Is Ground really getting E2 and XS?

[vantexan]

LOL, I'm starting to think they are putting something in the water at Express stations. It's Time and Cost analysis on the shippers end. If that is what Fred wants then great, but it doesn't affect me at all what he wants. These are common services. What they make on profit is again of no worry of mine... Remember this all goes back to the notion that Sales is being directed to sell Ground over Express. I haven't changed my stance, Sales listens to what I want, will clarify things I may not know, may give suggestions what could work best for me (sometimes ground, sometimes air), but I will understand those and then make a choice. Their pitch is similar to UPS's and they also don't have this secret handshake to sway me over to ground. They'll gladly and evenly take anything one gives them, it's not easy to close new business.

And if you were a major shipper they'd offer you special discounts with Ground to get your business. Just because you are paying comparable prices to UPS doesn't mean that's the same deal everyone is getting.

 

[overflowed]

"Is UPS offering next day service in a regional zone with a letter rate of $5?" - Some Amazon's yes, but by far no.

"list of prices for a 2 lb pkg going by UPS, FedEx Express, and FedEx Ground and Ground was much cheaper" - UPS Ground and Fedex ground will be identical everytime and Express will be a lot more.

"I guess if they are charging the same rates as UPS Ground then UPS has nothing to worry about" - I do see the logic in that. But it doesn't explain the whole story or tendencies. But your point is if UPS Ground and Fedex Ground were very near equal, why would a shipper pick a 2nd rate operating company vs UPS? Well they do, even when it is close to even. Now not all and not even most are choosing Fedex Ground, as one can see UPS Ground is something like 10x the size of Fedex Ground. But there are customers that were burned in their view by UPS on something, think claims. There are many others that look at the delivery success metrics and see Fedex Ground is comparable even with contractors vs Union. Some of it has to do with Union, that works both ways, Fedex Ground won't get some business because they aren't Union. UPS is more flexible with pickup times simply because they have more boots on the ground to do so. Many companies today do this "UPS GROUND" - "FEDEX AIR", using the perceived leaders in both segments. I get that to.

But the best overall bottom line I can give you is Fedex Ground Service is with all it has against it... still comparable in getting a package from A to B vs UPS.

But UPS or Fedex at any time could be cheaper than the other, there is no "it's a given Fedex Ground is cheaper than UPS" if it were Fedex Ground would be growing even faster, perhaps that is why they are expanding as fast as they can, so they can do that someday. Because one is right with their models, Fedex Ground should be able to under cut UPS, capacity must be the issue and if Fedex Ground is near full now, why cut your price, right? Now one can say USPS is cheaper than either Fedex or UPS, that is true.

I still feel the regional carrier is the segment that can upset the two majors and they have the contractor model and lower overhead in management, by far. The more warehouses large companies place, the more regional carriers play a part and that is happening.

I actually agree with you. I've pondered this before and I also think capacity is the issue or otherwise fedex ground would undercut price to take market share. They can't, so they don't undercut ground prices. With the prices they're paying for ground, they're just making a killing. They don't want to overflow the system till they're ready. That's why they're putting up super ground hubs everywhere now. When fedex is ready that's when they'll undercut the price. When the infrastructure is there, UPS will have a wake up.

 

['Lord Brown's bidding']

If you, a mere pawn, can see this, UPS should already be awake. But it doesn't seem like it sometimes.

 

[vantexan]

I actually agree with you. I've pondered this before and I also think capacity is the issue or otherwise fedex ground would undercut price to take market share. They can't, so they don't undercut ground prices. With the prices they're paying for ground, they're just making a killing. They don't want to overflow the system till they're ready. That's why they're putting up super ground hubs everywhere now. When fedex is ready that's when they'll undercut the price. When the infrastructure is there, UPS will have a wake up.

And they must be close to being ready with this flurry of buyouts, station consolidations, etc.

 

[overflowed]

If you, a mere pawn, can see this, UPS should already be awake. But it doesn't seem like it sometimes.

A pawn yes, stupid no. I don't like the ground model cause it eats my paycheck and I think it's unethical. But, its something I have to be aware of and think of. So should you brown guys.

 

[MrFedEx]

And they must be close to being ready with this flurry of buyouts, station consolidations, etc.

Exactly. It all adds-up to an inescapable conclusion. You get the Lt. Columbo Trophy this evening.

 

[MrFedEx]

Exactly. It all adds-up to an inescapable conclusion. You get the Lt. Columbo Trophy this evening.

Lt. Columbo (chomping lit cigar): "You almost had me, Mr. Smith".

Fred: "I didn't do it".

Lt. Columbo: " It was the dispatchers".

Fred: "The dispatchers?"

Lt. Columbo: "The dispatchers, sir".

