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[upset]

I am glad that we are off to a great 2000! Even though our rate increase has customers upset (they want everything for free; who doesn't?), Business Development is doing well and will help the company meet its goals for ALL of 2000.

HOWEVER, as a newly compensated BD person, there are some disturbing things (as a shareholder) that I have seen from my management in Metro D.C. that just doesn't make sense:

1. Starting in January, our account base we work on was frozen. That means we have about 100 accounts, and cannot open a new account for a customer unless they currently have NO existing UPS account. As you would imagine, almost every business has one type of account with us.

BUT, I am forced to turn in at least two international bids per month and at least two domestic air bids, which offer our customers discounts (and less profit for UPS). Even though my account base may be 100% happy with our prices and service, I must "meet the numbers" and turn in my bids. As you would imagine, over the course of a year, 25% of my account base will probably receive some sort of discount because we must meet the minimum bid requirements. As I cannot find new business in my segment (they all have accounts), I must cannibalize OUR profitability. Does this make sense??? Its crazy!!! If I was Wall Street, and I found out a company forced its staff to offer unwarranted discounts just to prove the staff are spending time in front of customers, I would downgrade the stock to a sell!

While I love UPS, I don't know what to do about my complaint on this issue. Our BD Manager is only looking for her next promotion, and her "yes men/women" won't stand up to her for the good of the company as they are afraid of not being promoted and getting her upset.

Suggestions???

 

[moron]

The only silver lining in this cloud is I hope our competition has some idiot in charge like your boss.

 

[frontline]

D.C.

I understand the issues you bring out. I have similiar issues with the inefficient (disregard for profits)way the BD function measures AE productivity in my district. And now, not only does these issues intrude on the growth of my investment in UPS stock, but also the new sales compensation package doesn't pay commision dollars for bids, does it? I think the idea is to grow revenue and volume.

In my opinion, this all needs to be fixed soon. We will not continue to meet anaylists expectations with a BD Managers/Operations mentality hammering us for bids. CORPORATE! HELP! Your compensation package for the sales force is a great idea. Unfortunately, the operators managing BD don't know how to implement it in the field.

Frontline AE

 

[tang65]

To Upset salesperson in DC,
Obviously you dont have enough to do . I see that you posted to the board at 1:00 pm , I thought that sales people were suppose to be out selling at this prime time. I also find it hard to believe that every Business on your assigned area has an account. The purpose of submitting 2 bids per month was focused at new accounts notexisting ones. You must not have listened when this strategy was implemented. You probably had to be home early that day. As for your mgr. she must answer for all your shortcomings . If you would do your job instead of complaining maybe the metro dc district would make our vol. and rev quotas, and take some of the packages that the competetion continues to walk away from us. So dont blame anyone but yourself if you dont make your commission. And by the way you asked for the commission didn;t you ?

 

[seahorse1]

So majic......where did everyone find out about the OPL dividend? I can't find anything at their website (It seems to me they are still playing the old UPS .... don't want to give you too much information game...or is it just me?

 

[t.]

Could some one post the info on the OPL dividend?
I would like to know the record and pay dates.
The toll free number used to have that info.
Thanks

 

[go]

Dividend is .60. TZhe difference being last year the dividend was $1.20, payable once a year and this year the dividend will be payable twice a year. I guess this is fair seeing OPL lost 1/3 of its revenue from reinsurance.
Also, I haven't heard of any "date of record" most likely because we haven't been able to get any shares since the first MIP award in January, 1999, so this date would be irrelevant.

 

[upset]

To Tang65

First, the clock on this system is off, and it was around 4:00 p.m. ON MY SCHEDULED DAY OFF when I posted this note about some issues I am having with UPS (in other words, I posted on my own dime and own time, using my own computer). I make my first call at 8:00 a.m. each day, I am lucky to have lunch, am back in a building to drop off paperwork at 6:00-6:30 p.m., and if I am lucky, I make it home by 7:30p.m. to have dinner. UPS gets its $$$ out of me, that I can assure you.

Second, we (the sales force) did not ask for a commission plan, it was something we were told was being rolled out by corporate. Perhaps there was a focus group somewhere in the company that asked for our inputs, but I can tell you such a group was not held in D.C. Metro.

Third, I think your lack of sales skills is showing in your comments about account management and the management of a sales base. My segment is $20K to $100K in a very large part of our district. Well over 95% of the companies in my area and segment have UPS accounts (either 6 digit or BIN). Given my responsibilities to keep my exisiting 100+ accounts happy (which are the ONLY accounts I can receive a commission on this year), try to push the internal paper, overcome operational and customer issues, etc., I probably have 2-3 hours per week to look for new accounts (Which I do) with no UPS account # as our Marketing folks do not provide good leads to make my job easier. This is a reality of UPS sales for most sales staff in this segment.

Fourth, in our District in Metro D.C., they want BIDS. PERIOD. The do not care where we turn them in from, existing, new, who cares, just make the numbers. I agree they should only be new accounts, but that is not how it works in my District, and I suspect this is going on elsewhere.

Fifth, my BD manager should take the heat for these practices, as you point out.

