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How can UPS survive ....
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<blockquote data-quote="Thebrowntruth" data-source="post: 103444"><p>Bob,</p><p>With all due respect did you ever hear of a company called REA? Railway Express Agency was the biggest around before some new upstart company started by a guy named Jim Casey kicked their collective butts awhile back. Please remember one quote from Mr Casey..."we go out of business every day". Think about it and realize its true. It can all end tomorrow for a service company like us and at the rate we are going it may someday happen. The world kept spinning when UPS was on strike and our competitors LOVED it. They continue to expand at a rate higher than us and that is the BIGGEST threat. </p><p>I hope everyone can see the formula here.</p><p>1.) UPS pays its employees (well at least mgmt and friend/T) the highest wage rates in the industry</p><p>2.) UPS drivers deliver more than their competitors so I have no problem with them earning the highest wages </p><p>3.) UPS has a higher delivery density than any competitor (we deliver more packages per mile)</p><p>4.) When the competiors increase their volume levels more their delivery density increases and our advantage decreases</p><p>5.) The decline will be a plummet when and if it happens. A higher delivery density for our competitors will have a dramatic increase on their profits while eliminating the sole reason we are able to load up our drivers and have them bust their butts to earn those highest wages.</p><p></p><p>Do the most and work harder then your competitors = the highest wages Its a pretty cool formula, i think its what makes us all capitalists!!!! I just hope the formula for delivery density doesnt go away</p></blockquote><p></p>
[QUOTE="Thebrowntruth, post: 103444"] Bob, With all due respect did you ever hear of a company called REA? Railway Express Agency was the biggest around before some new upstart company started by a guy named Jim Casey kicked their collective butts awhile back. Please remember one quote from Mr Casey..."we go out of business every day". Think about it and realize its true. It can all end tomorrow for a service company like us and at the rate we are going it may someday happen. The world kept spinning when UPS was on strike and our competitors LOVED it. They continue to expand at a rate higher than us and that is the BIGGEST threat. I hope everyone can see the formula here. 1.) UPS pays its employees (well at least mgmt and friend/T) the highest wage rates in the industry 2.) UPS drivers deliver more than their competitors so I have no problem with them earning the highest wages 3.) UPS has a higher delivery density than any competitor (we deliver more packages per mile) 4.) When the competiors increase their volume levels more their delivery density increases and our advantage decreases 5.) The decline will be a plummet when and if it happens. A higher delivery density for our competitors will have a dramatic increase on their profits while eliminating the sole reason we are able to load up our drivers and have them bust their butts to earn those highest wages. Do the most and work harder then your competitors = the highest wages Its a pretty cool formula, i think its what makes us all capitalists!!!! I just hope the formula for delivery density doesnt go away [/QUOTE]
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