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<blockquote data-quote="beentheredonethat" data-source="post: 701940" data-attributes="member: 4886"><p>Browned out, </p><p></p><p>You mention false fear of competition, Uh oh; look out for RPS... Well we should, just because FDX bought them, doesn't mean that RPS "went away". It's still here just rebranded, and they pull in 1.8 Billion a quarter of revenue. That's about 7 -8 Billion dollars of revenue a year at 10/pkg that's 700-800 million pkgs that would most likely be UPS and Teamster pkgs. We didn't have our eye on the ball, and they took advantage. Our biggest mistake back when RPS started is that we had one set of rates for everybody. RPS realized certain pkgs are way more profitable then others and targeted those pkgs. If we had raised the overall rates and then discounted the desirable packages as we do now, then they wouldn't have been able to take advantage of that weakness and that competitor probably wouldn't have existed at all. </p><p></p><p>Here's another News flash, the post office doesn't have to make money. So what if they lose money, They have no shareowner to report to. The government won't let it go under and they couldn't afford to fire all the USPS folks for fear of losing hundreds of thousands of votes. </p><p></p><p>DHL did leave the domestic market, but only because their shareowners didn't want to lose money continually. They could have afforded to stay a few more years. If they had spent the money on infrastructure first and gotten good service then went after the market share, they would have survived. </p><p></p><p>Also, even if FDX classified their ground contractors as employees, they would still exist, they may get hindered by a higher cost, but they have a lower cost structure now. If the ground contractors demanded to much to make FDX ground go under, then everyones out of a job. That just won't happen. </p><p></p><p>Also, FDX Ground has been FDX Ground (not RPS) for over 12 years. And had existed for quite a while before that as RPS. So many vehicles are old in their fleet. Even if a contractor can't make it, he sells his route, or leaves and FDX recruits someone else to do it.</p></blockquote><p></p>
[QUOTE="beentheredonethat, post: 701940, member: 4886"] Browned out, You mention false fear of competition, Uh oh; look out for RPS... Well we should, just because FDX bought them, doesn't mean that RPS "went away". It's still here just rebranded, and they pull in 1.8 Billion a quarter of revenue. That's about 7 -8 Billion dollars of revenue a year at 10/pkg that's 700-800 million pkgs that would most likely be UPS and Teamster pkgs. We didn't have our eye on the ball, and they took advantage. Our biggest mistake back when RPS started is that we had one set of rates for everybody. RPS realized certain pkgs are way more profitable then others and targeted those pkgs. If we had raised the overall rates and then discounted the desirable packages as we do now, then they wouldn't have been able to take advantage of that weakness and that competitor probably wouldn't have existed at all. Here's another News flash, the post office doesn't have to make money. So what if they lose money, They have no shareowner to report to. The government won't let it go under and they couldn't afford to fire all the USPS folks for fear of losing hundreds of thousands of votes. DHL did leave the domestic market, but only because their shareowners didn't want to lose money continually. They could have afforded to stay a few more years. If they had spent the money on infrastructure first and gotten good service then went after the market share, they would have survived. Also, even if FDX classified their ground contractors as employees, they would still exist, they may get hindered by a higher cost, but they have a lower cost structure now. If the ground contractors demanded to much to make FDX ground go under, then everyones out of a job. That just won't happen. Also, FDX Ground has been FDX Ground (not RPS) for over 12 years. And had existed for quite a while before that as RPS. So many vehicles are old in their fleet. Even if a contractor can't make it, he sells his route, or leaves and FDX recruits someone else to do it. [/QUOTE]
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