UPS profit margin on types of customer

Discussion in 'UPS Discussions' started by Austin.Was.My.Hero, May 25, 2014.

  1. Austin.Was.My.Hero

    Austin.Was.My.Hero quod erat demonstrandum

    Does UPS have more profit handling the packages for businesses who have bulk stops every day or from millions of homeowners who shop online and QVC?

    Wasn't sure where to post this.
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Revenue and profit margin are not one in the same. Our highest profit margins are from those mom and pop businesses who pay full retail. Our lowest profit margins are with online retailers, specifically amazon; however, what we may lose per piece we more than make up with volume.
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  3. Upstate answered the question very well. So what's the story behind your user name if you don't mind? Who/which Austin?
  4. Austin.Was.My.Hero

    Austin.Was.My.Hero quod erat demonstrandum

    Thank you. I should have said revenue, not profit margin.
    Isn't the volume of online shopping the reason UPS is so busy right now?
    I've heard the same joke a few times now "when is peak season over?"

    How would you compare revenue from homeowners single packages (incl: Amazon/QVC) to say, the chain gas station getting bulk every week or the smaller industrial manufacturer who gets bulk heavy multiple times a week?

    (haha) It's an inside joke. Somebody from my small hub will eventually read the browncafe and see my username.

    Austin was a PT Sup, who was only a few years out of High School. A honor student almost done with college who's going into secondary education.
    Simply put: UPS was never going to be Austins career, it's resume padding material for when he moves onto bigger things.

    Jokingly the comment made was "Austin, you are my hero" after he'd get yelled at for whatever reason. Austin is a good fella who lasted a heck of a lot longer as a PT Sup than most of us would.
    Last edited: May 25, 2014
  5. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The revenue per pkg through Amazon is relatively small with even tighter profit margins. It is the volume that saves us.
  6. brownrod

    brownrod Active Member

    I was always told that we lose money on residential and make money on bulk commercial stops by a particular supervisor that retired years ago. And I always asked why it was impossible to bonus on bulk commercial routes and easy to bonus on residential routes.
  7. Monkey Butt

    Monkey Butt Dark Prince of Double Standards Staff Member

    There has to be a better way to express your opinion! LOL

    This sounds like misspeak by a Corporate Marketing manager.
  8. Oak

    Oak Active Member

    Lost money is gone forever. You cannot make it up.

    Any money you make that you were thinking you made up for something else could have been made anyways.

    If you lost a dollar, then made a hundred, you still only have $100 instead of $101.
    Last edited: May 25, 2014
  9. Future

    Future Victory Ride

    Thats it close up shop... lock the doors and sell the planes...UPS is going belly up dammit!!
  10. PT Car Washer

    PT Car Washer Well-Known Member

    We have an Austin in my center who is a young PT OMS and runs Saturday Air. Good guy and hopes to one day be Center and Division Manager. Like Forrest Gump said "That is all I have to say about that."