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Chicken or Egg Problem: Low rates for volume but can't get volume without low rates.
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<blockquote data-quote="beentheredonethat" data-source="post: 1145576" data-attributes="member: 4886"><p><strong>Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat</strong></p><p></p><p> </p><p></p><p>You are confusing that Atlanta does the pricing and 3 diferent companies pay different rates. The rate is based on our cost to serve. If the customer ships lots of pkgs that are small and heavey to locations that already get UPS deliveries, then our costs is low and we can give that customer better rates then a customer who ships a small amount going to sparsely populated areas where the delivery will be a unique stop. In the latter our costs are higher, so we can't offer the same kind of discount.</p></blockquote><p></p>
[QUOTE="beentheredonethat, post: 1145576, member: 4886"] [b]Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat[/b] You are confusing that Atlanta does the pricing and 3 diferent companies pay different rates. The rate is based on our cost to serve. If the customer ships lots of pkgs that are small and heavey to locations that already get UPS deliveries, then our costs is low and we can give that customer better rates then a customer who ships a small amount going to sparsely populated areas where the delivery will be a unique stop. In the latter our costs are higher, so we can't offer the same kind of discount. [/QUOTE]
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Chicken or Egg Problem: Low rates for volume but can't get volume without low rates.
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