Is UPS pricing themselves out of customers?

[reginald95]

Had a chat with a customer today who was a regular pickup with UPS but now they have dropped us for FedEx. Their main reason was the increase in rates. I noticed this with other routes I've covered who have switched to FedEx. With Surepost, Ontrac, Amazon, Lasership, FedEx, DHL, it's no longer about the best service but the cheapest.

 

[Catatonic]

The cost of friend/T Drivers is the crux of the rate increases.

 

[realbrown1]

Had a chat with a customer today who was a regular pickup with UPS but now they have dropped us for FedEx. Their main reason was the increase in rates. I noticed this with other routes I've covered who have switched to FedEx. With Surepost, Ontrac, Amazon, Lasership, FedEx, DHL, it's no longer about the best service but the cheapest.

I picked up a major UPS account today and they asked for me to wait for them to finish one last package.

A 15lb. semi-large box going to SF from SoCal.

$14.

The big shippers must get a great deal.

That same package would be $45 at a UPS customer counter.

 

[rod]

I don't know how these companies that offer free shipping do it. I bought an electric jack for my toy hauler the other day in between free shipping and no sales tax I saved right at a hundred bucks over what it would have cost me to buy a comparable one at one of the local RV dealers.

 

[rod]

The cost of friend/T Drivers is the crux of the rate increases.

You're funny----the last I checked friend/T management made more---lets start out with that big multimillion dollar raise the CEO got not too long ago.

 

[Jackburton]

The cost of friend/T Management to recite reports like parrots is the crux of the rate increases.

FIFA

 

[jaker]

Ink and paper is the reason cost is going up

 

[Mugarolla]

You're funny----the last I checked friend/T management made more---lets start out with that big multimillion dollar raise the CEO got not too long ago.

And the $1B they spent on ORION. And it doesn't even work!

 

[slappyhappy]

Gotta fund the bull$#!t known as Orion somehow.

 

[retiredTxfeeder]

I shipped a 1 lb package ground to my daughter from Houston to Dallas a while back. Didn't insure it. It was $17 frickin dollars. Maybe stuff costs more because it was a UPS store. They did charge me several fees over and above the regular shipping cost. I think one was a fuel surcharge and the other was a residential fee. I couldn't believe it.

 

[Johney]

I shipped a 1 lb package ground to my daughter from Houston to Dallas a while back. Didn't insure it. It was $17 frickin dollars. Maybe stuff costs more because it was a UPS store. They did charge me several fees over and above the regular shipping cost. I think one was a fuel surcharge and the other was a residential fee. I couldn't believe it.

You of all people shouldn't complain one friggin bit about shipping charges.........you know dam well how much money the feeder dept waste's......shame on you. Gotta make it up somehow, can only beat up the package guys so much.

 

[UpstateNYUPSer(Ret)]

I shipped a 1 lb package ground to my daughter from Houston to Dallas a while back. Didn't insure it. It was $17 frickin dollars. Maybe stuff costs more because it was a UPS store. They did charge me several fees over and above the regular shipping cost. I think one was a fuel surcharge and the other was a residential fee. I couldn't believe it.

The rates at the UPS Store are supposed to be the same as our customer counter. The fuel and residential surcharges are both standard on most shipments.

We are not the cheapest alternative by any means.

 

[DOK]

The rates at the UPS Store are supposed to be the same as our customer counter. The fuel and residential surcharges are both standard on most shipments.

We are not the cheapest alternative by any means.

How does the ups store make it's money?
Not to hijack a thread, just curious.

 

[box_beeyotch]

How does the ups store make it's money?
Not to hijack a thread, just curious.

I worked at one when I was a local sorter.They make most of their money by doing print jobs and creating signs/banners. They recieve a dollar for every UPS package that is dropped off to their location also.

 

[scratch]

I deliver to a Fedex Home Delivery contractor who owns three routes. He pays his drivers ten bucks an hour with no benefits. Simple math there, most people don't care about better service. Of course with ORION now, better service seems to be a thing of the past.

 

[ISC]

How does the ups store make it's money?
Not to hijack a thread, just curious.

They get like a 40% discount with their UPS account but they charge standard price to customers

 

[worldwide]

I picked up a major UPS account today and they asked for me to wait for them to finish one last package.

A 15lb. semi-large box going to SF from SoCal.

$14.

The big shippers must get a great deal.

That same package would be $45 at a UPS customer counter.

According to the rate calculator at ups.com, your Customer Center rate quote is way off. Unless you saw the invoice from UPS for this package you quotes, you have no idea what the shipper actually paid UPS - the invoice includes the net rate the customer pays. $14 is likely the rate that was displayed on the shipping system that may include a customer "shipping & handling" charge.

The UPS published rate for a 15-lb ground commercial package going from SF to LA is:

Daily pickup - $11.63
Customer Center/The UPS Store - $16.11

The above rates include the fuel surcharge and an assumed package size of 13 x 13 13.

The competition charges:
USPS Priority Mail - $10.07
On Trac - $11.57
FedEx Ground - $11.63

 

[realbrown1]

According to the rate calculator at ups.com, your Customer Center rate quote is way off. Unless you saw the invoice from UPS for this package you quotes, you have no idea what the shipper actually paid UPS - the invoice includes the net rate the customer pays. $14 is likely the rate that was displayed on the shipping system that may include a customer "shipping & handling" charge.

The UPS published rate for a 15-lb ground commercial package going from SF to LA is:

Daily pickup - $11.63
Customer Center/The UPS Store - $16.11

The above rates include the fuel surcharge and an assumed package size of 13 x 13 13.

The competition charges:
USPS Priority Mail - $10.07
On Trac - $11.57
FedEx Ground - $11.63

It was 2 to 3 rimes the size of 13 x 13.

 

[realbrown1]

The cost of friend/T Drivers is the crux of the rate increases.

Or maybe too many managers.

I mean wtf do they do after we leave the building?

 

[retiredTxfeeder]

You of all people shouldn't complain one friggin bit about shipping charges..

I paid it. I know how much feeders wastes. Those decisions were way above my pay grade. And on top of that, She tried to up sell me to NDA. She didn't know I was an employee and I knew we had ground service Hou-Dal next business day anyway.