A ups flat rate box??

Discussion in 'UPS Discussions' started by coldworld, Nov 23, 2006.

  1. Coldworld

    Coldworld Well-Known Member

    The post office has 2 size flat rate boxes, that can go anyhere in the country for 9 or 10 bucks. They are small, but it seems that there are many people and companies that are using this service. I really dont know why ups wont start up a service like this. Now of course there would be no way that ups could take up to 70 lbs like the post office. How about cap the weight at 25 lbs and charge a dollar more than the post office. This seems like a no brainer since so much of the post office parcels are from this kind of service. This would be a great volume growth for ups. There will always be more profit in larger boxes but it would be nice to start having smaller boxes on car that fit on shelves better and are quicker to deliver. what do others think???

    I also predict that within a few years, the post office will make a partnership with ups supply chain solutions for us to deliver all of their parcels for them so that they can focus on bulk mail and envelopes. Is this too far fetched or not. I also predict that within a few years that ups will be involved in delivering mail in europe.
     
  2. BLACKBOX

    BLACKBOX Life is a Highway...

    Unless UPS SCS gets thier act together some other competitor might just offer that service. I predict that the USPS in a few years to cut costs will end Saturday Mail service.

    UPS to del mail in Europe? Not likely, Mail service like in the U.S. is subsidized by the goverment, too lucrutive to give it up to a private enterprise.

    Did anyone catch that news about Deutch NV giving up that "Golden Share" leaving the door open for someone to purchase "TNT SKYPAK". This was a major roadblock for a major player to purchase this company without the Dutch Government as a major shareholder.

    Look for one of the Big 3 (UPS,FDX AND DHL) to acquire before year is out.
     
  3. Gman24

    Gman24 Member

    Next day rates. All next day service used to be that way when next day started. It used to be you could send a next day letter to ANYWHERE in the 50 states and it was one FLAT rate. UPS got "smart" and realized they were losing money on a next day letter from EAST coast being shipped to West coast.

    You guys have to realize that USPS is subsidized by the US government. Their bottom line isn't quite as important as a privately owned company like UPS. UPS has ALWAYS done business to make PROFIT. Personally, I hope it stays that way, MINE, YOURs, and everyones job depends on it.

    This is another subject, but that's why some of you see FED EX get in the door sometimes and get our business. They come in a drop rates way below ours for a year or so, even though they may actually not be making ANYTHING, then BAM they go up 15-20% 6 months or a year later. The customer usually doesn't see it coming. UPS is NOT going to drop rates for any customer unless it sees a profit in doing so. That's just good business.
     
  4. SmithBarney

    SmithBarney Well-Known Member

    Well I know for one thing, the USPS got my letters clear across the country in 3 days, for 39cents or whatever it cost now.. and my priority mail envelope across the US in 1 day for $4 The last ground package I sent for 17$ UPS took 10 days, granted I could have got next day air service for closer to $40 dollars.
     
  5. hoser

    hoser Industrial Slob

    You guys forgot one thing:
    Under Federal Law, courier companies cannot price their services below the USPS. They have to apply a markup of 10% or something.

    And people still use us. This says something about the USPS, and maybe even brown.
     
  6. Coldworld

    Coldworld Well-Known Member

    but we are cheaper than their parcel post service, sometimes by alot. I think a flat rate box would help this company. It wouldnt and couldnt be used for most stuff, but it would help take more volume from the post office. Many customers would use ups even though it was more expensive just to stay out of the post office pathetically long lines. I really doubt ups would loose money on something like that. Even though they would loose money in some zones, they would make up in more volume and this would still be a small percentage of actual volume. Look at most packages in a package car, except for clothing bags from catalogue companies, most all parcels are larger than the post offices flat rate boxes. The only thing that is helping out the post office now is ebay and those flat rate boxes, these are two areas ups should be targeting. The ups basic service is taking a large chunk from the usps, might as well take the rest of it also. They have enough to do with all of the letters.
     
  7. BLACKBOX

    BLACKBOX Life is a Highway...