Lt. Columbo: "Why would you need Express dispatchers at FedEx Ground, when there is no Ground dispatch?"

Fred: "No"

Lt. Columbo: "And the trailers sir. The trailers bothered me. You know, the new ones with the rollers? Yes, those trailers sir. Why would you need a Ground trailer that could haul air containers?"

Fred: " E2 and XS are not going over to Ground!!

Lt. Columbo: "Yes sir, I'm afraid they are". You did it, and I understand why. It was the money. Sergeant! We need to give Mr. Smith a ride downtown.

Cue closing theme.

 

[bbsam]

If you, a mere pawn, can see this, UPS should already be awake. But it doesn't seem like it sometimes.

possible that they are awake but powerless to do anything about it.

 

[TUT]

And if you were a major shipper they'd offer you special discounts with Ground to get your business. Just because you are paying comparable prices to UPS doesn't mean that's the same deal everyone is getting.

No ****. But no matter the volume it all scales and both carriers compete evenly throughout it.

 

[vantexan]

No ****. But no matter the volume it all scales and both carriers compete evenly throughout it.

But will UPS be able to compete in the future?

 

[UpstateNYUPSer(Ret)]

No ****. But no matter the volume it all scales and both carriers compete evenly throughout it.

But will UPS be able to compete in the future?

...only if we address the wage differential now....

 

[vantexan]

...only if we address the wage differential now....

Not much wiggle room there. If all current drivers keep their pay and only new drivers get paid much less with with reduced benefits it'll be decades before you'll be competitive. Will you have that long? Will your fellow drivers accept a huge pay cut in the coming negotiations? Sounds to me from the little I've heard they seem ready to go to war over health benefits.

 

[TUT]

But will UPS be able to compete in the future?

That has yet to be seen. But that wasn't my original point of entry into this thread.

 

[MrFedEx]

...only if we address the wage differential now....

Yep. You start by cutting your wage right now. Or maybe UPS should start fighting the Ground scam in the political arena...the way Smith does. I'm amazed how UPS has just rolled-over on it's back like a defeated dog in terms of Ground. There is a lot of room to challenge the Ground/ISP model, especially on the grounds that the drivers are really employees.

I love the way you're always tacitly supporting the Ground business model, apparently because it synchs with your Libertarian/Conservative ideals of business. But you are a union employee that enjoys the high wages and great benefits that come through being a member of the IBT, so it's OK if you're getting a good deal, but everyone else needs to realize that this is the "New Normal", and they need to accept it.

BS.

 

[vantexan]

That has yet to be seen. But that wasn't my original point of entry into this thread.

I may be wrong but you seem to be saying FedEx Ground and UPS Ground are essentially the same and neither has a competitive advantage over the other. And that FedEx sales isn't promoting Ground over it's other services because you haven't personally seen it. It's strictly a matter of the customer choosing what he wants and that we're all paranoid for thinking otherwise. Correct me if I'm wrong.

 

[TUT]

I may be wrong but you seem to be saying FedEx Ground and UPS Ground are essentially the same and neither has a competitive advantage over the other. And that FedEx sales isn't promoting Ground over it's other services because you haven't personally seen it. It's strictly a matter of the customer choosing what he wants and that we're all paranoid for thinking otherwise. Correct me if I'm wrong.

The first part wasn't in during the start of the convo (The two carriers are very competitive on each matching service)... The other part is, the part I was talking about. Yes what I am saying is your Sales Force isn't overselling ground and underselling express, that said ground is an easier sell, which is no surprise $$$ is king. There isn't an agenda in that manner. They are out there trying to get business in Ground, Air, Intl, LTL and Ocean, no matter. They are open for business on any of those and will take whatever a shipper needs. The rates that are given to the shipper are comparable to UPS or other competitors, this isn't something where Fedex Ground is under-cutting all competitors (because of an agenda) where Express is the most expensive amongst all providers (because of an agenda), it's based on cost of service. Some here are believing Fedex is purposely moving shippers to ground, I am letting everyone know, that isn't the case. What is happening is the shipper/consumer is driving the demand to ground and Fedex is adjusting to that demand.

 

[bbsam]

...only if we address the wage differential now....

until recently I was of the belief that UPS wouldn't have a strike and comments to the contrary were blown out of proportion. I'm not so sure about that anymore.

 

[thedownhillEXPRESS]

Same here.

 

[Mr. 7]

STRIKE! STRIKE! STRIKE!
I'll take your job in a heartbeat.

 

[MAKAVELI]

STRIKE! STRIKE! STRIKE!
I'll take your job in a heartbeat.

Just because they strike doesn't mean any scabs would be hired. And if they did it would be temporary until the strike is over.