Any one out there a customer account executive?

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dannyboy

Guest
If so I have some questions. Like how does Fedex give overnight service to mexico for less than we would charge going ground? I have been following a sales lead now for the last 2 years, and there should be no way they could beat our rates, but they do. And this company has a ton of letters coming from all over, esp the pacific rim nations. I just dont think the exec in our area is trying very hard to get the business.

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tieguy

Guest
Lower wage rates and contracters. The contractor system is saving Fedex a ton of money in equipment and labor costs.
 
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dannyboy

Guest
But we work harder and smarter! So while that might be the easy answer, I think there is something else. The shipping manager tells me what they are paying and what they get billed. Our account Exec tells me completely different #'s, usually 30-45% of what the shipping manager says they get billed. So what gives?

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PS Tie, It might also be that from the last stats I got, Fedex had 12 employees for every management, while we have only 7 per management.
YA think?
 
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brownmonster

Guest
We had a guy with a Tie and a clipboard standing around the last two mornings. I'm sure that was a better use of funds than a well paid driver busting his hump!
 
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tieguy

Guest
"PS Tie, It might also be that from the last stats I got, Fedex had 12 employees for every management, while we have only 7 per management.YA think?"

Don't know where you came up with the ratio. Looking at the contractor system I think theres definitely a big cost advantage involved. No drivers on thier payroll( no pay, no beni's, no SS etc) No trucks, no feeders and no trailers to buy. Less maintenance, less mechanics. No feeder sups, managers and region level managers. There has to be a huge cost savings involved.
 
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dannyboy

Guest
There is, no doubt about it. But we are not talking FDX ground here.

WE are talking they will have it there via their over night system, versus our ground. And they can do it cheaper? Gimme a break! The FEDEX drivers do not buy their own trucks, they make close to what we make, and they have to run planes just like we do. So what gives then?

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upsdawg

Guest
It could be that this company is part of a national account and maybe because of sheer volume, and the fact that FDX costs are much lower than ours they can price their service below ours.

They do price some of their services to the point that it is lees for a customer to send air with FDX than it is to send ground with us.

We could beat anybody's rates---but when wwe price it below our actual cost---than we open ourselves up to something called Predatory Pricing.

Bottom line------keep our cost low and our service level high!!
 
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