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Brown Cafe UPS Forum
UPS Union Issues
Comparison: Last, Best & Final to Pre-strike proposals
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<blockquote data-quote="brownIEman" data-source="post: 1026947" data-attributes="member: 14596"><p>I believe the numbers used to calculate market share do include surepost. In fact, those packages would actually sort of "double dip", as UPS would report them in its daily delivery volume numbers, since we do indeed deliver them to the post office. The USPS would also count them, as they deliver to final consignee. The end effect should be a wash or close to it.</p><p></p><p>You are absolutely correct, the small package market has grown incredibly due to the massive change in retail from the internet, and other factors. The pie has grown tremendously. So much so that even though our piece is only 50% now compared to 80%, that 50% piece is a much larger total. Which is fine for now. But what happens if the growth in the market slows and our percentage continues to decline? It also does not matter how big the pie gets, if our percentage of it drops to zero. The company saw this a long time ago. I remember being in a meeting in 1995 discussing cost cutting measures such as consolidating the CSTC's (Customer Service Telephone Centers) from one in each district to one or two for the entire country. They talked about how we were becoming the high cost provider, and losing market share, and had to control the growth of costs.</p><p></p><p>Cost vs service causing the loss of market share is a good question and one very difficult to answer. I can say that our total service numbers to our customers have not been much better over all than they are now, and are in most cases on par or better than our competition. I also know that most of our customers who leave us cite price as the largest issue on picking a competitor. My estimation is that while our inability to be competitive on price is not the only reason we are losing ground in market share, it is the single largest.</p><p></p><p>I absolutely do not blame the 30% loss of market share solely on the 1997 contract. But UPS was unable to stem the rising cost of what is, and absolutely should be, our largest expense- the labor costs. So I would consider it a major factor.</p></blockquote><p></p>
[QUOTE="brownIEman, post: 1026947, member: 14596"] I believe the numbers used to calculate market share do include surepost. In fact, those packages would actually sort of "double dip", as UPS would report them in its daily delivery volume numbers, since we do indeed deliver them to the post office. The USPS would also count them, as they deliver to final consignee. The end effect should be a wash or close to it. You are absolutely correct, the small package market has grown incredibly due to the massive change in retail from the internet, and other factors. The pie has grown tremendously. So much so that even though our piece is only 50% now compared to 80%, that 50% piece is a much larger total. Which is fine for now. But what happens if the growth in the market slows and our percentage continues to decline? It also does not matter how big the pie gets, if our percentage of it drops to zero. The company saw this a long time ago. I remember being in a meeting in 1995 discussing cost cutting measures such as consolidating the CSTC's (Customer Service Telephone Centers) from one in each district to one or two for the entire country. They talked about how we were becoming the high cost provider, and losing market share, and had to control the growth of costs. Cost vs service causing the loss of market share is a good question and one very difficult to answer. I can say that our total service numbers to our customers have not been much better over all than they are now, and are in most cases on par or better than our competition. I also know that most of our customers who leave us cite price as the largest issue on picking a competitor. My estimation is that while our inability to be competitive on price is not the only reason we are losing ground in market share, it is the single largest. I absolutely do not blame the 30% loss of market share solely on the 1997 contract. But UPS was unable to stem the rising cost of what is, and absolutely should be, our largest expense- the labor costs. So I would consider it a major factor. [/QUOTE]
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Comparison: Last, Best & Final to Pre-strike proposals
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