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UPS Union Issues
Letter from hall to me. I will provide copy to anyone that wants one.
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<blockquote data-quote="kingOFchester" data-source="post: 1181456" data-attributes="member: 11246"><p><strong>Re: Letter from Ken H to me. I will provide copy to anyone that wants one.</strong></p><p></p><p></p><p></p><p>I would not make such a guarantee. Nothing in life is guaranteed but death. We do not know the true financial state at big brown. The numbers do look good, but we do need to keep in mind companies use creative financing to raise their stock value. There is no guarantee that UPS doesn't see an inevitable profit road block on the horizon. Do I think this, no. But I have learned in life many slam dunks, or guarantees, or to big to fail statements are sometimes followed up with " didn't see that coming".</p><p></p><p>Lets say I sell Wingdings. I made a billion dollars last year peddling the Wingdings. Sounds good? However, the Wingdings cost me $24.00 to make, and I sell them for $25.00 making a dollar per Wingding. I sell a billion Wingdings a year. My wing supplier decides to up my cost of wings by a buck and my ding supplier ups my price by a buck as well. Unless I am able to pass that cost along, I would loose a billion the coming year. </p><p></p><p>Worse then that, my competitor, selling the same Wingdings is able to get the wings and dings at 40% less then me and sells them for $25.00. This competitor isn't as large as me, so his manufacturing cost is higher. He is only making a small profit even tho he pays 40% less for his wings and dings. As he gets more business, ramps up production, his manufacturing cost goes down, while still paying less for the product. At some point, once he has the same or greater production out put as me, he will be able to lower his price of Wingdings at a price lower then my cost to buy product and manufacture Wingdings, and eventually put me out of business.</p><p></p><p>Just something to think about.</p></blockquote><p></p>
[QUOTE="kingOFchester, post: 1181456, member: 11246"] [b]Re: Letter from Ken H to me. I will provide copy to anyone that wants one.[/b] I would not make such a guarantee. Nothing in life is guaranteed but death. We do not know the true financial state at big brown. The numbers do look good, but we do need to keep in mind companies use creative financing to raise their stock value. There is no guarantee that UPS doesn't see an inevitable profit road block on the horizon. Do I think this, no. But I have learned in life many slam dunks, or guarantees, or to big to fail statements are sometimes followed up with " didn't see that coming". Lets say I sell Wingdings. I made a billion dollars last year peddling the Wingdings. Sounds good? However, the Wingdings cost me $24.00 to make, and I sell them for $25.00 making a dollar per Wingding. I sell a billion Wingdings a year. My wing supplier decides to up my cost of wings by a buck and my ding supplier ups my price by a buck as well. Unless I am able to pass that cost along, I would loose a billion the coming year. Worse then that, my competitor, selling the same Wingdings is able to get the wings and dings at 40% less then me and sells them for $25.00. This competitor isn't as large as me, so his manufacturing cost is higher. He is only making a small profit even tho he pays 40% less for his wings and dings. As he gets more business, ramps up production, his manufacturing cost goes down, while still paying less for the product. At some point, once he has the same or greater production out put as me, he will be able to lower his price of Wingdings at a price lower then my cost to buy product and manufacture Wingdings, and eventually put me out of business. Just something to think about. [/QUOTE]
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Letter from hall to me. I will provide copy to anyone that wants one.
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