out the business model template. We ask the owner or top manager to fill in each block of the business model as he sees the company now, with all its pros and cons. This will be a draft, which we will then verify. Verification is necessary because managers tend to be biased about their business models – immersion and personal involvement, which end up with a distorted picture, affects. Therefore, we check and prove with facts every block of the business model that is responsible for demand: product, customer segment, distribution channels and customer relations.

Verification of relevance and search for key competencies

We check the value proposition using a test purchase. In the process, we arrange a stress test in order to actually confirm or deny the values ​​that are declared. For example, if a company says that polite and caring customer support is their advantage, we put on a show with a highly outraged user. If the technical support has coped, we consider the value proposition confirmed.

We check client segments by interviews with current and past clients.We ask why they chose the product, what is their experience of using it and what difficulties they face. We ask the departed why and where they left. After these interviews, we understand well the motives of current consumers, their problems and expectations.

To verify relationships and channels, we look at whether the sales cycle is logical, whether the advertising messages accurately reflect the value proposition, whether they are focused on the pains and expectations of consumers (we already know them), whether there are conversion errors on sites or other materials.The same goes for the work of sales managers. We are interested in the logic of product presentations, communicating a value proposition, working with fears and doubts. We also pay attention to whether the company has CRM and how carefully it is conducted.

Another way to explore the relationship a company has with its customers is to check out technical support. How quickly they respond to user requests, whether they want to genuinely help the client or are they formal.

As a result, we get an objective picture of how the company looks from the inside (from the point of view of managers) and from the outside (from the point of view of the market and customers).

Diagnostic card

Summary:

  • First, we put together a model of the current state of the business and make sure that it is as objective as possible;
  • From the model, we highlight bottlenecks and key competencies. We fix bottlenecks, we develop competencies.

Once the starting point is assembled and validated, we begin to create the target point – the image of our new product and business model.

In business modeling, it is customary to distinguish four epicenters of innovation: resources, finance, product and consumer.But since we specialize in creating products, then in this article we will take a closer look at the last two cases. These are collectively called value proposition innovations.

Value Proposition Innovation Scheme

Future Consumers of the Product

Steve Blanc’s classic customer development postulates that no one except the customer knows what he (the customer) needs. And the owner of the product can only ask him about it correctly and make a product according to his requests. The problem is, it’s so easy to blame the consumer for the failure of your product.In fact, the consumer does not know how to design products. And he, oddly enough, rarely understands what he really needs. The maximum that the consumer can do for you is to tell about symptoms of his problems and demonstrate how he is solving these problems now. You will have to draw conclusions from this data yourself. Therefore, we observe rather than ask. Our main goal is to immerse ourselves as deeply as possible in the life of the client in order to

to predict what the consumer will need in the future.

While studying the customer, we fill out the customer profile template. It consists of Jobs, Gains and Pains blocks. Thus, it is important for us what the consumer is doing, what he wants to achieve and what problems he is experiencing.

Typically, when people fill out a template for the first time, obvious goals, problems and benefits come to mind. All of them, one way or another, have already been solved by competitors, and it is not clear what to do with them. Because of this, by the way, many are disappointed in Osterwalder’s patterns.Say, the products on it are superficial. But the important thing to remember here is that templates are a language. And in any language it is not enough to know the letters – you also need to learn to speak words, write sentences. And the mastery of language is determined not by the ability to speak platitudes, but by the ability to write masterpieces. It is the same here: if you describe a template superficially, there will be a superficial product. You deeply study the consumer – the product will be unique. Therefore, we are looking for non-obvious and deep problems of the client. Those that exist, but do not come to mind with a superficial analysis.

There are several hacks to solve this problem:

  • Basic brainstorming with trigger questions. Suitable for obtaining primary hypotheses of objectives, benefits, and problems. We will check them in interviews and experiments.
  • The “5 why” approach, where you go from obvious problems to deeper ones, constantly asking “why?” For example, you know that an entrepreneur is losing customers. Why are they leaving? Because they are dissatisfied with the service. Why are you dissatisfied? Because the sellers are rude.Why are sellers being rude? Because they don’t understand how to handle a client. This problem can already be solved.
  • Customer segmentation and in-depth study of segment-specific objectives, goals and issues. For example, by choosing young men as a segment of beauty services consumers, you can create a niche offer – a barbershop.
  • Analysis of experience of consumption of competing products and identification of barriers and side effects. In the same barbershops, some clients are uncomfortable with close contact with another man.Therefore, barbershops begin to appear, where girls cut their clients’ hair.
  • Analysis of the experience of consumption in other markets, for example foreign ones, and scenario planning. Many business models, which are now at the peak of popularity, have already evolved abroad and have given rise to new consumer problems. The paths that these business models have taken can be explored.

