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Word is we lost Grainger account.
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<blockquote data-quote="worldwide" data-source="post: 4897991" data-attributes="member: 2193"><p>I don't know what the overall profitability/margins are on Amazon, Grainger or any other account and unless you are highly placed in corporate revenue management, neither do you. The point of the post is that the customers for both UPS and FedEx that are used to playing the game of getting price concessions every year and that are marginally profitable will not be seeing the carriers give out those discounts. The market conditions are favorable for both UPS and FedEx to obtain the rates they want to obtain and choose which market segments they want to grow. At some point, market conditions will change and customers will have the pricing power - all about supply and demand. It only makes sense to keep packages when they produce a profit. If UPS can make more money from healthcare, international and SMB customers and those segments are growing faster than the large B2B customers like Grainger, GE, etc., why wouldn't they pursue that business?</p></blockquote><p></p>
[QUOTE="worldwide, post: 4897991, member: 2193"] I don't know what the overall profitability/margins are on Amazon, Grainger or any other account and unless you are highly placed in corporate revenue management, neither do you. The point of the post is that the customers for both UPS and FedEx that are used to playing the game of getting price concessions every year and that are marginally profitable will not be seeing the carriers give out those discounts. The market conditions are favorable for both UPS and FedEx to obtain the rates they want to obtain and choose which market segments they want to grow. At some point, market conditions will change and customers will have the pricing power - all about supply and demand. It only makes sense to keep packages when they produce a profit. If UPS can make more money from healthcare, international and SMB customers and those segments are growing faster than the large B2B customers like Grainger, GE, etc., why wouldn't they pursue that business? [/QUOTE]
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Word is we lost Grainger account.
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