Fedex goes out and targets the big shippers. They care nothing about the "mom and pop" shippers who send out 10 packages/week. They want the big shippers with trailer loads of volume. UPS knows that Fedex is constantly visiting the big accounts and trying to win them over.
UPS is not stupid (although that could be debated), they know that they have to keep the big shippers happy to remain profitable. Unfortunately keeping the big shippers happy sometimes hurts the small shippers.
That is why, when you turn in a sales lead, UPS calls and asks the customer how many packages/week they are going to ship. If the number is low, then it will be hard to get someone to even go out and see them. They are spending all their time trying to keep the big accounts happy, or win new ones.
So if UPS was just starting then they might make it if they went after the big accounts, paid there employees less, and had a huge sum of money in the bank.
UPS is profitable, and provides good service because of the infrastructure of hubs and centers that they have. They would have to start from scratch and build every center and sort facility, which would be very costly.
UPS is not stupid (although that could be debated), they know that they have to keep the big shippers happy to remain profitable. Unfortunately keeping the big shippers happy sometimes hurts the small shippers.
That is why, when you turn in a sales lead, UPS calls and asks the customer how many packages/week they are going to ship. If the number is low, then it will be hard to get someone to even go out and see them. They are spending all their time trying to keep the big accounts happy, or win new ones.
So if UPS was just starting then they might make it if they went after the big accounts, paid there employees less, and had a huge sum of money in the bank.
UPS is profitable, and provides good service because of the infrastructure of hubs and centers that they have. They would have to start from scratch and build every center and sort facility, which would be very costly.