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UPS Discussions
Could UPS deliver the mail?
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<blockquote data-quote="randomUPSISer" data-source="post: 664440" data-attributes="member: 24399"><p>I don't believe we'd have a flat rate letter anyway, if we if legally we could. By billing based on "flat rate" you get a huge profit margin on some shipments, and negative profit on others. (ie: losses) The hope is that the profits on the positives outweigh the negatives enough to where you end up with a good profit at the end of the day. </p><p></p><p>By billing based on distance, you can essentially ensure that you have a profit margin on EVERY shipment, regardless of if its across town, or across the country. </p><p></p><p>There's a reason we don't do flat rate in small package now, and it has nothing to do with legalities of it. As mentioned earlier in this thread, the USPS may just be subsidizing their "flat rate" with inflated letter charges?</p></blockquote><p></p>
[QUOTE="randomUPSISer, post: 664440, member: 24399"] I don't believe we'd have a flat rate letter anyway, if we if legally we could. By billing based on "flat rate" you get a huge profit margin on some shipments, and negative profit on others. (ie: losses) The hope is that the profits on the positives outweigh the negatives enough to where you end up with a good profit at the end of the day. By billing based on distance, you can essentially ensure that you have a profit margin on EVERY shipment, regardless of if its across town, or across the country. There's a reason we don't do flat rate in small package now, and it has nothing to do with legalities of it. As mentioned earlier in this thread, the USPS may just be subsidizing their "flat rate" with inflated letter charges? [/QUOTE]
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Could UPS deliver the mail?
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