Ground doesn't undercut UPS on prices. They stay in step with them and pocket the difference. It's why the Ground infrastructure is better than UPS. It's newer and our trucking lanes are faster. Ground takes market share because it provides a better service, not because it's cheaper.
If all of that is true, why aren't the volumes flipped.
That may be true, but I suspect that's because if they undercut UPS enough their system would be overwhelmed. I doubt very seriously Ground's infrastructure is as large as already very well established UPS. Don't be surprised as Ground's system grows that it will ultimately charge less to wrest away UPS customers. Much of the bulk Ground transports now used to be carried by Express. And a senior mgr once showed in a meeting how Ground prices compared with UPS. It was less. Makes a difference to high volume shippers.
The base rate of UPS and FXG are about the same. The difference is in the discount off the base rate and who will offer the biggest. One practice UPS has been known for doing is to literally buy the business as was the case a few years back when they walked into LLBean and offered 8 million in cash for Bean's business.
Can I conclude you agree with IWBF's statement then, and the only reason volumes aren't flipped is because UPS is buying customers. If that is a wrong conclusion, please address all of his claims.
Many factors go into such a decision. Past performance, capacity, volume discounts . oversize and over weight charges, hazmats shipping lanes and how long it takes to get to where it's going. Many factors not just price along goes into the decision but price always get their attention first. Playing UPS and XG off against one another has always been at the heart of the game. And if there's a particular shipper's business UPS has targeted they won't stop at buying it if they can.
Source please. And it was in 2009.
Source..... disclosed during a meeting with the regional manager when LL Bean business suddenly disappeared . I said a " few years back." Now let' s see what you have to bring to the discussion. Should be quite a bit despite the fact that you're over at Express.
I think Ground grows as fast as they want it to. The infrastructure may not be as large as UPS but it is newer. Ground has more automated buildings and they run much less volume on the rails. UPS had a pretty big head start for market share, but every year Ground closes the gap. They could easily undercut UPS and still make a profit, but like you said, that would overwhelm the network. It's better to grow at a reasonable pace and maintain service levels.
That's called hearsay. Try again.
How can you dismiss something as hearsay when you weren't there? Those comments were for the record. Knowing the RM I can telling you one thing. If you had been there and in essence called him a liar he would have first performed some rectal reconstruction on you followed by the immediate termination of your contract.
I don't have to have been there. Your quoting so-and-so is the classic definition of hearsay. If you can't provide a verifiable source, all you are providing is rumor and innuendo. Try again.
I think the standard rates are always about the same. Like someone else said, it comes down to the discount offered.
Remember one thing. it's up to DISPROVE it not merely dismiss it. Look based on your prior comments it would appear that you like some others have always had a foreign object lodged in your feces discharge portal over the acquisition of the former Roadway Package System. Yes it is a poor setup and you might call it amateurish and unprofessional but it does a pretty good job of competing in it's market. Now it's not going away and the reason it's not going away is because IT"S DAMN PROFITABLE. It's profitability and good performance despite it's low wage scale is why it's capex budget will remain well funded going forward. And most importantly it's profitability will continue to be a stabilizing influence when it comes to keeping your pension plan solvent in the days ahead.
I think it really depends on the shipper. X is pretty straightforward about not wanting Amazon for what Amazon wants to pay.
And exactly WHAT does your diatribe have to do with $8M in cash that UPS paid LLBEAN, per your conjecture. One last chance to provide a verifiable source. C'mon, you can DO it.
So UPS might was well went to LL Bean and say "we will ship all your stuff for free for the next 6 months" and then pull up trailers and start loading them. I mean if you're going to pay someone $8 million for their business, it's going to take a long time to make that back up. Instead of offering cash, just offer to haul everything for no charge for the next 6 months to a year.
I really don't have to verify or collaborate anything especially for the likes of you but given that in your case diminishing mental capacity could be the issue here I will try break it down still further if I can.
Your diversionary tactics are entertaining, but not pertinent.
