Premium "peak" pricing

Discussion in 'UPS Discussions' started by The Driver, Dec 6, 2019.

  1. The Driver

    The Driver I drive.

    Does UPS charge a premium on all of their services for all shippers for any shipping done during the month of December?

    Would this be a good idea to try to capture some more revenue while also lowering our overall volume somewhat or would this be just too confusing and bad for competition and our brand? Thoughts?
     
  2. scooby0048

    scooby0048 This page left intentionally blank

    With the epic fail we are about to have, and the failure of 2013, could you imagine how pissed the customers already are by having service failures then to be told we are jacking up the prices? The court of public opinion would shred us.
     
  3. zubenelgenubi

    zubenelgenubi Well-Known Member

    This is business 101. Supply and demand. When supply of shipping capacity is diminished due to greater demand, price should go up. This allows for more investment in infrastructure in order to increase capacity. But, you always have to be aware of competition. When shipping prices go up, they attract investors looking to get a piece of the larger pie. More competition means more capacity, which means supply outpaces demand and prices drop. There are also limiting factors, such as bottlenecks that cannot be eliminated due to regulatory constraints, or contracts we have with shippers.
     
  4. zubenelgenubi

    zubenelgenubi Well-Known Member

    Increasing prices is the best way to ensure service commitments are met. There is an optimal amount of capacity that we can handle. Once we go past that, we run into diminishing returns. It costs us more to deliver more than a certain amount of volume. If we charge the same amount, we lose money, and cannot invest in increasing capacity in order to keep prices down.
     
  5. scooby0048

    scooby0048 This page left intentionally blank

    Well, it's not working.
     
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  6. zubenelgenubi

    zubenelgenubi Well-Known Member

    I don't think we are doing it. If we are, we certainly aren't doing it right.
     
  7. UpstateNYUPSer

    UpstateNYUPSer Well-Known Member

  8. Wally

    Wally BrownCafe Innovator & King of Puns

    I'm not sure the customers, meaning the final destination, know the shipping cost? The shipper does.
     
  9. Poop Head

    Poop Head Lovin' every minute of it!

    Charge the little guys more. Charge amazon less
     
  10. iowa boy

    iowa boy Well-Known Member

    Oh, its working. This is how they are paying for all the double time after 60 hours!!!
     
  11. zubenelgenubi

    zubenelgenubi Well-Known Member

    I think even a few cents surcharge on small and residential packages would not be unreasonable. But I have noticed a lot less "large" packages than in previous peaks. They've been able to fit 450 pieces into my pc this year, whereas that would not have been the case last year. They may be on the right track.
     
  12. scooby0048

    scooby0048 This page left intentionally blank

    The people at the end are not who I'm thinking of. I'm thinking of the equipment company who is shipping a 149 lb sprocket for some mining drill EAM, or the title company shipping documents NDA for Saturday.
     
  13. Wally

    Wally BrownCafe Innovator & King of Puns

    Those prices might be different for sure.
     
  14. scooby0048

    scooby0048 This page left intentionally blank

    All the money they make, I spend driving 120+ miles on OT to deliver an 1/8th OZ wingnut for a lampshade.
     
  15. Sissy Brown Short Shorts

    Sissy Brown Short Shorts Active Member

    This and last years peak I delivered zero iregs.
     
  16. zubenelgenubi

    zubenelgenubi Well-Known Member

    I had a dip in irregs last year when they announced the surcharges and fees, but they came back. I used to get clogged up with four or five a day, so far it's been one or two.