# Kinko’s: Paul Orfalea

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2023-08-21
- Length: 1h 01m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea

## Summary

Paul Orfalea, founder of Kinko's, explains how he launched a single copy shop in 1970 near UC Santa Barbara by renting a Xerox machine for $1,100 a month and leveraging the 'float' from Xerox's billing delays. He details his unique 'co-owner' partnership model, which avoided traditional franchising by giving local operators equity and profit-sharing, and describes the strategic pivot to 24-hour operations that doubled daytime revenue. Orfalea also discusses the company's evolution through a copyright lawsuit, the introduction of computer workstations, and its eventual $2.4 billion acquisition by FedEx.

## Chapters

- [1:04](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea#t=64) Introduction: Paul Orfalea and the Origin of Kinko's
- [4:21](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea#t=261) Early Life, Education, and the First Store
- [12:41](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea#t=761) Financing the First Shop: Xerox Rental and Float
- [20:45](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea#t=1245) Expansion Strategy: The Co-Owner Partnership Model
- [39:29](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea#t=2369) The 24-Hour Pivot and Operational Challenges
- [44:34](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea#t=2674) Competition, Insecurity, and the Laser Printer Threat
- [51:37](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea#t=3097) The Copyright Lawsuit and Shift to Commercial Customers
- [56:21](https://hardwarepodcasts.com/podcast/how-i-built-this/2023-08-21-kinkos-paul-orfalea#t=3381) Professionalization, Sale to Investcorp, and FedEx Acquisition

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)

## Most relevant to

founders before launch, companies scaling up

## Mentioned

- Kinko's (product)
- Xerox (company)
- FedEx (company)
- Office Depot (company)
- Office Max (company)

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- [321 - REPENT! The Label King, Robert Parker, is here!](https://hardwarepodcasts.com/podcast/people-of-packaging/2025-08-11-321-repent-the-label-king-robert-parker-is-here) (People of Packaging)
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## Citing this page

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