UPS May Follow FedEx Pricing Changes for Revenue Gain - Bloomberg
United Parcel Service Inc. (UPS) may find find FedEx Corp. (FDX)’s new pricing rules too tempting to pass up.
As FedEx prepares to start charging for ground-shipped packages by size, not just weight, the promise of $350 million in extra revenue could be “compelling” enough to spur UPS to copy that approach, said Kevin Sterling, a BB&T Capital Markets analyst. UPS said it’s “continually” evaluating its policies.
“History tells you that when one changes prices, the other follows,” Sterling said yesterday in an interview about the prospects for Atlanta-based UPS joining FedEx with a different rate structure.
United Parcel Service Inc. (UPS) may find find FedEx Corp. (FDX)’s new pricing rules too tempting to pass up.
As FedEx prepares to start charging for ground-shipped packages by size, not just weight, the promise of $350 million in extra revenue could be “compelling” enough to spur UPS to copy that approach, said Kevin Sterling, a BB&T Capital Markets analyst. UPS said it’s “continually” evaluating its policies.
“History tells you that when one changes prices, the other follows,” Sterling said yesterday in an interview about the prospects for Atlanta-based UPS joining FedEx with a different rate structure.