Each of these methods provides a set of consumer hypotheses. But the hypotheses still need to be confirmed. There are two approaches for this:

  • Problem interview, in which we ask the user specific questions.Analyzing what and how the user answers, we can conclude whether the hypothesis was confirmed.
  • Experiments on prototypes. Some hypotheses cannot be tested in interviews. People can say one thing, but behave very differently in life. We test such hypotheses by experiments. For example, we introduce test functionality for a small group of users or give a demo sample for trial.

Summary :

  • Building a new value proposition usually starts with the customer segment;
  • The customer segment is filled with tasks, problems and benefits;
  • The challenge is to find significant problems and benefits;
  • Hypotheses need to be confirmed in practice.

New Product Design – From Template to Prototype

After the customer segment template is assembled and validated, we begin to design the value proposition. To do this, we describe the properties of the future product that allow it to solve the problems of our client segment and help it achieve benefits.

When creating properties, we ask ourselves the question:

  • What feature of the product can solve this consumer problem?
  • How can this be done? What resources will it require?
  • How difficult will this feature be for competitors to replicate?

Product Features are collected on the left side of the value proposition canvas in the Gains Creators and Pain Relievers blocks.Taken together, they constitute the Marketing Requirement Document (MRD) – the core set of product requirements that will guide development and further sales marketing.

Build a Value Proposition

As with the customer segment, we are moving from a broad vision to a deep focus. And if a general view is quite possible to get on brainstorming, then for a detailed study of the product’s features, hacks are required:

  • Cocreation sessions. These are the events that we hold together with the consumers of the future product.Usually it is not difficult to find them – we have already communicated with many of them before in problematic interviews. So when we get to the product requirements, we already have a list of early evangelists who are happy to get involved in the process and work with us. In sessions, products are created together with consumers. There are so-called “innovative games” that help people create a vision for the ideal product. They were popularized by Luc Hohmann in his book Innovation Games. The main difference between these sessions and problem interviews is that in interviews we talk about the client without touching on the product.At the session, it is important to rely on already known experience and create products together.
  • Analysis of solutions from other markets. This hack is more commonly known as industrial espionage. Yes, commonplace analytics of other people’s decisions. But, of course, we use it as a basis for improvement, and not just copy it.

When building a value proposition, it is important to match the product and the customer segment. As a reminder, we already have a described and verified client profile containing problems and benefits.We check if our value proposition solves these problems and helps to achieve benefits. There are nuances here. For example, if the problem sounds like “there is not enough knowledge to promote the business,” then the solution to this problem will be training, and not a service for promotion.

This is called a problem-solution fit.

Problem-Solution Fit

Once the fit on paper is achieved, the product begins to take shape in early prototypes. These are well-rendered or partially realized parts of the product.They allow you to translate an abstract template into something tangible and test it on real people. For digital products, these can be pre-order landing pages or applications with reduced functionality. For real products – presentations, engineering prototypes, demo samples. The main thing is that the prototype implements the product features that we have assembled into a value proposition. Prototyping is critical because the value proposition must be proven or the consumer will feel cheated.Therefore, on prototypes, the company first of all learns to implement its promises in practice.

Prototyping Value Proposition

This phase is somewhat similar to the MVP release, but it is not yet. Prototypes don’t go to market, they are tested on a small group of people who agree to it. These people are well aware that they are holding in their hands not a finished product, but just a prototype. And their task is to try it and give feedback on how the product solved their problem, is it clear, is it convenient to use it.This stage is called prototype testing.

After several cycles of prototype testing, the product finally hits the market. This is already the MVP – the first version of the product. It has a proven track record of value, and does not look like the cheap, knee-length craft that startups use to test the market. Yes, the product is not perfect yet, but this imperfection is visible when comparing the product with its future versions. We have not realized all the potential that we could have, many features are still planned, but the product that has entered the market already has a compelling reason to buy it.

Once the MVP starts selling, product-market fit is achieved.

Product-Market Fit

A formulated value proposition is an important artifact. It comes in handy when you need to set a task for marketing contractors or when you need to quickly explain to a new employee what the company is working for. It is convenient to store it as a long pitch. It is such a special one-page document that describes the target audience, the problem, the solution and the proof of the solution.You can download our long pitch template and use it however you like.

