4/1/10 Fed Gov makes the move to UPS

[browndude]

No, I was just saying the stockmarket didn't react to the news. In September all stocks rebounded.
If it was a major factor, don't you think Fedex Stock would have went down on the news, of loosing the GSA contract ?

I agree with you, probably good volume.... but not a major money maker, by all means.
Might even be a huge challenge for UPS, to underbeat Fedex by 1 Billion dollars in a 5 year term ($20 million per year, cheaper then fedex).???

uhhhh where i went to school 1 billion dollars over a 5 year term would be $200 million per year not 20 million

 

[klein]

uhhhh where i went to school 1 billion dollars over a 5 year term would be $200 million per year not 20 million

Opps, probably too green (from green beer) already.... that is a lot of money !

 

[JonFrum]

Famous last words of many a business person:

"Sure we'll loose money on every unit we ship; But we'll make it up in Volume!"

 

[trplnkl]

I think it's ironic, if we lose a customer to Fedex because we decided not to go lower then them, people think the company is stupid for not matching rates. If we give a larger discount then FDX did, then we are stupid for giving to much away and losing money on the account. Isn't it possible, that a company that has been around for over 100 years, and makes money (even in this last\current recession) does the right thing occasionally?

It would only be ironic if it was the same people making both objections. Not everyone has the same opinion. DUH.

 

[happybob]

Maybe there is a corolation with whos running the ship in D.C. now. Under the previous republican administration the contract went with nonunion fedex and now its with the union carrier. Could it be that the democrats are taking care of their core suport base?

 

[TheDick]

Hey Fred S?! Suck it. Suck it dry!

 

[Signature Only]

Six percent less from what price range. I can't imagine the government negotiating from the same rates that fdx would have charged a corporate customer. I would think there is still a lot of profit to work with here.

anyone want to crunch the numbers on a contract where six percent over five years equates to a billion dollars?

I've never known UPS to take on a revenue losing shipping contract. They let 2 shippers go last year because matching Fedex was too expensive.

 

[TheDick]

We lost a 800,000 shipper cuz FDX gavem a ground agreement 100,000 cheaper than us. They'll be back.

 

[Dustyroads]

One other factor that enters into an effective analysis of profit on a package involves where the package is being shipped, specifically to what kind of business. UPS delivers to most Federal offices every day, at least in our center, nearly every office in the Federal building has packages every day. To add other pieces to the current volume going to those addresses may involve more costs with pickup and transportation to the delivery center, but the cost of going to the delivery location is pretty much nill, since we go there every day. I'm pretty sure that more volume going to places we already usually deliver is a good thing.

 

[dcdriver]

Some pickups went live today. Pickup 82 pkgs from one federal building today. Total of 3 pickups all NDA's.

 

[Just_another_day_at_work]

Yes. When those customers are going to see the scheduled delivery date few days later (if they lucky) than ours.

 

[happybob]

Just curious. Wasn't the old adage that for every additional 70 packages added to the system it would corrrolate to an additional job created?

 

[BLACKBOX]

I'm wondering if Fred S is finally seeing the writing on the wall? If he loses this FAA re-authorization he will not be able to handle major accounts without incurring a lost.

My take? You'll see major account changes if this decision favors us. When that happens, it will be a great time time to put the screws to the purple and orange.

 

[browned out]

There are a lot of good people over there even though they wear the purp and orange. They just need a little more pay and a lot more parcels on their trucks.

Put the screws to the screwer who is known as Mr Fred S as in Mr Smith tries to buy Washington.

 

[blue efficacy]

I've never known UPS to take on a revenue losing shipping contract. They let 2 shippers go last year because matching Fedex was too expensive.

Sorry to be nitpicky but an account will never decrease revenue unless we are paying them to ship their goods.

It will however lose us profit.

 

[Signature Only]

Sorry to be nitpicky but an account will never decrease revenue unless we are paying them to ship their goods.

It will however lose us profit.

Sorry... By revenue I meant net profit.

 

[JonFrum]

Just curious. Wasn't the old adage that for every additional 70 packages added to the system it would corrrolate to an additional job created?

Yeah. I always wondered where they got that figure.

Wouldn't each package have to cost about $2,000 to ship to cover the wages, benefits, and overhead of a full-time position?

 

[beentheredonethat]

they mean an additional 70 pkgs per day creates a job per day.

 

[JonFrum]

they mean an additional 70 pkgs per day creates a job per day.

O I C

So when they said 70 packages, they meant to say 17,500 packages. (70 packages per day times 250 working days in a year. Approximately.)

 

[hdkappler]

Kinda early for april fools jokes eh?

it's like fedxand ups have merged also.now it's called fed up.april fools jokes a little early.