When did you open the Pilot Store? How long did it take to reach the BEP?
Our Pilot Store started to operate in April of 2018, and we were able to reach the BEP (break-even point) by June, just two months later. We started with only two employees, one was our Country Manager, and another was a store assistant who was also a graphic designer. We aimed to reach our BEP as soon as possible, so we kept costs at a minimum price and often worked long hours. It required us to use a lot of our knowledge and network first with customers to help keep them satisfied with our solutions.
As we all know, 2020 was an unprecedented year. Could you tell us how it was for MBE Adriatic? What are the highlights of your 2020 results?
2020 was unprecedented, but we managed to continue developing our business. The Print & Marketing business sector was hit very hard; however, we were able to turn part of the activities into fulfillment services (micrologistics solutions), and we increased the number of parcels managed. The pandemic boosted e-commerce, so we did our best to adapt, increased our volumes of shipments, and offered additional services. As a result, couriers were overloaded, so many parcels started to be delayed, broken, or missing, so we increased our efforts to find new solutions and ways to deliver on time.
What are your takeaways from 2020? And what does it say about MBE Adriatic?
MBE is a multiple revenue stream business, which is beneficial during a time of crisis. Due to the pandemic, fairs/events were canceled, and the printing business suffered, but with MBE, you can always increase some other revenue streams. One area that flourished was the Pack & Ship business, due to it almost bringing in recurring revenues – meaning that B2B customers will give you recurring shipments, so you can always count on this revenue stream. While some profit centers can decrease significantly, you can always work on others, so you are not dependent on one customer, one vertical, or single type of business. We, at MBE Adriatic, are a small team of dedicated people, who can adapt quickly and easily, so this helped us a lot during the pandemic. We took almost any job in the shipping, packing, logistics, or printing areas and developed it to gain new customers and survive through the pandemic, says Saša Cvetojević.
Could you tell us about Q1 of 2021 and what does the current activity looks like?
Q1 of 2021 was challenging, some of our customers were still struggling and were having trouble respecting our payment conditions. This caused us to increase our effort in collecting payments. Competition in the shipping market has grown, so we needed to increase our market share. In any case, we are continuing our Retail Network Development efforts, and I think 2021 will be positive for us in terms of new openings. We are increasing our marketing efforts and strengthening our sales team, so we expect to acquire more small and medium-sized enterprises to broaden our customer base even further.
Focusing on your various business services, what are the key trends in Croatia?
I would say that e-commerce is a business driver, and demand for national delivery is exponentially increasing.
Looking beyond the Network results, the Retail Network Development is very important during difficult market conditions; how are you doing on that front?
So far, RND seems good. We had just signed an Area Franchise contract for Bosnia and Herzegovina, so we expect the first store to be open in Sarajevo this summer. We have 10 locations so far (9 in Croatia and 1 in Slovenia), and we are about to sign two new contracts for Croatia. Also, we do have two strong leads, so we hope to open at least 3-4 new MBE Centers in Croatia by the end of the year.
What are your priorities going forward?
Our next task is to consolidate the Network since we are growing so fast. We need to put more effort into education to help all our MBE Franchisees deliver excellent service to all of our customers. When we do consolidate, we will be able to offer MBE as a Network to new corporate customers.
How would you describe 2021 in 3 words?
Challenging but full of opportunities.
Thank you very much, Saša Cvetojević!
Warmest congratulations on your achievement and we look forward to receiving more exciting news from you.
Mail Boxes Etc./MBE centers operate through independent franchisees under the MBE brand. Through its franchise network, Mail Boxes Etc. provides support services for businesses and individuals. Logistics and shipping services are MBE’s core offerings—facilitated through agreements MBE makes for the benefit of its franchisees with major domestic and international express couriers—along with other graphic and printing services, provided either directly or through agreements with large printing centers. Promotion of services to business and private customers is carried out as part of the business activities of each MBE franchise partner, both inside and outside MBE centers ("farming"). Each franchise partner is contractually obligated to perform such activities. Mail Boxes Etc. and MBE are registered trademarks used with permission from Fortidia – a registered trademark of MBE Worldwide S.p.A – (All rights reserved). Services offered by individual MBE centers may vary by location. The materials available on this website, the information contained herein, and any other relevant data may not be copied, distributed, modified, republished, reproduced, downloaded, or forwarded to third parties in any way without the express prior written consent of Sistema Italia 93 S.r.l. We accept no responsibility for unauthorized use of the materials, information, and/or data available on this website.
MBE Adriatic d.o.o. • Puževa ulica 11, Zagreb • OIB:64386903048 • MB:0479781