Comments on: UPS and FedEx 2009 Rate Increases

By: udc web » FedEx 2009 Rates

udc web » FedEx 2009 Rates — Wed, 13 Oct 2010 18:17:03 +0000

[...] 12.UPS and FedEx 2009 Rate Increases « Deep Thoughts on Business, the Imagine if UPS did not raise their rates and FedEx did raise theirs for 2009. What might happen? People currently using FedEx might switch over to UPS, instead. This would cause UPS’s per package cost to go down, right? http://www.lorien1973.com/ups-and-fedex-2009-rate-increases/ [...]

By: lorien1973

lorien1973 — Thu, 06 Aug 2009 17:51:34 +0000

The cost per box is cheaper. That’s the point.

By: Frog

Frog — Thu, 06 Aug 2009 17:45:43 +0000

Re posting (above): It does costs more to pick-up or deliver 400 boxes to your door vs. 100 boxes – more gas, bigger trucks, more time spent bringing the boxes to your door, etc.

By: Frank

Frank — Wed, 07 Jan 2009 23:00:31 +0000

The big winner is the US Postal Service. They are carrying many of the packages UPS and FedEx used to get. It is too bad that UPS and FedEX can’t maintain their cost structure in light of the decrease in fuel costs. I switched to USPS and was pleasantly surprised at both the savings and the speedy arrival of the packages. I’ll never go back to commercial shippers. USPS even picks up here for free.

By: Frank

Frank — Wed, 07 Jan 2009 23:00:11 +0000

The big winner is the US Postal Service. They are carring many of the packages UPS and FedEx used to get. It is too bad that UPS and FedEX can’t maintain their cost structure in light of the decrease in fuel costs. I switched to USPS and was pleasantly surprised at both the savings and the speedy arrival of the packages. I’ll never go back to commercial shippers. USPS even picks up here for free.

By: jack in the box

jack in the box — Tue, 11 Nov 2008 22:20:06 +0000

Not to mention if they come out with another Elvis stamp, they will write another million, at least, 42 cent checks or stamps that will NEVER be cashed.

Let’s see, carry the one, yep, that’s $420,000 of instant money per million stamps never used.

By: lorien1973

lorien1973 — Tue, 11 Nov 2008 22:19:35 +0000

Has anyone heard of fixed cost????

Think about this for a moment.

It costs UPS the same to pick up 100 boxes at my door; or 400 boxes. Exactly the same cost.

Also, it costs UPS exactly the same to deliver 1 box to my door, and 1 to the neighbor’s house. However, it costs UPS more to deliver 1 box to my house and another box to a house 2 miles away. With less deliveries by UPS because of increased rates, this is exactly what is happening.

By dividing up the market share between UPS/FedEx/USPS – each one of their cost per box (delivered) goes up. Price competition could bring more deliveries to any one of these and thus lower the delivered cost per box.

By: jack in the box

jack in the box — Tue, 11 Nov 2008 22:16:56 +0000

It is a known fact the US Post Office is subsidizing ALL of its other business with the delivery of literally hundreds of millions of letters within a ten mile radius for a net profit of 41.8 cents per piece of mail.

By: jack in the box

jack in the box — Tue, 11 Nov 2008 22:14:18 +0000

I always said that if 42 cents is such a great deal to mail a letter then why doesn’t the government allow anyone else to do it. They are protecting the monopoly even as they forced the break up of other monopolies such as Ma Bell because of lack of competition. They forced Ma Bell to allow the use of their assets, physical lines and cables, and froze the rates for about 2 years so Ma Bell couldn’t just put them right back out of business. The only thing the U.S Post Office would have to do is give up it holiest of shrines, the mailbox.

By: Marie

Marie — Tue, 11 Nov 2008 13:06:38 +0000

Has anyone heard of fixed cost???? They don’t go down regardless of supply and demand.