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UPS Discussions
Numbers -VS- Customers
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<blockquote data-quote="beentheredonethat" data-source="post: 821072" data-attributes="member: 4886"><p>For a one time purchase, I agree with you. However, what if you had to buy 1000 items at a 20 dollar difference? Would you buy all of them at the shop that is more expensive for a difference of 20,000? I'm guessing the answer is no. When we are talking of a lot of our larger customers who ship 1000 or more a day. A $1 difference may not sound like much but it works out to $1000 per day difference of about 1/4 million dollars in a year. Very few customers will pay that much money more. As far as the person who commented our transit time is superior to FDX ground. That isn't true. In many areas of the country they beat us in overall transit time. THis is because they exclusively use contract carriers that they pay relatively inexpensively to move the loads between their hubs. We pay a lot more to our feeder drivers and we do have some areas we use TOFC, although cheaper then feeder drivers, it is still way more expensive then the contract carriers FDX uses. Although I agree that UPS makes a good profit, the overall profit margin isn;t that great. We've averaged around a 10% profit. So for every dollar we bring in we earn a dime in profits.</p></blockquote><p></p>
[QUOTE="beentheredonethat, post: 821072, member: 4886"] For a one time purchase, I agree with you. However, what if you had to buy 1000 items at a 20 dollar difference? Would you buy all of them at the shop that is more expensive for a difference of 20,000? I'm guessing the answer is no. When we are talking of a lot of our larger customers who ship 1000 or more a day. A $1 difference may not sound like much but it works out to $1000 per day difference of about 1/4 million dollars in a year. Very few customers will pay that much money more. As far as the person who commented our transit time is superior to FDX ground. That isn't true. In many areas of the country they beat us in overall transit time. THis is because they exclusively use contract carriers that they pay relatively inexpensively to move the loads between their hubs. We pay a lot more to our feeder drivers and we do have some areas we use TOFC, although cheaper then feeder drivers, it is still way more expensive then the contract carriers FDX uses. Although I agree that UPS makes a good profit, the overall profit margin isn;t that great. We've averaged around a 10% profit. So for every dollar we bring in we earn a dime in profits. [/QUOTE]
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