UpstateNYUPSer(Ret)
Well-Known Member
48% profit margin tells me that you are underpaying your employees.
Major ground failure in San Francisco.
- Thread starter gixxer squid
- Start date
dvalleyjim
Well-Known Member
I think you may be right. It looks like it is falling apart. Although a new political environment might change that.
gixxer squid
Well-Known Member
LOL its a Niche business. little competition They make 30% more than our fedex drivers......
dvalleyjim
Well-Known Member
to Gixxer. I could never never make more that a 3-5% profit. After the contract change in 2008 I think I was losing money. It sure didn't seem like enough to pay drivers and keep trucks maintained.
UpstateNYUPSer(Ret)
Well-Known Member
Is the 48% your net profit?
dvalleyjim
Well-Known Member
As far as legal and contractor relations. Are they paid by us the contractor? If not, they don't represent us, plain and simple. They will always cover X ass. ALWAYS.
I found that out the first time I talked to CR, all the guy did was remind me of what my contractor said. I said I know what my contract says I just don't think it's right to charge a complaint to my driver for DR ing a package at 9 at night. The customer said he was waiting all day and wanted to sign for it. I said it was a residential with no required sign. He said we don't do ding dong ditches anymore. I said I won't be driver releasing anymore and he told me that wouldn't be a very good business decision.
From that moment on I said screw contractor relations.
I found that out the first time I talked to CR, all the guy did was remind me of what my contractor said. I said I know what my contract says I just don't think it's right to charge a complaint to my driver for DR ing a package at 9 at night. The customer said he was waiting all day and wanted to sign for it. I said it was a residential with no required sign. He said we don't do ding dong ditches anymore. I said I won't be driver releasing anymore and he told me that wouldn't be a very good business decision.
From that moment on I said screw contractor relations.
gixxer squid
Well-Known Member
So this is my great dilemma. I am not a corner cutter (maintenance). I don't mind the hard work, the crap from the front office, the late nights, early mornings, the weekends. I am sorry, but I feel ENTITLED to make more that our highest paid driver, LOL Plain and simple.
I spent half the day yesterday in terminal pulling out 3 of our trucks to load bulk stops onto my rental truck, and yes, all with a happy face. WHY? Because we will be 100% service. To some, that might not mean much and I understand, but for me, tomorrow will be a cakewalk because tedious planning and execution on the part of me and my team. As far as the rest of the terminal, WOW, there are going to be some epic failures once again.
gixxer squid
Well-Known Member
Apologies. Its gross. My brain is thinking way ahead of my typing hands. Net though runs 28-34% depending on the job though since I have acquired and payed for all the equipment necessary to do the job.
UpstateNYUPSer(Ret)
Well-Known Member
28-34% is nothing to sneeze at.
gixxer squid
Well-Known Member
LOL I got a DNA a few months ago, when I drive, I pride myself on perfection and lead by example to the guys. Next day I have like a 99.6 or something, I look into it, terminal apparently found a box somewhere that belonged to the route I was driving that day, so since I didn't deliver it, I got a DNA. Boy do you think I was pissed? I am sure it happens everyday.
gixxer squid
Well-Known Member
Its a niche in the construction business. I reinvested slowly every year and last may 2014 I bought my last piece of equipment needed for this business. My nice section 179 deduction, LOL Cash cow ever since......
dvalleyjim
Well-Known Member
You know gixxer. I always felt I was lucky if I broke even at peak time because of all the extra expense I incurred to maintain good service. So much for making extra money on the increased volume.
UpstateNYUPSer(Ret)
Well-Known Member
Roach coach?
Yes. This is who you are. That is admirable and at one time, I held the same ideas. Know, however, X will simply continue to take advantage of you because of it. It's who they are. You will go above.and beyond and they will profit from itLOL I got a DNA a few months ago, when I drive, I pride myself on perfection and lead by example to the guys. Next day I have like a 99.6 or something, I look into it, terminal apparently found a box somewhere that belonged to the route I was driving that day, so since I didn't deliver it, I got a DNA. Boy do you think I was? I am sure it happens everyday.
Look at it this way: your pride is only costing you 9-12% of your profit.
It will be fine
Well-Known Member
Things are much easier at Ground when you give up on the idea of performing exceptional service. Do what you can within reason. If success costs too much money failure is an option.
For you guys who are agonizing over service. The contract I signed and perhaps the one you signed also called for a" competitive" level of service. It said nothing about 99% or a specific percentage. Now the TM we had at the time tried to tell me that it meant 99% Of course when I demanded that he present me with a contract that stated 99% and had my signature on it he couldn't produce it. So stop fretting over that service percentage Why? Because X will never give you enough money to develop and support the kind of redundancy needed to assure 99% in the face of a package volume that has no consistancy and never will and you guys are always the last to know when the volume spikes yet you are expected to simply snap your fingers and there will imediately appear extra assets to handle it.
gixxer squid
Well-Known Member
Oh heck no. Not in the food business ....
gixxer squid
Well-Known Member
Yes. This is who you are. That is admirable and at one time, I held the same ideas. Know, however, X will simply continue to take advantage of you because of it. It's who they are. You will go above.and beyond and they will profit from it
Look at it this way: your pride is only costing you 9-12% of your profit.
Yes. You and I have discussed this a few times. I see your point, I really do. I don't have the time nor the inclination to be pulled into the office to discuss " what is your plan" lol with the P&D puppet. Am I not making the money I should? Yes. Do I have piece of mind not getting those phone calls? Yes.
It's a conundrum. Staff less and make more money. The boxes only start stacking up for the next day and unfortunately I was taught by the most important figure in my life, my father, that money does not buy class and your word is your bond, your honor. We signed the contract and till we are out, we will continue to provide the best possible error free service and accident free service that we can. Money may not buy happiness but it does buy piece of mind....
gixxer squid
Well-Known Member
Thankyou. Many here however speak the truth but it's really a matter of perspective which direction one tries and guides the sheeple.
