Too much business SORRY

falcon back

Well-Known Member
On paper a business stop getting multiple packages makes FedEx more money than a resi stop getting 1 box. But the routes delivering the packages are equal. A business heavy route is going to do less stops. A resi heavy route will do more. They’ll both leave the station with a full truck. The only way you’re going to profit more from a business heavy route is if it takes out a bigger truck holding more freight. Which the company isn’t investing in anymore.
Dude, you are just plain stupid. A resi rt might deliver 150 to 175 pieces to their 100 stops. A business rt is gonna deliver twice as many pieces to half as many stops. Which rt is bringing in more revenue? You believe what you want in fantasy land. Our 900's are all less than 2 yrs old. Watch a Frontline every now and then and hear the numbers of 900's being put in the system
 

AB831

Well-Known Member
You are clueless as to how costs are associated to various types of freight. Get someone to explain it to you
You dont actually believe the e Commerce deliveries to residentials are non discounted do you?
Why don't you explain it to him since you know so much? When you do, try spelling accurately. It really helps your credibility.
 

AB831

Well-Known Member
Dude, you are just plain stupid. A resi rt might deliver 150 to 175 pieces to their 100 stops. A business rt is gonna deliver twice as many pieces to half as many stops. Which rt is bringing in more revenue? You believe what you want in fantasy land. Our 900's are all less than 2 yrs old. Watch a Frontline every now and then and hear the numbers of 900's being put in the system
Frontline :rofl: Omg dude, that's like telling someone to read "Conservative Tribune" to give credibility to something Trump said.
 

!Retired!

Well-Known Member
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59 Dano

I just want to make friends!
BS the trucks are FULL, we are making money, we're making so much money we can afford to have PM pickup drivers sit for hours waiting for trucks...

FedEx was almost exclusively B2B for years because the average resi delivery costs more to service than the average business delivery.
FedEx purchased and further developed a ground operation with significantly lower operational costs in large part because it would give them a much cheaper avenue to service residential addresses.
FedEx is implementing the LMO program to reduce the cost of servicing residential addresses.
FedEx Express is hiring casuals who get no guaranteed hours and no benefits to make resi deliveries


You're calling BS, meanwhile the company continues to target residential deliveries with cost-cutting measures. I can't imagine why!
 

Buhryein

Well-Known Member
Lets look at this objectively, yes SOME business has dropped off (while some are getting way more volume, my station is blown out business and resi) . However ALL resi has picked up significantly.

Is it possible that the drop in business and loss from that is being at minimum made up by the huge increase in resi....

Yes fedex has taken a hit overall from business but the increase in resi is at least covering if not improving the profit.

Lets not forget FedEx said they would be adding more surcharges to big shippers, resi also has a resi surcharge already per pkg, some (not sure if all) international was getting a covid surcharge. International will now have signature options (obviously for a fee).

You can't argue that they are not making money hand over fist here.
 

59 Dano

I just want to make friends!
Look at a truck full of residentials vs. a truck full of business deliveries. Both trucks are full. Both will be done in 8 hours. SAME COST. A truck having more bulk business stops is not going to result in more stops. That driver will go slower, take his time, and come back at the same time as the resi heavy driver busting his butt driving more miles... both trucks will run all day. One will just work harder. See this is the problem with management in this company. They look at numbers all day and lose touch with the actual jobs they manage. People run these routes, not robots. The only difference between a route running business stops vs residentials is the effort required from the driver. If anything business heavy routes are less lucrative due to heavy discounts provided to shippers who ship a lot. You’ve got discounted freight on a truck with a driver taking his time. Please tell me how that’s more profitable than a truck full of non discounted residentials with a driver that’s rarely stopping.

"Gee Dano, based on this ridiculous hypothetical situation that isn't reflective of reality and was created specifically to lead to a specific conclusion..."

If anything business heavy routes are less lucrative due to heavy discounts provided to shippers who ship a lot.

You mean that Walmart and Target and Paparazzi and VS and UA and Apple and all those other ecommerce companies don't get discounts? ROTFLMAO!
 
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59 Dano

I just want to make friends!
On paper a business stop getting multiple packages makes FedEx more money than a resi stop getting 1 box.

It makes more money in reality, too. It costs less to drive a truck to one stop to deliver five pieces than it costs to drive a truck to four stops to deliver five pieces.

This isn't rocket science.
 

59 Dano

I just want to make friends!
You can't argue that they are not making money hand over fist here.

No one denies that. However, some idiots here are in denial that the average residential delivery is more expensive to service than the average business delivery. They look at the gross result and their reasoning ability -such as it is- evaporates.

For example, it costs $1 to make Widget A. It costs $1.27 to make Widget B. They sell 3X as many of Widget B than Widget A and, as a result, make more money from B. Doesn't change the fact that it costs more to make Widget B and yet someone would still deny it.
 

falcon back

Well-Known Member
It makes more money in reality, too. It costs less to drive a truck to one stop to deliver five pieces than it costs to drive a truck to four stops to deliver five pieces.

This isn't rocket science.
Aquaman said a resi that gets 1 letter gets the same profit as a business getting 100 letters. He must have gone to math class with Jethro Bodine.
 

vantexan

Well-Known Member
FedEx was almost exclusively B2B for years because the average resi delivery costs more to service than the average business delivery.
FedEx purchased and further developed a ground operation with significantly lower operational costs in large part because it would give them a much cheaper avenue to service residential addresses.
FedEx is implementing the LMO program to reduce the cost of servicing residential addresses.
FedEx Express is hiring casuals who get no guaranteed hours and no benefits to make resi deliveries


You're calling BS, meanwhile the company continues to target residential deliveries with cost-cutting measures. I can't imagine why!
When was FedEx almost exclusively B2B?
 

falcon back

Well-Known Member
When was FedEx almost exclusively B2B?
40 years ago residentials were a very small portion of most routes. The internet and more people working from home changed all that.

LL Bean and Daytimers were about the only constant resi deliveries.
 
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vantexan

Well-Known Member
40 years ago residentials were a very small portion of most routes. The internet and more people working from home changed all that.

LL Bean and Daytimers were about the only constant resi deliveries.
I became a courier in '88. Dano said FedEx developed Ground as a way to do more residential deliveries. As if in the '90's and early 2000's we were almost exclusively B2B. Some routes sure, but not most routes.
 

floridays

Well-Known Member
No one denies that. However, some idiots here are in denial that the average residential delivery is more expensive to service than the average business delivery. They look at the gross result and their reasoning ability -such as it is- evaporates.

For example, it costs $1 to make Widget A. It costs $1.27 to make Widget B. They sell 3X as many of Widget B than Widget A and, as a result, make more money from B. Doesn't change the fact that it costs more to make Widget B and yet someone would still deny it.
In moving "airfreight" to a "contractor" Fedex Ground, does the airline designation exist?
Reality, not in antiquated law.
Just a silly question I ask.

Catch yourself in this trap.
 

59 Dano

I just want to make friends!
Dano said FedEx developed Ground as a way to do more residential deliveries.

::sigh::

FedEx purchased and further developed a ground operation with significantly lower operational costs in large part because it would give them a much cheaper avenue to service residential addresses.
 
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