New UPS Flat Rate Box

[UpstateNYUPSer(Ret)]

Breviity can be your friend.

 

[moreluck]

...and precision too !

 

[upssalesguy]

We could. But we would get stuck with any charges for unauthorized use of a shipper number. There is currently no way to check to see if it's a valid account, or if the person doing the shipping is authroized to use it.

If someone comes in with an ASD or GSD they got somewhere else, I don't care what account number they handwrite in it. The barcode on the label doesn't link back to me as being the source of the label. And, of course, prepaid labels are okay with me, too. (Although I did once notice someone used multiple copies of the same label on multiple packages, and I alerted my pick-up driver of that.)

And then there's also the issue of if I'm going to bill a 3rd party for shipping, I'm doing all the work of shipping, but only getting drop-off commission.

So they would need to, 1) Indemnify me in the case of unauthorized use of a shipper number, and 2) Pay me the work involved, not just drop-off rates.

That would be the same whether we're talking now, or about a flat rate box in the future.

I understand that as time moves on, the game changes. The role a TUPSS plays in the overall UPS strategy changes. But what doesn't change is the franchisees still have to be able to earn a living. If the game changes in a way that UPS is no longer providing sufficient revenue to the stores, the stores will go away. If UPS wants to keep a network of 4400+ stores, they can't force us to share the losses, and then deny us a chance to share in the profits.

If the game is going to change so UPS wants to compete head-on with USPS's second rate service, they should fund it out of corporate coffers, and not expect their franchisees to take the hit. That would be like saying to the PC drivers, "Well, we're getting you 5% more work, but we need you to take a 25% pay-cut so we can afford the costs associated with that 5% increase."

all good points, and that is why I said the UPS Stores would be pissed. They should give you more margin on those boxes if you sell them. you buy them for $9 in bulk, you sell for $12. who knows, its tough. Don't you all get business rates and then charge retail? there is a 30% margin (premium over business rates) built into retail rates.

About the account numbers - we have to change that strategy. I have major customer PISSED they cant goto a UPS store and bill to their account. I tell them to preprint labels before they travel and that is a pain. I guess the only solution would be to take a credit card when you take a third party account number to ensure payment.

it's tough, I know.

 

[over9five]

Breviity can be your friend.

How many threads are you in today?

 

[Catatonic]

Breviity can be your friend.

I prefer boxers.

 

[MrFedEx]

This is a smart move. The USPS does very well with Flat Rate packaging, especially with the eBay crowd. I use them all the time because it's an incredibly easy process. You slap a Priority Mail label on the box and that's it...regardless of weight. Plus, you can ship it from an Automated Postal Center 24hrs a day. I'd be willing to bet that most people are going to be shipping lightweight items and papers...not lead weights or metal ingots.

If UPS has a Flat Rate Box, FedEx will also have one as quickly as they can get them manufactured and distributed.

 

[upssalesguy]

If UPS has a Flat Rate Box, FedEx will also have one as quickly as they can get them manufactured and distributed.

and charge $1 less

 

[MrFedEx]

and charge $1 less

Probably, and Fred S will claim that FedEx invented the idea.

 

[RustyPMcG]

you buy them for $9 in bulk, you sell for $12.

A COGS of 75%? The only thing I sell that has a COGS that high is stamps.

Any retailer is shooting for a COGS of less than 40% overall. You've got all your direct costs and overhead on top of that. Rent, utilities, maintenance, labor, interest, credit card processing fees, royalties, licenses, taxes, insurance etc., etc. all have to get paid out of the gross margin, and there are few retailers out there who can survive if their overall COGS goes over 40%.

An electronics store might have a COGS of over 100% on some very hot item like the newest model of an iPod when it's released (yeah, Apple actually does have a wholesale price of more than the MSRP when they first release them), but the idea is to get the people in the store, and then sell them cases, chargers, extended warranties and other accessories that have a 10% or less COGS. But how am I going to get someone to accessorize a flat rate box? And that loss-leader iPod isn't taking sales away from some other MP3 player in the store.

If the flat rate box is going to have a sales price point of $12, I need to get at LEAST $9 of that $12 for it not to adversely affect my business. And I'm not going to help promote it unless I get at least $11 of that $12.

I guess the only solution would be to take a credit card when you take a third party account number to ensure payment.

So what are the odds that someone making unauthorized use of a UPS account number is going to be giving me a valid credit card? And do you know the cost of complying with laws regarding keeping someone's credit card info on file?

