UPS blows a Major Fl account

Discussion in 'UPS Discussions' started by wornoutupser, May 2, 2006.

  1. wornoutupser

    wornoutupser Well-Known Member

    I cant believe this one.

    UPS just lost a major air/int'l account.This was a huge account.
    Our driver walked in last week and everything is in Fredex boxes and UPS has nothing.


    Because UPS was asked to sponsor a hole in a major golf tornament and someone in UPS dropped the ball. The sponsorship did not happen.

    Once again, someone down this way blew it. When will Orlando wake up?

    Please remember to submit those lead cards so that UPS can blow it again!
  2. handrail_hank

    handrail_hank New Member

    I bet someone is doing the Florida Scramble now.
  3. Fredly000

    Fredly000 Just Another in Brown

    I'll tell you why UPS is blowing it. At least where I am.

    FedEx came in aggressively to take over accounts, with nice
    high end regional sales guys. And they took them.

    UPS sales comes into out center, and tells us
    they aren't interested in visiting in person anyone under $100,000
    a year.

    UPS sales, and customer service is blowing it around here.
    Sure I can turn in a sales lead, but the customer doesn't
    want a phone call, they want to know that they matter.
    I can only do so much as a driver to communicate with
    the customer, sales and marketing needs to step up to the
    plate. They have all the answers the customer needs.

    As for an account being blown because we didn't sponsor
    mom and dads bake sale(ie some little golf tournament)
    .. I doubt wholy that its the sole reason.
    Switching over is a huge financial decision, and I doubt it was made
    overnight, or lightly.
  4. sendagain

    sendagain Member

    I personally rarely saw a sales exec on my route, either seeking volume or speaking to current accounts, and my route was in a large business complex. I saw three fedex trucks working my area on a daily basis. If they are selling UPS out there, I don't know where that is.
  5. dannyboy

    dannyboy From the promised LAND

    Dont think they were talking nickels and dimes for this mom and pop thing. If so I am sure to keep the account they would have jumped all over it. But then again maybe not, they have been know to drop the ball many times.

    More than likely it was based on the amount of profit vs the cost of the support of the tournament. If they dont see profit at the end of the day, they are not interested. I have seen quite a bit of this type of behavior.

    But my gut feeling is that they dropped the ball.

  6. trickpony1

    trickpony1 Well-Known Member

    I don't claim to be a Certified Public Accountant but can you say "write off"?

    Wouldn't you think the company could write off any sponsorship including the money we've pissed away on Dale Jarrett as well as golf tournaments?
  7. wornoutupser

    wornoutupser Well-Known Member

    This golf tournament was seen on national TV this weekend.
    We are not allowed to post numbers, but I was told that this account did about three times Mikeys salary last year with us.........
  8. upsdawg

    upsdawg UPSDAWG

    It is getting harder and harder to get money for sponsorships for customer appreciation stuff. In our district--if it isn't submitted a few months a head of time---it won't be approved---and with our budget cuts---there isn't money to spend by the district.I know that UPS can wrie off soem of the monies that we donate--but if every district spent as much money as they wanted on sponsoring golf tournaments and taking customers to Basketball---Baseball games--it would have a negative impact on our bottom line !!

    UPS needs to spend some monies on Capital Expendatures---we need to build some larger buildings----and now UPS Freight , which is maxed out for space --needs to increase the size of.......don't know how many terminals, to meet the growth that we are expecting in the LTL Trucking market.

    Regarding our Sales Force-----they can't even get a $5 UPS trinket for a $100k customer because there is no money allocated for that.I don't know what our competitors have for "Entertainment Allowances", but I guarantee it is more than UPS has to spend.

    Regarding the customer in FL-------I am sure that rates/service..something else contributed to their leaving UPS, other than us not sponsoring a hole!
  9. Ms Spoken

    Ms Spoken New Member

    Can anyone tell us what account UPS lost?
  10. UPS has been losing accounts left and right up here over the last year. We lost over 4 huge feeder accounts. I have only been a driver for about 10 years but it seems like UPS is really going downhill. FedEx has come in and added 2 new routes in my area already and I am hearing more and more how customers are tired of paying high shipping rates and getting many damages and late/lost packages.

    I average at least 2 follow ups every day looking for packages just lost in the system, these are not packages released and the customer didnt get them, but packages who just were lost in transit somewhere.

