Is UPS pricing themselves out of customers?

Discussion in 'UPS Discussions' started by reginald396, Apr 23, 2015.

  1. reginald396

    reginald396 Member

    Had a chat with a customer today who was a regular pickup with UPS but now they have dropped us for FedEx. Their main reason was the increase in rates. I noticed this with other routes I've covered who have switched to FedEx. With Surepost, Ontrac, Amazon, Lasership, FedEx, DHL, it's no longer about the best service but the cheapest.
     
  2. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    The cost of F/T Drivers is the crux of the rate increases.
     
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  3. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    I picked up a major UPS account today and they asked for me to wait for them to finish one last package.

    A 15lb. semi-large box going to SF from SoCal.

    $14.

    The big shippers must get a great deal.

    That same package would be $45 at a UPS customer counter.
     
  4. rod

    rod retired and happy

    I don't know how these companies that offer free shipping do it. I bought an electric jack for my toy hauler the other day in between free shipping and no sales tax I saved right at a hundred bucks over what it would have cost me to buy a comparable one at one of the local RV dealers.
     
  5. rod

    rod retired and happy


    You're funny----the last I checked F/T management made more---lets start out with that big multimillion dollar raise the CEO got not too long ago.
     
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  6. Jackburton

    Jackburton Gone Fish'n

    FIFA
     
  7. jaker

    jaker trolling

    Ink and paper is the reason cost is going up
     
  8. Mugarolla

    Mugarolla Light 'em up!

    And the $1B they spent on ORION. And it doesn't even work!
     
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  9. slappyhappy

    slappyhappy Member

    Gotta fund the bull$#!t known as Orion somehow.
     
  10. retiredTxfeeder

    retiredTxfeeder cap'n crunch

    I shipped a 1 lb package ground to my daughter from Houston to Dallas a while back. Didn't insure it. It was $17 frickin dollars. Maybe stuff costs more because it was a UPS store. They did charge me several fees over and above the regular shipping cost. I think one was a fuel surcharge and the other was a residential fee. I couldn't believe it.
     
  11. Johney

    Johney Raise your hand if you think Upstate is a D-Bag

    You of all people shouldn't complain one friggin bit about shipping charges.........you know dam well how much money the feeder dept waste's......shame on you. Gotta make it up somehow, can only beat up the package guys so much.:D
     
  12. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The rates at the UPS Store are supposed to be the same as our customer counter. The fuel and residential surcharges are both standard on most shipments.

    We are not the cheapest alternative by any means.
     
  13. DOK

    DOK Active Member

    How does the ups store make it's money?
    Not to hijack a thread, just curious.
     
  14. box_beeyotch

    box_beeyotch Well-Known Member

    I worked at one when I was a local sorter.They make most of their money by doing print jobs and creating signs/banners. They recieve a dollar for every UPS package that is dropped off to their location also.
     
  15. scratch

    scratch Least Best Moderator Staff Member

    I deliver to a Fedex Home Delivery contractor who owns three routes. He pays his drivers ten bucks an hour with no benefits. Simple math there, most people don't care about better service. Of course with ORION now, better service seems to be a thing of the past.
     
  16. ISC

    ISC New Member

    They get like a 40% discount with their UPS account but they charge standard price to customers
     
  17. worldwide

    worldwide Active Member

    According to the rate calculator at ups.com, your Customer Center rate quote is way off. Unless you saw the invoice from UPS for this package you quotes, you have no idea what the shipper actually paid UPS - the invoice includes the net rate the customer pays. $14 is likely the rate that was displayed on the shipping system that may include a customer "shipping & handling" charge.

    The UPS published rate for a 15-lb ground commercial package going from SF to LA is:

    Daily pickup - $11.63
    Customer Center/The UPS Store - $16.11

    The above rates include the fuel surcharge and an assumed package size of 13 x 13 13.

    The competition charges:
    USPS Priority Mail - $10.07
    On Trac - $11.57
    FedEx Ground - $11.63
     
  18. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    It was 2 to 3 rimes the size of 13 x 13.
     
  19. realbrown1

    realbrown1 Annoy a liberal today. Hit them with facts.

    Or maybe too many managers.

    I mean wtf do they do after we leave the building?
     
  20. retiredTxfeeder

    retiredTxfeeder cap'n crunch

    I paid it. I know how much feeders wastes. Those decisions were way above my pay grade. And on top of that, She tried to up sell me to NDA. She didn't know I was an employee and I knew we had ground service Hou-Dal next business day anyway.