    I wonder maybe if you looked at it in a reverse manner. How about UPS doing USPS's bulk mail and maybe the "Express Mail" boxes? This is our "niche" and they can have the everyday mail stuff. Besides, how many people would look good in a brown "Safari Hat"?
     
  8. hoser

    hoser Industrial Slob

    We cannot have a cheaper overnight or express product in the USA. It must be marked up by at least $3. It's against the law otherwise.

    FedEx already handles a large amount of USPS' express letter and parcel post, and their aircraft moves a lot of US mail and medium-time-in-transit parcels.
    That's why you see FX drop boxes outside USPS outlets.
     
  9. BLACKBOX

    BLACKBOX Life is a Highway...

    FedEx already handles a large amount of USPS' express letter and parcel post, and their aircraft moves a lot of US mail and medium-time-in-transit parcels.
    That's why you see FX drop boxes outside USPS outlets.[/quote]



    I was told by a FDX ramp guy that USPS turns full containers of mail to them every night, there is no handling of loose cargo anywhere of mail in the FDX system. At destination station these same containers are picked up by USPS drivers. FEDEX'S job is to get it from point a to point b-that's it.

    What coldworld was wondering about was of UPS handling a certain weight/certain box type that would fit neatly on the shelf. I don't think we can fanthom just how much mail USPS moves. Something maybe UPS can offer that would be a win-win situation for both.

    When you think about it, how in the world does USPS deliver all those boxes in those dinky little trucks anyway??
     
  10. SmithBarney

    SmithBarney Well-Known Member

    UPS BASIC, while we are a small town, our local USPS has been getting 8-9 smalls bags a day full of BASIC packages, up from 2-3 last year.
     
  11. huskres

    huskres Member

    usps delivers 212 billion pieces a year...and receives no money from the govt like most people think but why cant businesses offer lower rates?
     
  12. SmithBarney

    SmithBarney Well-Known Member

    there average piece weight is a letter.
    UPS average weight is 22lbs... (roughly)

    UPS moves parcels(predominantly)
    USPS moves letters (predominantly)

    And junk mail companies make alot of $$ for the USPS
    Think about your average trip to the mail box,
    my average day is 9 out of 10 letters are JUNK.
    But all those JUNK senders, still pay. Its money in the bank for the USPS
     
  13. upsdawg

    upsdawg UPSDAWG

    Huskres---the USPS receives no money or subsidies from the gov't??? You mean that they have to pay taxes on gas----real estate----profits.......technically the USPS is getting huge subsidies and unfair advantages.The USPS also gets to subsidize it's parcel service from monies that it receives from first class mail.The USPS does not have to show a profit---and if it needs more money, they just raise our 1st class mail rates and continue to subsidize all of their other levels of service-------how can the uSPS afford to offer a flat rate on their priority Mail---and also give you the box for free??

    UPS is able to get discounts from the USPS for their bulk mail and can offer additional services to our customers through our Supply Chain division---as far as UPS offering flat rates---this is my prediction-----special rates to UPSS locations!!
     
  14. hoser

    hoser Industrial Slob

    Correct, the agreement is primarily to move cargo from A to B.

    Up in Canada for my AM delivery run, I'd deliver one USPS express shipment (filled out on a form I've never seen before) once a week.

    One thing we should consider is that the only organization that offers this flat rate box is the post office, that is, an entitity not out to make profit. I think it's unfair to charge the same for a box with 10 pieces of paper than a box with half an auto transmission. Clients wouldn't appreciate paying the same to move something from LA-SF than LA-NY. This would further depreciate the rate structure that exists today, which is based on dim-weight.

    Yes, this is a good idea, but should only be implemented if UPS is deseperate for volume. As the old saying goes, if the system ain't broke, don't fix it.
    Because USPS has monopoly on mail and courier companies must markup their express overnight rates by $3.
     
  15. xDELETEDx

    xDELETEDx New Member

    Yeah, the USPS is a privately run company. All of their revenue is generated through themselves, they receive no money from the government.
     
  16. maybrown

    maybrown is not a woman

    I wish USPS should be a private company so my tax dollars won't support them. We also have 2 or 3 Post Offices.