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<blockquote data-quote="dannyboy" data-source="post: 904142" data-attributes="member: 484"><p>More</p><p></p><p>I hate to post this, but Klein is somewhat correct.</p><p></p><p>The base rate increase is 4.9%. But the real world costs that the customer will see is closer to 6-7% increase in their delivery charges.</p><p></p><p>Kinda like the wage costs for a driver making $30 an hour is $62 grand and change. The articles you linked to are that figure. That is the basic cost. But when you add employer costs, overtime etc, the driver actually costs UPS closer to $125-140 grand. That is the "true costs" of having that employee.</p><p></p><p>So while you are technically correct, Klein is posting the true costs when all the basic costs are added to the surcharges.</p><p></p><p>That being said, Klein, why should UPS not follow the industry norm of charging fuel surcharges based on the price of fuel? Again, you dont have a clue on business.</p><p></p><p>UPS has to produce a certain percentage of proffit on each delivery. That proffit is the rates charged a customer, and the other rates charges they are entitled to. That whole rate structure allows the company to remain profitable. The last thing UPS wants to do is cut it so close that without the rate increase, we end up belly up.</p><p></p><p>So while they might not need it as much as other companies, they charge the surcharge because it is expected by the customer and it adds to the bottom line.</p><p></p><p>d</p></blockquote><p></p>
[QUOTE="dannyboy, post: 904142, member: 484"] More I hate to post this, but Klein is somewhat correct. The base rate increase is 4.9%. But the real world costs that the customer will see is closer to 6-7% increase in their delivery charges. Kinda like the wage costs for a driver making $30 an hour is $62 grand and change. The articles you linked to are that figure. That is the basic cost. But when you add employer costs, overtime etc, the driver actually costs UPS closer to $125-140 grand. That is the "true costs" of having that employee. So while you are technically correct, Klein is posting the true costs when all the basic costs are added to the surcharges. That being said, Klein, why should UPS not follow the industry norm of charging fuel surcharges based on the price of fuel? Again, you dont have a clue on business. UPS has to produce a certain percentage of proffit on each delivery. That proffit is the rates charged a customer, and the other rates charges they are entitled to. That whole rate structure allows the company to remain profitable. The last thing UPS wants to do is cut it so close that without the rate increase, we end up belly up. So while they might not need it as much as other companies, they charge the surcharge because it is expected by the customer and it adds to the bottom line. d [/QUOTE]
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