If they're going to do a lot of traveling, they should order some ASD's preprinted with their account number to take along with them. Or they can just pay for their shipping like any other business expense. They don't get to use an account number at the restaurants they eat at. They use a credit card that's paid by the company, or they use a personal credit card, and put it on their expense account. Or they can set people up with Campus Ship, and they can print their own labels when they need them. They have lots of options already.

 

[Braveheart]

Just happened to see a memo lying around that we are testing a new flat rate box in certain markets. Does anyone have anymore info on this? Cost? Size? Hopefully it will compete with post office and they will have it system wide before peak.

I have been saying we needed these flat rate boxes for over 15 years. I also said like almost 20 years ago that we needed our own stores and a freight division. I was told I did not understand UPS.

Now who is clueless?

But let the post office beat us to it. Pathetic!

Hope we do it.

 

[soberups]

I have a bunch of machine shops on my route that make brass and stainless steel fittings and nozzles for the dental industry. On many occasions I have delivered flat-rate boxes to them that weighed 80 or 90 lbs. The damn things are brutal, they are so small that picking one up off the floor is like trying to pry a manhole cover out of the road. They will crush your fingers or toes.

 

[Nimnim]

I have a bunch of machine shops on my route that make brass and stainless steel fittings and nozzles for the dental industry. On many occasions I have delivered flat-rate boxes to them that weighed 80 or 90 lbs. The damn things are brutal, they are so small that picking one up off the floor is like trying to pry a manhole cover out of the road. They will crush your fingers or toes.

As an irreg driver, I get a special joy from those things. That and high quality magnets. Though I guess flat rate boxes are bad for me, under 70 in those and I don't touch em. Guess I'll have to live with the fools sending singles brooms and yardsticks to keep me in business.

 

[upssalesguy]

I have a bunch of machine shops on my route that make brass and stainless steel fittings and nozzles for the dental industry. On many occasions I have delivered flat-rate boxes to them that weighed 80 or 90 lbs. The damn things are brutal, they are so small that picking one up off the floor is like trying to pry a manhole cover out of the road. They will crush your fingers or toes.

i wonder what UPS will do to charge people if the boxes go over 70 lbs? that is a another good question. that being said, I wonder if we announce these things when we announce our rate increase?

It appears some customers in my district are starting to ask about them. I'm excited to have a new product FedEx does not have - been a while since we have had a competative advantage. You drivers are so expensive federal has been able to buy our boarderline profitable business and still make money on it.

 

[BrownArmy]

You drivers are so expensive

We're as expensive as you sales guys are useless.

 

[stevetheupsguy]

We're as expensive as you sales guys are useless.

Ouch!

 

[CFMPprincess]

all i can remember from the memo is that it's being tested in AZ and Raleigh, NC. 2 sized boxes that are competitively priced with USPS. no tracking and no guaranteed tnt.

 

[tourists24]

i wonder what UPS will do to charge people if the boxes go over 70 lbs? that is a another good question. that being said, I wonder if we announce these things when we announce our rate increase?

It appears some customers in my district are starting to ask about them. I'm excited to have a new product FedEx does not have - been a while since we have had a competative advantage. You drivers are so expensive federal has been able to buy our boarderline profitable business and still make money on it.

At least we are worth what we are being paid. Cant say the same for sales guys

 

[MrFedEx]

We're as expensive as you sales guys are useless.

Good one. Our salespeople give our customers pickup times at 1815. Problem is, that's when the airplane leaves for Memphis. Uh-oh.

 

[upssalesguy]

you all are so ing predictable. did you see the or do you just not know how to read into sarcasm. you "being paid what you are worth" is going to bankrupt this company. we lose buiness to fedex, you lose drivers.

i am paid compensation on my sales plan, so I am paid what I am worth. Now go drive a ing truck and deliver the packages as instructed. work hard so the guy next to you doesnt have to. Protect the union! Management is worthless! Sales people do nothing all day! etc, etc, etc

 

[BrownArmy]

you all are so ing predictable. did you see the or do you just not know how to read into sarcasm. you "being paid what you are worth" is going to bankrupt this company. we lose buiness to fedex, you lose drivers.

i am paid compensation on my sales plan, so I am paid what I am worth. Now go drive a ing truck and deliver the packages as instructed. work hard so the guy next to you doesnt have to. Protect the union! Management is worthless! Sales people do nothing all day! etc, etc, etc

I am 100% positive that I could not do your job.

I am also 100% positive that you could not do my job.

Stalemate.