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<blockquote data-quote="MrFedEx" data-source="post: 1069946" data-attributes="member: 12508"><p>I am well aware that the ground package market dwarfs the overnight market. I have also worked for UPS and know more than you probably think I do. Express employees are pissed because they know the Express product is being undersold. I also know account reps, and have coffee with one monthly. He freely admits that they are being told to push Ground over Express. </p><p></p><p>There is one big reason for this...the much lower cost structure at Ground that allows a much higher profit percentage per package. Ground is a scam, pure and simple. If Fred S had to play by the same rules as UPS, Ground would be much more expensive, and Express would be a viable option for many customers (XS and E2). </p><p></p><p>Both FedEx and UPS are systems integrators, something I've been telling people here for several years. As you said, they both offer a wide range of transportation services. It's also true that customers ultimately choose the level of service, but when your Sales team is told to up-sell only one aspect of those services, the othet opcos suffer. Such is the case with Express.</p><p></p><p>Take away Fred's contractor scam, and Express rebounds substantially, but that won't happen. Why? Because Fred will shift as much of the Express product line to Ground as he can, in order to benefit from the money he saves with his Indentured Servitude Plan (ISP). UPS drivers will be making around $30 per hour (with excellent benefits) under the next contract. Compare that to the Ground driver making $10-$12 per hour or on a flat, <strong>low, </strong>salary with zero benefits. This is the Ground "advantage".</p><p></p><p></p><p>FedEx has moved-on, and forgotten it's loyal employees in the process. Watch what happens if and when Ground is forced to abandon it's current structure, which is a very good possibility.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 1069946, member: 12508"] I am well aware that the ground package market dwarfs the overnight market. I have also worked for UPS and know more than you probably think I do. Express employees are pissed because they know the Express product is being undersold. I also know account reps, and have coffee with one monthly. He freely admits that they are being told to push Ground over Express. There is one big reason for this...the much lower cost structure at Ground that allows a much higher profit percentage per package. Ground is a scam, pure and simple. If Fred S had to play by the same rules as UPS, Ground would be much more expensive, and Express would be a viable option for many customers (XS and E2). Both FedEx and UPS are systems integrators, something I've been telling people here for several years. As you said, they both offer a wide range of transportation services. It's also true that customers ultimately choose the level of service, but when your Sales team is told to up-sell only one aspect of those services, the othet opcos suffer. Such is the case with Express. Take away Fred's contractor scam, and Express rebounds substantially, but that won't happen. Why? Because Fred will shift as much of the Express product line to Ground as he can, in order to benefit from the money he saves with his Indentured Servitude Plan (ISP). UPS drivers will be making around $30 per hour (with excellent benefits) under the next contract. Compare that to the Ground driver making $10-$12 per hour or on a flat, [B]low, [/B]salary with zero benefits. This is the Ground "advantage". FedEx has moved-on, and forgotten it's loyal employees in the process. Watch what happens if and when Ground is forced to abandon it's current structure, which is a very good possibility. [/QUOTE]
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