Executive Summary :

  • Product Features Must Match Customer Segment Challenges and Benefits
  • Once matched on paper, product is implemented in early prototypes and validated with real customers for feedback.
  • Based on feedback, prototypes are finalized (there can be several such iterations), after which the first version of the product – MVP – is released to the market.
  • The value proposition is framed in a Long Pitch document that identifies customers, problems, solutions and evidence.

90,000 Business center owners are competing in originality – Rossiyskaya Gazeta

The vacancy rate for Class A office space has decreased from 12.5% ​​to 11.7% since the beginning of the year and continues to fall. There is already a serious shortage of high-quality offices in the center of Moscow, and this trend will continue throughout 2013. These are the conclusions reached by analysts at Knight Frank.

But, despite the growing shortage of space, tenants of expensive offices are in no hurry to conclude lease agreements with the first owner they come across. They are still discerning and strive to get their hands on a high-end office at an affordable price. Green buildings and offices with an extended range of additional services are becoming more and more popular. In addition, the status and sphere of activity of office neighbors are equally important to tenants of high-class premises.

While 5-10 years ago Moscow business centers tried to be no different from each other, today competition dictates different rules.To attract tenants, developers simply need to surprise them. The rating of the “chips” used by the capital’s business centers was compiled by the analysts of the “Promsvyaznedvizhimost” company.

In the first place were cafes and restaurants, which have long become not just a bonus, but an obligatory component of a modern business center (BC).

“One of our projects provides for a varied catering infrastructure, from a corporate canteen to one of the most expensive restaurants in Moscow,” says Anna Dvurechenskaya, commercial director of KR Properties.“With the help of this, we tried to give tenants the opportunity to be in the quarter from morning to evening. There are many options where you can have breakfast in the morning and have a business meeting in a formal or informal setting in the afternoon. You can also dine with colleagues in establishments with different budgets, buy takeaway food, and watch a match in the evening and drink a beer or have a full dinner while waiting out the traffic jams. On Friday you can go to the bar to dance or have some good wine. “

The same obligatory “dopas” as food outlets include a pharmacy, a flower shop and ATMs.But cultural institutions – museums and exhibition halls – are not just original additions to a fashionable business center, they speak about the tastes and preferences of the owner of the office building. It is noteworthy that the cultural component shared the first place with the necessary household infrastructure.

For example, the Stanislavsky Factory has its own theater, and the Novospassky Dvor opened the Institute of Russian Realistic Art with a working exhibition of paintings and sculptures of the 20th century.The Business Center “Museum of Technology” is located directly above the Museum of Technology of Vadim Zadorozhny, which allows the business center to use its original name to attract tenants.

But if a business center has, for example, a theater, then this is not just a whim of the tenant or owner. This neighborhood is due to restrictions on the part of local authorities. The premises occupied by the theater are part of the city.

Moscow loft-style art clusters generally prefer to focus only on art tenants who regularly organize events related to contemporary art.This attracts the metropolitan creative bohemia and creates an appropriate image for the business center.

“A separate group of additional services should highlight the image components aimed at maintaining the loyalty of tenants, creating a name and recognition,” says Andrey Kirilkin, head of the appraisal projects of the PSN Group. but will add value to the main office, retail or other areas of the project. “

The second place in the ranking was taken by “eco-chips”. The so-called “green” buildings are gaining more and more popularity. And this is not just a tribute to fashion, but the requirements of foreign tenants, for whom the environmental friendliness of the building is almost in the first place when choosing an office. A quality business center cannot be imagined without the use of green technologies. This is not only a fashion statement, but also a way to optimize building maintenance costs. In addition, more and more international companies, when choosing an office in Moscow, require a “green” building passport.

“For Europeans, the key to green technologies is the ability to conserve natural resources that are in short supply,” says Michael Bartley, Development Director at Four Squares. . For them, it’s a way of life, both at home and in the office. ”

And if for foreigners the benefits of “green” technologies are obvious, then in Russia, where natural resources are abundant, no one is used to saving, for example, water and electricity.Therefore, the use of such strategies will be adequately perceived by the tenant only if it is beneficial from an economic point of view.

“If you are thinking of improving the energy efficiency of a building, you need to discuss this issue with tenants, they should support you in such an endeavor, because only joint work will have an effect,” Michael Bartley warns. then the daily little things, which in the aggregate will have a noticeable economic effect. “

Experts say that almost any building can be made energy efficient, but it is more rational to lay down the possibility of installing energy-saving systems and equipment at the planning stage. In addition, the design of the building itself can seriously affect its efficiency.

