cod fee's

Discussion in 'UPS Discussions' started by blkcloud, Oct 21, 2005.

  1. blkcloud

    blkcloud Guest

    I was wondering why I the shipper get charged cod fee's if the package is refused and sent back, I know that when regular ground packages get refused and sent back to me there is no extra charge added, but if its a cod the 7.00 fee (or what ever it is) stays on my bill. thanks,keith
     
  2. ups79

    ups79 Guest

    the heck of it is we probably still lost money on your shipment because it was a COD.
     
  3. blkcloud

    blkcloud Guest

    Does ups loose money on cod packages?
     
  4. ddomino

    ddomino Guest

    UPS looses money on no packages. If they were then the charge for those packages would go up. You get charged the c.o.d. fee because the driver went to the customer and tried to collect from them. If it is refused, we still tried to collect on the c.o.d. The service was rendered so the payment is expected. UPS charges the c.o.d. to the shipper just in case this does happen. UPS doesn't want to be out the c.o.d. fee.
     
  5. moreluck

    moreluck Guest

    "UPS looses money on no packages"

    I think they actually do lose money when they deliver to those really remote addresses in the boonies.....
     
  6. ddomino

    ddomino Guest

    We now have that residential charge. I believe the system knows what zips are extremely remote, and charges more. Also we now have Basic service, where pkgs are dropped at local post offices and del to house by po.
     
  7. ok2bclever

    ok2bclever Guest

    You only get charged COD fees if you decide to ship the package COD.

    Just trust your customer and avoid the fees.

    However, if you send it COD and the customer refuses it because it is COD UPS obviously saved you from a bad debt so it was a good choice to make it COD and we earned the service fee.
     
  8. blkcloud

    blkcloud Guest

    (The service was rendered so the payment is expected.)
    Correct me if im wrong...when I called and asked what the cod fee was for I was told it was for handling the money..If no money was collected...then that part of the service was not provided..the driver didnt do anything extra other than carry the package back to the truck..right??
     
  9. ok2bclever

    ok2bclever Guest

    "Correct me if im wrong..."

    Ok, you are wrong. [​IMG]

    Either you got an incomplete answer or you heard what you wanted to.

    A COD requires a driver to do far more than for a nonCOD as you have to know.

    Such things as having to interface with the customer, multiple trips, RTS'ing a package, both in the DIAD and then again by the clerks to add labelling to get the package back to you simply because it was a COD.

    And if the customer actually accepts and pays for the COD package we incur most of those same labor, fuel (multiple attempts),etc costs and then have the costs of getting the funds back to you.

    All of these costs, successful completions of collecting CODs, failed collection of CODs, outright refusals of CODs is averaged out and UPS decides how much they have to charge for this service to make a profit.

    I can tell you every driver and clerk out there would be estatic if UPS would quit offering the COD service as it adds contention at the delivery point often (blame the messenger) and is a security, economical and safety risk to the employees involved.

    So just send the package without a COD charge, trust your customer and save the COD fee.

    Or is there some reason not to trust your customer?

    It appears if you are getting COD refusal returns you may have a valid reason not to trust your customer and the COD fee saved you from the product loss.
     
  10. over9five

    over9five Guest

    You don't even have to trust your customer to avoid COD charges. They have this new thing now. Its called a ....
    CREDIT CARD
     
  11. scratch_king

    scratch_king Guest

    Amen to what ok2beclever posted. The way I have understood things over the years is that if we don't deliver the package on the first attempt, we don't make any profit(which is a few pennies on the dollar). Second attempt, we might break even, third attempt and returning the package, we are way in the hole. I can't understand how somebody can pick up the phone, order something, have several days to get a money order because their credit is bad or the shipper doesn't trust them, and I still have to go by and make three attempts. The best thing to do is to have them put it on a charge card, and if it is a high value item requiring a signature, ask them for a daytime address where they will be at. For example, work address or a neighbor who will sign for it.
     
  12. blkcloud

    blkcloud Guest

    yeah..i got a incomplete answer..one of these days when your no too busy call the 800 number and ask a question..not only do they not want to answer the phone,they "sometimes" wont give you the time of day..I cant tell you how many times I have just hung up the phone and called back because my operator could barely speak english..if you wonder why i ask so many stupid questions is that other than my driver the only help (other than u guys now) ive ever had was the 800 number..imagine your self as a outsider wanting to know something and when the phone is answered you hear back ground noise first..then, you go girl wooo haaaa im down wiff dat...oh uh..ups giggle giggle can i help you??
     
  13. ok2bclever

    ok2bclever Guest

    Do you know of a major corporation with a competent 800 number?

    I don't.

    They stopped using real UPS people at the 800 number years and years ago and we have the same type of sweatshop incompetent ninnies all the other major corporations use.

    From the point UPS switched to nonUPS personnel answering the 800 lines I instigated the best 2 out of 3 rule when needing them for answers, although best 51 out of 100 is a little more accurate if you have the time. [​IMG]
     
  14. blkcloud

    blkcloud Guest

    well at least it hasnt moved to india..yet
     
  15. ok2bclever

    ok2bclever Guest

    Give them time, I am sure they are working on that.