I m getting less and less SOS

[TUT]

It is getting into definition of words... specifically: What constitutes "selling", what is a "real" discount and what is merely expected industry standard.

Finally, the issue of whether FedEx sales is giving discounts below industry standards for Ground product while not doing so for Express product.

I define selling as not only making a single offer of final price

Well I can't always say I'm being told everything to a tee.

But I was told there is no difference in the discount you can get today as you have in years past.

Express sold big and still sells today with those rates. It is obvious they have a price point they expect and are tough to go below it, but that isn't anything new. I feel a lot of implying is there is something new going on to "not sell" Express like they have in the past. I will agree that perhaps they do need to discount even more to mid/low-level volume customers. But that would be even more discounting, not less.

As for Ground, I don't see them being any cheaper the UPS. I've been told by other shippers that sometimes you get a better deal from Fedex and sometimes UPS, but nothing in terms of stating, "Fedex Ground is cheaper then UPS ground", in fact I'd say more people then not can get better UPS Ground rates then Fedex Ground rates when you are talking customers with volume.

Right, what you mentioned about Express and Ground sales can be true, that is a business strategy based on the current business climate. Not an attack on the Express Employee.

About the driver leads, I've been told they are legit in attempts to get business for Express and that it's a pain for all involved, forms, time deadlines to follow up, all for Express. Typically these go nowhere, but most sales calls go nowhere, if they end up being Express, Ground or Freight that would be up to the customer. If you are correct that it is really a ground scheme, the actual Sales Reps doing it for your company are clueless as to the secret plan.

 

[Ricochet1a]

About the driver leads, I've been told they are legit in attempts to get business for Express and that it's a pain for all involved, forms, time deadlines to follow up, all for Express. Typically these go nowhere, but most sales calls go nowhere, if they end up being Express, Ground or Freight that would be up to the customer. If you are correct that it is really a ground scheme, the actual Sales Reps doing it for your company are clueless as to the secret plan.

Ask your sales contact this:

"Of all the leads submitted by Express Couriers which lead to an increase in business for FedEx, what percentage of that increase in FedEx business is going to Ground (piece count, NOT gross revenue), and what percentage is going to Express (again piece count, NOT gross revenue)."\

If he is forthright, you'll get your answer.

As an aside, Ground drivers CANNOT turn in sales leads for FedEx... They aren't employees..... curious how that works...

 

[TUT]

Ask your sales contact this:

"Of all the leads submitted by Express Couriers which lead to an increase in business for FedEx, what percentage of that increase in FedEx business is going to Ground (piece count, NOT gross revenue), and what percentage is going to Express (again piece count, NOT gross revenue)."\

If he is forthright, you'll get your answer.

As an aside, Ground drivers CANNOT turn in sales leads for FedEx... They aren't employees..... curious how that works...

1. I will, it doesn't seem like this has been going on too long yet, so there is a chance nothing much has been gained anywhere. I'll follow up, need a few days on that one. But if they don't follow any blitz up with some type of real promotional discounts, as someone said earlier today it's not like UPS and Fedex are secrets, if you come into my office with nothing new in prices you best be coming in with some event tickets!!! Because there is no business for us to discuss on that level without saving shippers cash. We aren't doing all that great either, have laid off, could lay off more, need better margins, etc. Nobody wants to do that, companies like Fedex would be happy hiring more if the economy grew and demanded it.

2. Curious how that works? You are alluding to a scheme going on here. But you have the answer directly before it "They aren't employees", there must be some legal reason why they cannot have them do this. Seems very reasonable again.

 

[Ricochet1a]

There is a reason for EVERYTHING. Trying to determine that reason takes some research and knowledge of how things work.

If Ground drivers WERE asked to submit sales leads, they would be moving one step closer towards behaving like FedEx employees. FedEx CAN'T have that happen, since if they were declared employees by some court - then the whole house of cards would come tumbling down on FedEx (FedEx lives in mortal fear of a court finding that the Ground drivers are employees of FedEx and not "independent"). The solution to this fear, was the adoption of the ISP model - and it is being rolled out as quickly as FedEx can manage.

Just as a simple logic exercise, since all of the growth within FedEx IS within Ground, on the surface, it would make SENSE to have the Ground drivers get sales leads too - since that is where the growth is. Why aren't they doing so?

The contractors that post here can tell you what they get from FedEx sales regarding their turning in "sales leads"...