“Energy efficient buildings are one of the most comfortable,” says Maxim Kobert, deputy head of the design department at BPS BAU. “Owners of such properties do not even have to provide tenants with bonuses and discounts.As a rule, tenants value such a place and are happy to be there. “However, not all office owners are ready to completely reconstruct their property according to” green “standards. station for electric and hybrid vehicles.

A person spends most of the day at work. As a result, the owners of business centers try to make the office building as comfortable as possible not only for work, but also for recreation.From here, fitness centers and beauty salons, as well as SPA rooms and cosmetology clinics are becoming increasingly popular. Such additional services won bronze in the ranking. Such innovations undoubtedly increase the loyalty of tenants, especially in combination with special discounts that such companies provide “for their own”.

However, you have to pay for the pleasure. Often, the presence of a fitness center or SPA-salon increases the cost of renting a square meter in a business center.Such a neighborhood is costly not only for the tenant, but also for the owner himself, because such “dopas” do not always pay off or not immediately.

“It is necessary to understand that any original additional service, as a rule, brings incomes significantly less from the main area of ​​the project, if not unprofitable,” says Andrey Kirilkin. recognizability of the project and ensure an influx of public, but no more. ”

In addition to using additional services to attract tenants, owners often try to play on the history of the very place where the business center is located.The so-called “historical background” ranks fourth in the ranking. For example, the owners of loft-style buildings focus on the history of industrial enterprises that were previously located in the buildings of new business centers. A place “with history” is not only more prestigious than an ordinary office, even if it is of the highest standard, but also costs more.

“Additional services are often used as gifts for tenants, but if you are a good negotiator, you can always sell them,” says Anna Dvurechenskaya, commercial director of KR Properties.“For example, the same sign on the facade of a building with your ‘anchor’ logo can be good money.”

Tenants from the same industry attract each other, creating a cluster. But a more successful strategy would be to place companies from related industries, for example, media and fashion. This is good both for the tenants themselves, when they do not compete with each other, but cooperate, and for the owner of the business center.

“During the crisis, it is not individual companies that suffer, but entire industries, therefore, mono-tenants during an unstable economic situation can cause a real headache to the owner of the business center,” Anna Dvurechenskaya is sure.

What is a business plan: why is it needed and how to draw it up?

Section 1

In this section, write down:

  • organizational and legal form of the enterprise;
  • the names of managers and business owners and their contributions to the project;
  • location and equipment of the enterprise;
  • current financial performance and required investments.

If the business plan is drawn up by the owner of the new business, the financial
indicators will reflect current and future costs. If speech
is about an already existing business, at this point of the business plan you need
include information on revenue for the last 2-3 years (or less
period if the business is less than years old), gross and net profit,
operating costs, balance sheet.

When listing business owners, describe contributions of any kind:
ideas, software development, knowledge of secret
production technology. But be sure to evaluate non-monetary assets in
monetary equivalent. Let the estimate be not the most accurate, but
sober.

Telling about the location of the enterprise, give a description of the area,
where each of the objects is located (warehouse, office, store, bureau and
etc.): who lives in the area, how far from the center
cities, what kind of infrastructure is there. Inform how much the premises
equipped with everything you need, and plan to improve in the future.

90,000 from super-modern business centers to delectable minibars

One of the best hotels in Russia is confident that there are no trifles in the hotel business

The Shalyapin Palace Hotel is currently the first 4-star hotel in Kazan. Its advantages are indisputable: the status of an architectural monument, location in the very center of Kazan, 123 classic-style rooms, modern conference facilities and the Capella restaurant of European cuisine.Each season, the hotel develops and implements more and more efficient models of guest service, which is confirmed by its popularity among guests of the third capital and awarded in the field of quality of service.

We guarantee our guests safety, high level of service and reliability

Evgeniya Lodvigova, Vice President of the Association of Hoteliers and Restaurateurs of the Republic of Tatarstan, General Manager of the Shalyapin Palace Hotel, one of the most popular hotel chains in the Republic of Tatarstan, told BUSINESS Online »About the hotel’s innovations and the work of its employees.

– 2011 for the Shalyapin Palace Hotel was a year of innovations, as a result of which the hotel became even more cozy, comfortable and well-maintained. In the course of the renovations, the number of rooms was repaired, as well as the hotel’s material and technical base, taking into account modern technical achievements and the requirements of world standards. New LCD TVs were installed in all rooms, new beds were purchased, mattresses were updated and minibars were replaced with more modern and improved ones.

