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Brown Cafe UPS Forum
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Premium "peak" pricing
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<blockquote data-quote="zubenelgenubi" data-source="post: 4289191" data-attributes="member: 63706"><p>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.</p></blockquote><p></p>
[QUOTE="zubenelgenubi, post: 4289191, member: 63706"] 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. [/QUOTE]
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