no, not exactly. we take customers shipping charactoristics and run them through our pricing system. EVERYTHING has a cost to it...box size, weight, package charactoristics, number of package, DELIVERY distribution (is it resi, is it rural, is it going to a major city), payment terms, payment options, is it picked up on a feeder truck, package car, does it require additional handling, is it a high damage customer that we will pay a high frequency of claims, etc.
once this analysis is complete, yes, we are given a small range in which to negotiate. and YES we want to get those packages at the price that will benefit UPS the most - its called negotitation.
at UPS, we will lose on price everytime. fedex has a much different cost structure (see independant contractors, seperate air network, etc).
this forces UPS to sell value - technology, customer service, drivers, etc. - you wonder why to have SSI accounts? that is value UPS can bring that fedex cannot - it is a differntiator.
maybe that gives you a teeny tiny snapshot into what I do on my laptop all day.
and yes, it helps immensly if the driver has a good relationship with the customer and can get us in to talk to the people that make the decision.
edit: and once we DO win the business, it is the Account Executive jobs to retain it - that is just as hard with fedex offering similar services and much better pricing.