Changes and innovations have also affected the conference rooms of the hotel.A powerful new projector and a huge screen were installed in the Great Hall, which increased the quality of the congress services provided. All the halls were redecorated, tables and chairs were replaced, the climate control system was adjusted. The business center of the hotel purchased new equipment for conferences: microphones, stands, flip charts and a DVD player. At the same time, videoconferencing and simultaneous translation systems were improved. Thanks to the accumulated experience and competence of our employees, the quality of our services is growing every day.We guarantee our guests safety, high level of service and reliability.

High professionalism, responsiveness of our hotel staff and an individual approach to working with each guest at every stage of service ensure the maximum compliance of the provided level of service with the world standards of the hotel business. Thanks to this, in 2011, Shalyapin Palace Hotel took part in the competition for the award of the Government of the Republic of Tatarstan “For Quality” and received a special diploma for achievements in the field of quality.There are no trifles in the hotel business. To meet basic needs, and even more so to exceed guest expectations, every stroke is important, every link of the service system

Unique offers and best price guarantee

The reservation department is the link between the guest and the hotel. At this stage, a full information cycle takes place – from the presentation of the product to the confirmation of the room reservation and the guaranteed arrival.
The employees of this department have higher education, speak several languages, have diplomas in the field of psychology of guest service, which makes it possible to improve and ensure the proper level of communication standards.
We continuously monitor online marketing trends and are always ready to offer the most guest-friendly booking option.
One of the most relevant booking solutions today is online booking, both through the global Internet booking systems IDS and GDS, and through the booking module on the hotel’s website with unique offers and “best price guarantee”.

Correctly conduct a conversation even with the most difficult client

The face of the hotel is the reception and accommodation department – this is the staff that meets, serves and sees off guests.The impressions received from this first acquaintance largely shape the guests’ feedback on the quality of the hotel’s service as a whole.
The job responsibilities of the department employees, as well as the skills and knowledge required for their implementation, are determined by professional standards.

For this purpose, special training of front office workers is carried out: they are taught to properly conduct a conversation with the most difficult client, communicate on the phone, avoid unwanted gestures and postures, smile, and so on.

The manager of the reception and accommodation department must be able to offer the client additional services on time, book him a table in a restaurant, offer the best room, and reserve a room for the next visit when checking out.Guests are especially flattered when addressed by their last name rather than the number of the room they occupy. And these little things are important to apply every day.

Accommodate more than 500 guests at a time

The sales and marketing department is a kind of “general staff” of the hotel. After all, it is here that the strategies and tactics of promoting the hotel product are determined.

It is not easy to ensure the occupancy of two hotels with rooms capable of accommodating more than 500 guests at a time, at least 40-60 percent per month.

In addition to its own booking module, GDS and IDS booking systems, one of the main sales channels is personal sales, which make it possible to sell a real product in real time.

But whatever method of sales the department manager chooses, he must first of all satisfy all the needs and desires of the guest. And for this, the Shalyapin Palace Hotel has all the possibilities, there is an individual approach to each guest and flexible pricing.
We constantly conduct consumer value analysis, which is important when developing new promotions, special offers and other sales promotion activities.

BUSINESS Online

Help


Shalyapin Palace Hotel

420111, Kazan, Universitetskaya str., 7
tel .: +7 843 231 10 00
e-mail: [email protected]
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90,000 17 business models. Come up with a new one or use an old one? – SKB Kontur

What is a business model?

At its core, a business model is a description of how a business makes money.She explains how you create value for your customers at the right price.

The term “business model” became widespread with the advent of the personal computer and spreadsheets. These tools allow entrepreneurs to experiment, test, and at the same time plan costs and revenue streams. With the help of spreadsheets, entrepreneurs make quick changes to their business models and can immediately see how these changes can affect their business today and in the future.

The business model structure has three parts:

  1. Everything you need to do something: design, raw materials, production, labor, etc.
  2. Everything you need to sell a product: marketing, service delivery, promotion, sales.
  3. How and what the customer pays: pricing strategy, payment methods, payment terms, etc.

Obviously, a business model is simply a study of what costs and expenses you have and how much money you can charge for a product or service.

The essence of an effective business model is to receive more money from customers than is required to develop a product.

Various business models can improve any of these three components. You may be able to minimize your design and manufacturing costs. Or do you have the resources for more effective marketing and sales techniques. Are you ready to offer an innovative payment method for your customers?

