Smartpost integration

Discussion in 'FedEx Discussions' started by It will be fine, Aug 29, 2016.

  1. It will be fine

    It will be fine Well-Known Member

    I'm probably a little behind but I just saw the post on mygroundbiz about the close proximity smartpost integration. Is anyone in or know someone in the 19 test markets? I'm curious how low of a rate they plan on offering for delivering the stops we're not going to already.
     
  2. bacha29

    bacha29 Well-Known Member

    You've been at this a long time. Enough to know that since " you're going that way" they'll throw it on and in fact expect you to do it for nothing with no adjustment in your revenue stream until it's time to 'negotiate" another contract.
     
  3. Exec32

    Exec32 Member

    Don't sign the addendum. The addendum hasn't come out yet, but is soon to follow.
     
  4. Exec32

    Exec32 Member

    X SAYS; Because new SmartPost-only stops are to be in close proximity to existing Ground or Home Delivery stops, the density in the area may increase. Based on this, X anticipates this incremental volume will generate opportunity for additional revenue (boat loads of cash),without significant time and cost (for you lazy undeserving contractors)....
    In other words do more for less!
    Here is what X left out;
    X knows you have to do what X says because you don't have anyone else paying you.
    Next up;
    X has determined it cost you more to service oversize boxes, and the often very rural stop, so this increased cost will be reflected in the stop increased rate.
    Oops,,, forgot don't work both ways. Just joking "independent contractor" love X.
    LOL.
     
  5. It will be fine

    It will be fine Well-Known Member

    I can't see this working out well. For it to make sense for fedex they would be paying us less than postage rate. I read somewhere their average cost for smartpost was $1.15/package. If they are offering less than that I don't care how dense an area is, you're not making money.
     
  6. bacha29

    bacha29 Well-Known Member

    Don't lose sight of the fact that they are the world's most city minded company. They think the whole world is a city. If the contractors out in the rurual areas have to haul Smartpost they have no chance of survival.
     
  7. 12yearsaslave

    12yearsaslave Member

    According to the The Wall Street Journal, “Analysts estimate Amazon pays about $2 to mail a package via the Postal Service.” that's from a 2014 article.
    I would assume we will be below that mark to stay competitive.
     
  8. bacha29

    bacha29 Well-Known Member

    See what i mean about hauling it for nothing or next to it and you ground guys won't like every other time you won't be given a choice. There is no question that there will be soon be heavy pressure on your margins if it isn't already ongoing.
     
  9. FedEx GT

    FedEx GT Active Member

    Funny how that announcement came just 3 weeks after the terminals had a meeting saying we will only get these packages if we are already going to said location. Didn't even go a month before backtracking on that one.

    It will be next to nothing. I already posted this prior but this is what they have started doing.
     

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  10. FedEx GT

    FedEx GT Active Member

    Deliver 80 smart post packages got paid for 4 large oversized packages. Been doing it now for a couple weeks.
     
  11. It will be fine

    It will be fine Well-Known Member

    We've been doing that for years here. Any small post office gets all their smartpost delivered to them that way. Now that we can scan their barcodes sometimes boxes fall out of those bags and accidentally get delivered by my guys.
     
  12. Exec32

    Exec32 Member

    S
     
  13. robdabanks

    robdabanks Member

    I been getting the same thing, but mine has 50 small boxes in them. But I do get about 5 back the next day that aren't theirs, so I scan them as individual pickups. Screw them!
     
  14. FedEx GT

    FedEx GT Active Member

    I know that post office gets them this way but this is going to one of my large bulk stops not a post office. Just a regular retail store.

    Used to get anywhere between 90-150 pieces there now get 50-80 with 4-6 bags of an extra 80-100+ smart post that I don't get paid for
     
  15. It will be fine

    It will be fine Well-Known Member

    That's bs but unfortunately not surprising.
     
  16. Cactus

    Cactus Just telling it like it is

    Also not surprising is that Fred's gonna expect you guys to handle all this stuff for no extra compensation.
     
  17. TUT

    TUT Well-Known Member

    I doubt it. But this is better news for Smart Post, it has been too unpredictable how they were injecting seemingly anywhere. I'm not sure it is enough yet, still seems too random. To ItWillBeFine, that's the unpredictable part of Smart Post, you say you've been doing that for years, but each area can have a different process on how packages move through your system and injected into USPS's.
     
  18. It will be fine

    It will be fine Well-Known Member

    So the rate I heard for this high density additional stop smartpost was around $1.50/stop give or take some pennies depending on your area. I don't think anyone is accepting it. Total garbage, there's no way to make money with a rate that low. I hope everyone declines across all the test stations.
     
  19. bacha29

    bacha29 Well-Known Member

    Six bits per stop ,huh?. Leave it on the dock. With the small but more numerous and less controllable single route contractors all gone the larger but powerless ISP's are now fair game for X .Rest assured future "negotiation"s" will no doubt result in a revenue package just enough to keep you above the grass but will no doubt come at the expense of your equity. I'm saying this to you as a friend. Don't stay in this too long. When the first unsuspecting slug comes along with an offer you can live with, take it.
     
  20. dmac1

    dmac1 Active Member


    $1.50 is 12 bits. Each bit is 1/8 of a $. 2 bits = 25 cents. $1.50 is a lot of money to some of these contractors. It's why they think they are rich. If $1.50 is a lot of money, making $30k a year makes them feel like Richie Rich.