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UPS before and after going public.
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<blockquote data-quote="pretzel_man" data-source="post: 1023601" data-attributes="member: 927"><p>DS,</p><p></p><p>I'm not sure I fully understand you point. Please help me understand....</p><p></p><p>Are you saying that we need to discount more? Do we discount below our cost to serve?</p><p></p><p>I know that Kurt Kuehn spoke of this last year I think. He mentioned we needed to agressively price, but NOT to irrationally price.</p><p></p><p>A problem is that we have a much higher cost to serve than competitors. I know you say that the current situation will kill UPS. I also think competing on price alone will also kill UPS.</p><p></p><p>We are not in a great situation because people want free shipping and shipping is not free. This reality leads to discount products like Surepost. I'd rather that those were UPS ground packages, but the customers want a low rate, no frills product..... And competitors are willing to give it to them.</p><p></p><p>This is why I say the issue is competition....</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 1023601, member: 927"] DS, I'm not sure I fully understand you point. Please help me understand.... Are you saying that we need to discount more? Do we discount below our cost to serve? I know that Kurt Kuehn spoke of this last year I think. He mentioned we needed to agressively price, but NOT to irrationally price. A problem is that we have a much higher cost to serve than competitors. I know you say that the current situation will kill UPS. I also think competing on price alone will also kill UPS. We are not in a great situation because people want free shipping and shipping is not free. This reality leads to discount products like Surepost. I'd rather that those were UPS ground packages, but the customers want a low rate, no frills product..... And competitors are willing to give it to them. This is why I say the issue is competition.... [/QUOTE]
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