Be that as it may, keep in mind: an effective strategy does not require a new business model; it is enough to spy on the existing one on the market.For example, most restaurants operate according to a standard business model, but each establishment focuses its strategy on a specific category of customers.

7 questions for evaluating a business model according to Osterwalder:

1. Switching cost

How difficult is it for consumers to switch to another company’s products or services?

2. Regular income

Does each sale require new efforts or does it provide some guarantee of subsequent sales and income?

3.Income and expenses

Do you receive income before or after the costs arise?

4. Revolutionary cost structure

Is your cost structure different and fundamentally better than your competitors?

5. Shifting work to other parties

Does your business model allow consumers and third parties to create value for your company for free?

6. Scalability

Can you grow easily without facing obstacles such as infrastructure, customer support, recruiting?

7.Competitive Immunity

Does the business model protect you well from the competition?

17 Most Common Business Models

The vast majority of companies use existing and proven business models, only improving them in order to find competitive advantages. Here is a list of business models that you can use to start a business.

1. Advertising

The advertising business model has been around for a long time and is becoming more original as the world moves from print to online.The basics of the model are built around creating content that people want to read or watch, and showing ads to their readers or viewers.

An advertising business model needs to meet the needs of two groups of customers: readers or viewers, and advertisers. Readers may or may not pay you, but advertisers certainly do. The advertising business model is sometimes combined with the crowdsourcing format, when the creation of content does not require monetary resources, since it is provided by users.

Examples : The New York Times, YouTube

2. Affiliate program

Affiliate business model is related to the advertising model, but has some specific features. Most often, the affiliate model uses links (they are embedded in the content), rather than visual advertisements that are easily identifiable.

For example, if you run a book review site, you can embed affiliate links for Ozon or other online bookstores in your reviews.If a visitor follows the link to buy a book, the partner will pay you a small commission for the sale.

Examples: Alpina Publisher, Ozon, Aviasales

3. Commission

Intermediary businesses connect buyers and sellers, thereby simplifying the transaction. They charge a fee for each transaction with either the buyer or the seller, and sometimes both.

One of the most common intermediary businesses is a real estate agency, but there are many other types of services.For example, some help construction companies find buyers.

Examples: real estate agencies, PR agencies, event companies, recruiting agencies

4. Customization

Some companies use existing products or services to complement them with elements that make each sale unique to a specific customer.

Think, for example, of special travel agents who book trips for wealthy clients.The customization also applies to products like Nike sneakers.

Examples: NIKEiD, “Custom shirt”, “Velocraft”

5. Crowdsourcing

If you manage to bring together a large number of people who provide your site with content, then you are using the crowdsourcing model. This business model is most often combined with an ad format to generate revenue, but there are many other variations on this model. For example, you can give designers the ability to design T-shirts and pay them a percentage of the sales.

Companies that try to solve complex problems often publicly disclose their problems for advice. Authors of successful solutions receive awards, and the company can use these tips to grow its business. The key to a successful crowdsourcing business is providing the “right” incentive to attract the “crowd”.

Examples : LiveJournal, YouTube, P&G Connect and Develop

6. Refusal of intermediaries

If you want to make a product and sell it in stores, then you have to work through intermediaries to get your product off the assembly line on the store shelf.

Working without a middleman assumes that you bypass everyone in the supply chain and sell goods directly to consumers. This allows you to reduce costs and build direct and honest customer relationships.

Examples: Casper, Dell

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7.Crushing

Instead of selling the entire product, you can only sell a portion of that product using a split business model.

One of the best examples of this business model is co-rental property where a group of people only owns part of a vacation home.

Examples : Disney Vacation Club, NetJets

8. Franchise

Franchising is especially common in the restaurant industry, but you can also often see examples of its implementation in all areas of services – from cleaning premises to recruiting agencies.

This business model involves selling the strategy for starting and running a successful business to someone else. Often, you also sell access to the brand and support services that help the new franchise owner successfully enter the market. Essentially, you are selling access to a successful business model that you have developed yourself.

Examples : Domino`s Pizza, McDonald’s, Subway, Shokoladnitsa

9. Freemium

This business model assumes that you provide a portion of your product or service for free and charge for additional options.

Freemium is not the same as a free trial, which gives customers access to a product or service for a limited period of time. The freemium model allows you to have free access to unlimited use of basic features and is only charged for customers who need additional functionality.