    UPS better shape up, We have such a large lead over our competitors that losing accounts doesnt seem to be too big a deal, but an account here or there adds up over time and from what I have seen, FedEx and DHL are doing pretty good in our area.
  11. upsdawg

    upsdawg UPSDAWG

    Could it be that FedEx and DHL are able to offer much lower rates than UPS and customers are switching to them because they can save a substantial amount of money??

    Because FedEx and DHL have lower costs due to lower wages and benefits--as in having non-union employees, thay can charge lower rates than UPS.If we drop our rates below our "Cost to Serve"----which includes our labor costs---we get sued for predatory pricing. If a customer 's characteristics are such that they are low weight and zone--and high cube (box size) and they have a negative claims history (due to the way that customer packs their merchandise)---we can't discount it enough to be competitive and have to walk away from a lot of business.DHL is buying our customers with offers such as, 90 day free shipping--not charging for o/s--os2/os3---and FedEx is great at offering low rates for ground just to attract the customers air/int'l packages( as in high revenue!)!!

    And guess what--our competitors are aggressively pursuing customers with the scare that----UPS will be going on strike again--and don't put all of your eggs in one basket-----we won't be providing service to non _FedEx/DHL customers--so you better sign a contract now---and they want a 1 year committment of exclusivity!!

    So there may be other factors involved with losing accounts------maybe even better time in transit for ground compared to UPS----remember Airborne/DHL has always targeted >5 lb packages and moved them in their 2 day system!! I just bought a new comforter from a shipper in N Hampshire--they used DHL--I tried to get them to use UPS----they said DHL doesn't charge O/S and I will have my package in 2 days for less money compared to higher rates with UPS and it would take 6 days to Calif( they would have paid a 30 lb rate with UPS and only charged 5 lbs with DHL)!!
    Last edited: May 4, 2006
  12. KeepItSimple

    KeepItSimple New Member

    I have a feeling we're going to see an increase of accounts jumping ship as we get closer to the end of the UPS/Teamsters contract.
    My sister works for a company in NY that ships high volumes of packages and expedited letters between their international locations in France, Brazil and here in the US (Big $). I was able to convince them to switch 90% of those to UPS only. Apparently the UPS sales rep in that area creeps out the women in the office so they moved some volume to Fdx.....(that's another story).
    Anyway, the two partners in that run the company have made it clear that if the contract is not agreed to early, they are going to sign an exclusive deal with fdx to avoid the loss of service that they experienced during the last strike. This may be a case of the boys in purple using scare tactics but after 1997 and given the fact that there are two other carriers out there promissing the world (and sponsoring holes in golf tournaments), I'd say we're going to see more of this.
  13. upsdawg

    upsdawg UPSDAWG

    KIS---I totally agree with you!! DHL has HUGE--DEEP pockets and will keep coming---and keep coming----and will spend money on more aquisitions-----and take market share away-------just like RPS used to---and then they will improve on their service and before you know it--we will be complaining about more companies jumping ship!!

    The contract is a major stumbling block for our customers----UPS and the Union need to give a little and meet in the middle---soon--and not before we lose more customers. A lot of customers are still bitter about 1997---and we won't remind them---------but our friends at FedEx and DHL will!!
  14. dannyboy

    dannyboy From the promised LAND

    Not to change the subject, but any one else heard about an extension to the current contract? Heard some rumors but nothing for sure.

  15. tieguy

    tieguy Banned

    I saw a memo on Jimmy Hoffa wanting to negotiate early. Wording was phrased as if JH was going to force UPS to come to the table early. Kind of like forcing me to eat ice cream:lol:
  16. ja4079

    ja4079 ja4079

    And what does Jimmy have to offer not much as far as I can see, he's screwed our penison. I would like to see UPS get what's left of pension, so maybe in a few yrs I can retire as planned and still have something left. But if UPS took the pension then all these other truck companies would be left out, oh well better them than me. I worked to hard to have to pay for somebody else that is not a UPSer.
  17. next contract

    Has anyone heard anything about UPS possibly asking for concessions on wages? A rumor spread throught the mill lately has started that UPS will demand wage concessions in this next contract.

    I figure its just a bad rumor, but it does sound like something that they would fight for, outside of controlling the pension funds.
  18. Planned Day

    Planned Day Guest

    he said "UPS blows"
  19. Lol

    "ups Blows A Major Fl Account"

    Is That How We're Getting Accounts To Ship With Us?

  20. lou

    lou New Member

    No that's how you get promoted...