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UPS blows a Major Fl account
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<blockquote data-quote="upsdawg" data-source="post: 88605" data-attributes="member: 2020"><p>Could it be that FedEx and DHL are able to offer much lower rates than UPS and customers are switching to them because they can save a substantial amount of money??</p><p></p><p>Because FedEx and DHL have lower costs due to lower wages and benefits--as in having non-union employees, thay can charge lower rates than UPS.If we drop our rates below our "Cost to Serve"----which includes our labor costs---we get sued for predatory pricing. If a customer 's characteristics are such that they are low weight and zone--and high cube (box size) and they have a negative claims history (due to the way that customer packs their merchandise)---we can't discount it enough to be competitive and have to walk away from a lot of business.DHL is buying our customers with offers such as, 90 day free shipping--not charging for o/s--os2/os3---and FedEx is great at offering low rates for ground just to attract the customers air/int'l packages( as in high revenue!)!!</p><p></p><p>And guess what--our competitors are aggressively pursuing customers with the scare that----UPS will be going on strike again--and don't put all of your eggs in one basket-----we won't be providing service to non _FedEx/DHL customers--so you better sign a contract now---and they want a 1 year committment of exclusivity!!</p><p></p><p>So there may be other factors involved with losing accounts------maybe even better time in transit for ground compared to UPS----remember Airborne/DHL has always targeted >5 lb packages and moved them in their 2 day system!! I just bought a new comforter from a shipper in N Hampshire--they used DHL--I tried to get them to use UPS----they said DHL doesn't charge O/S and I will have my package in 2 days for less money compared to higher rates with UPS and it would take 6 days to Calif( they would have paid a 30 lb rate with UPS and only charged 5 lbs with DHL)!!</p></blockquote><p></p>
[QUOTE="upsdawg, post: 88605, member: 2020"] Could it be that FedEx and DHL are able to offer much lower rates than UPS and customers are switching to them because they can save a substantial amount of money?? Because FedEx and DHL have lower costs due to lower wages and benefits--as in having non-union employees, thay can charge lower rates than UPS.If we drop our rates below our "Cost to Serve"----which includes our labor costs---we get sued for predatory pricing. If a customer 's characteristics are such that they are low weight and zone--and high cube (box size) and they have a negative claims history (due to the way that customer packs their merchandise)---we can't discount it enough to be competitive and have to walk away from a lot of business.DHL is buying our customers with offers such as, 90 day free shipping--not charging for o/s--os2/os3---and FedEx is great at offering low rates for ground just to attract the customers air/int'l packages( as in high revenue!)!! And guess what--our competitors are aggressively pursuing customers with the scare that----UPS will be going on strike again--and don't put all of your eggs in one basket-----we won't be providing service to non _FedEx/DHL customers--so you better sign a contract now---and they want a 1 year committment of exclusivity!! So there may be other factors involved with losing accounts------maybe even better time in transit for ground compared to UPS----remember Airborne/DHL has always targeted >5 lb packages and moved them in their 2 day system!! I just bought a new comforter from a shipper in N Hampshire--they used DHL--I tried to get them to use UPS----they said DHL doesn't charge O/S and I will have my package in 2 days for less money compared to higher rates with UPS and it would take 6 days to Calif( they would have paid a 30 lb rate with UPS and only charged 5 lbs with DHL)!! [/QUOTE]
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