Examples : MailChimp, Evernote, LinkedIn, Lingualeo

10. Leasing

Leasing may seem like splitting up, but in reality these business models are very different.By crushing, you are selling constant access to a portion of something. On the other hand, leasing is similar to renting. With the expiration of the contract, the customer undertakes to return the product he is renting.

The leasing model is most often used for high-priced products, when customers cannot afford to buy, but they have access to rent the product for a certain period of time.

Examples: Uralpromleasing, LIAKON, ZEST

11. Low-touch

With a low-service business model, companies lower their prices by providing fewer services.One of the best examples of this type of business model is low-cost airlines and furniture retailers like IKEA. In both cases, the low-touch business model means that customers need to either purchase additional services or do something on their own to keep costs down.

Examples: IKEA, Ryan Air, Pobeda

12. Marketplace

Marketplaces allow sellers to list items for sale and provide customers with simple tools to contact sellers.

This business model allows you to generate revenue from a variety of sources, including buyer or seller fees for a successful transaction, value-added services to help advertise the seller’s products, and more. The model can be used for both products and services.

Examples: eBay, Airbnb, Craftsmen’s Fair, Ticketland

13. Pay as you go

Instead of purchasing a specific number of products in advance, customers pay for actual use at the end of the billing period.The pay-as-you-go model is most common in the home, but it applies to products such as printer ink.

Examples: HP Instant Ink

14. “Razor and blade”

This business model is named after the product that came up with: Sell a durable product for less than cost to increase sales of the one-off component of that product.

This is why razor companies give away the razor itself at virtually no cost, assuming you will become a regular customer for a huge amount of razor blades in the long run.The purpose of the sale is to lure the customer into a system of ongoing interaction and to ensure that over time there will be many additional purchases.

Examples : Gillette, inkjet printers, Caterpillar, Amazon’s Kindle

15. “Razor and reverse blade”

By rethinking your previous business model, you can offer your customers a high value product and develop sales of additional low value products. Similar to the razor and blade model, customers are often motivated to join a particular grocery system.However, unlike the previous option, the initial purchase in this case becomes a large sale, as a result of which the company makes most of its money. Additional products are only intended to provide customers with the initially expensive item.

Examples : iPod and iTunes, Keynote, Numbers

16. Reverse Auction

This business model allows buyers to give sellers their price.For example, Priceline.com at one time revolutionized online booking thanks to this concept. Site users choose the area of ​​the city they are interested in, the star rating of the hotel and name the price they are willing to pay. If this price is not lower than the confidential rates for rooms provided by the establishments, confirmation and the name of the hotel are immediately received.

Examples: Priceline.com, LendingTree

17. Subscription

This business model is becoming more common.Its essence lies in the fact that consumers must pay a subscription fee for access to the service. This business model has spread through magazines and newspapers, now it is spreading to software, online services, and sometimes in the service industry.

Examples: Netflix, Salesforce, Comcast

This list is not exhaustive and may be supplemented. But aspiring entrepreneurs should remember that in order to achieve business success, it is not always necessary to invent a new business model, because everything new is associated with higher risks.On the contrary, the use of existing models can greatly simplify the situation, since these models have already been proven to be effective.

Based on materials from Bplan

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90,000 Skyscrapers – no: the Japanese model of high-rise construction was criticized in St. Petersburg

St. Petersburg will be offered a new development concept based on the TOD principle – it is based on the Japanese model of creating development centers on the outskirts of cities.In particular, high-rise construction is proposed where it will not violate the historical appearance of the city, but will be able to interest investors. Experts appreciated the idea and told why St. Petersburg is not a city of skyscrapers.

The creation of development centers in districts remote from the center may require changes in altitude regulations, said Vladimir Avrutin, Deputy Director General for Urban Development of the Institute of Territorial Development, in an interview with RBC. According to him, there is still no scheme for placing dominants in the city, which developers use for their own benefit – they build high-rise buildings not where they would look harmonious, but where it is profitable for them.Moreover, the very principle of dominant is violated – when a 25-storey building is surrounded by the same, as can already be observed, for example, in Murino.

Boris Vishnevsky, a deputy of the Legislative Assembly and city rights activist, also spoke out against this idea. According to him, the Japanese model is not suitable for St. Petersburg because of the difference in input data – there is little land in the Land of the Rising Sun, so they have to build multi-storey buildings there, based on space savings. There is no such problem in the city on the Neva.

“Every time I hear that let’s make a territory where other norms of altitude regulations will apply, I want to ask: why? We have no shortage of business centers.Business suffers huge losses due to the epidemic, ”Vishnevsky recalled.

Alexander Karpov, director of the ECOM Expertise Center, did not approve of the idea either. He noted that the implementation of such a project is impossible until the approval of the new General Plan. And it is to be brought up for discussion before the end of this year. He also recalled the promises of officials that the creation of new skyscrapers will not affect the city center – the Center built on the outskirts of Lakhta is perfectly visible from both Palace Square and Angliyskaya Embankment from the very heart of St. Petersburg.

90,000 What is happening in the class A office real estate segment in Moscow

The active withdrawal of some employees to work remotely and the desire to optimize operating costs have become the reasons for changes in the office real estate market. The trend towards flexible offices is strengthening, the area of ​​occupied space is decreasing, while the interest in class A locations is growing. How will the office real estate segment in Moscow develop in 2022?

The pandemic and lockdown have had a particularly strong impact on the office real estate market.First of all, this is due to the abrupt transfer of most of the employees to telecommuting. According to reports from Cushman & Wakefield, before the pandemic, only 1% of all employees worked remotely, in 2020 the figure was close to 80%, and today it is fixed at 30%. This indicator will be relevant in the world in the coming years.

What has changed in the office real estate market and how things are today Alexander Ustinov, Development Director of Professional FM , told.

Sublease & Flexible Offices

Due to the economic downturn, most companies have changed their interests in the rental property and decided to reduce the occupied space.So, according to the analytical center Professional FM, both in class A and B in buildings with professional management, contracts do not provide for a prompt exit from the contract, the only effective solution to optimize rental costs was the withdrawal of excess space to sublease – in 2021 the supply doubled compared to 2019.

This not only affected the overall market situation, but also led to a decrease in the average rate below $ 295 per m2 per year in all market segments.

In addition, the trend towards flexible offices has strengthened.Today, there are 285,000 m2 of flexible offices in Moscow, which is 40% more than in 2019.

90,086 Demand for premium real estate 90,087

Despite the prerequisites for increased activity after the end of the lockdown, the number of transactions in the office real estate market is decreasing – by 25% in 2021 compared to 2019. It is also associated with a shorter planning horizon and a high degree of economic uncertainty.

At the same time, the demand for class A offices is increasing.With the departure of some of the employees to retirement, tenants began to choose premises in the more premium segment. So, when optimizing the budget, they receive bonuses for premium objects: a central location, well-developed infrastructure and well-known brands in the neighborhood.

A deficit for Class A offices has begun to form, especially in the Central Business District of Moscow. Thus, the number of vacant space in the market as a whole is about 12%, in class A – less than 10%, and in the Central Business District – does not exceed 7%.Many commercial property owners are cutting vacancies at the property and attracting international tenants within the window of opportunity that has emerged in the market.

For example, in the class A + business center “Romanov Dvor” since January 2021, over 9 months, the vacant space has decreased by 70% (from 11,000 to 4,000 m2). During this period, the building management company (Professional FM) entered into 7 lease agreements with leading international and Russian companies.

It is also worth noting that in the CDR in class A there are no offers with an area of ​​more than 5,000 m2, which creates additional exclusivity for the already private objects in this area: a waiting list for potential tenants begins to form, and this will ultimately lead to inexorable growth rental rates in this segment.It is also important that CDR is the only district in Moscow where foreign exchange rental rates are preserved, which at the same time do not become a blocking factor in the conclusion of transactions, and this is a rare exception, because the main tenants of such areas are international companies.

Popular areas of Moscow

If we talk about the districts of the capital, the tenants show the greatest interest in the Central and Belarusian business districts, as well as in Moscow City. For example, fast-growing IT companies prefer flexible offices and off-the-shelf options.Conservative international organizations, on the contrary, choose an office for a long time and responsibly: as a rule, the status of the object and its infrastructure becomes the decisive factor.


Read also: In Russia, the demand for office lease has exceeded the pre-pandemic level


Forecast for the future

Already now, it is possible to predict a reduction in vacant space in class A offices and an almost total absorption of vacancies in the Central Business District until the 3rd quarter of 2022.You can also expect the start of growth in rental rates in these segments, at least at the level of the CPI (Consumer Price Index) annually.

A larger-scale transformation of Class A office buildings into club spaces can also be expected. This slightly repeats the trend of transformation of a shopping and entertainment center into an RTC (entertainment and shopping centers) as a response to the crisis and the shift of objects from basic consumption to mandatory additional services.

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