Finally, people like yourself who are so indoctrinated in UPS' version of George Orwell's 1984 are what will destroy this company. I always hear the "When Casey was alive..." Well, I love UPS and want a future here. If we don't question things that are wrong, and blindly stick to the attitude that UPS is perfect, we will someday lose our quarterly stock dividends, and, as we have seen the value of our stock (which we had given to us at an MIP value of $68) continue to slide below $55 in 4 months, we will all be looking for work at Federal Express or the German Post Office!

 

[none]

Just do your job and dont worry about others.

 

[preloadsup]

What we really need here is a group effort to help weed out the slackers. It just makes work more stressful for all of us to have a few freeloaders in the operation.

If everyone, including their peers, would make it known that they are aware of the individuals that aren't pulling their weight in the workplace they will not be able to maintain their feeling of entitlement. Just because they have a union job does not mean that the standards of production don't apply to them.

 

[more]

T. Sheehah: go to this address for OPL news:

http://www.overseaspartners.com/

Click on "Letter to shareowners" and it tells
about the 60 cents.

 

[red]

I for one am really disappointed that there was no price increase in the shares. The dividend is nice, but I want appreciation too.

I may rethink my plans to purchase because of these poor results.

 

[kick]

I have been an AE for 6 years. It's about time commission came along. What other sales organization in the world operates without commission? Like most UPS AE's, I work hard and am dedicted to UPS. When I go "above and beyond" to get a new account, I like the fact that I will be rewarded with extra dollars each quarter. Unfortunatly, I think every AE in the country knows of another AE in their district who is just skating by-giving an OK effort but not giving it their all. These are the folks who should NOT be in sales. The business environment is too competitive today to be complacent. When UPS was the only game in town, UPS did not have "salespeople". They had customer service representatives who would go out and have to visit X number of accounts per quarter, do X number of audits per month, etc. A few of those folks are still around and they are not the folks to have in BD. Commission will reward the people who actively pursue NEW business while maintaining the business we have.

If any AE thinks that 95% of the businesses in their area have a UPS account, they have to go knock on a few more doors each day. It is true that most LARGE accounts have a UPS account, but most large accounts are already assigned to an AE, so that is where your penetration business comes from. Knock on the doors of the smaller accounts-those are your conversion accounts. Those are the accounts that will yield commission money and will turn in to the large accounts of tomorrow. By the way, not every district has sales representatives to visit the small accounts. Some of the Key AE's have to take care of those accounts in addition to their base.

With commission comes risk-you don't make your volume and revenue numbers, you paycheck may be a little smaller. It also has rewards-If you exceed 100% of your plan, you make more than you would have with a normal annual raise. If an ASM or DSM is only concerned with seeing X number of bids per month, then that is the wrong approach. It is true that the more bids that are submitted, the greater the chance of won business, but chasing 2 bids per month should not be the ultimate goal. A number for the sake of a number is old-school UPS. As long as you are making your business plan, that is all your ASM should be concerned with. If I can make my plan with only 1 bid per month, my ASM leaves me alone. The folks that are below plan AND have less than the required number of bids have something to worry about.

I hope the operations folks will receive some kind of commission in the future as well. Something based on number of missed packages and NDA's delivered late. I have been seeing far too many missed packages and NDA's delivered late. Would the frequency improve if there was extra monetary reward involved? What do the folks from operations think?

 

[buyorsellopl]

Red,
my sentiments exactly. If you lose 30% of your revenues, nobody will look good. I think I'm sitting tight for now.

 

[seahorse1]

Hey folks.......if the stock price not going up is poor results (OPL) ...then what do we call the UPS stock (going down)...not trying to be argumentative here. I still think there is something "brewing" on the Bermuda Triangle (OPL) and it ain't coffee. I'd love to have a crystal ball, or be privy to whether or not the BOD will purchase "heavy" in late spring when the 10,000 shares are available for purchase....hmmmmm

 

[big]

My thoughts on why the price of O.P.L. did not go up this time is: We were told that we could buy up to 10,000 shares, however you can't do it yet since the "paper work " isn't finished.
I like many others be would be extremely upset if the price had gone up this time since it would have cost me extra monies when I can buy the stock. I believe that the Company is looking out for the share holders by not letting it go up this time. Next time it will go up substantially. Buy before then !!!

 

[buying]

Interesting point of view Big Red, I hadn't thought of that possibility.

Hope you're right!

 

[Guest]

If working on commission helps us develop a greater market share, then I'm all for it. The downside to this has already started. An AE in my district made a DEMAND that one of his better accounts now get a 21:00 pickup time. My last driver (air) leaves that area @ 20:00 and makes barely makes it back to the building in time to make end of the sort.

 

[xbrown]

Seahorse,
Back again. Took some time away to reflect on my good fortune. Just glancing thru the boards and came across your comments about OPL. Makes me wonder about the secretive back room stuff that goes on. Like how much stock was bought by some from the BOD just before it was announced it was going public. How much went to family members to hide from the insider trading stuff the SEC detests? Just wondering out loud.
xbrown.

 

[seahorse1]

Well. I certainly can't kick about any of that. I've had more good fortune than I ever expected....enough to last me for a long time to come, and leave a little behind...although I'm going to try to spend it all...right up to the "Luxury Suite" at the nursing home....I still have this uneasy (good) feeling that OPL is going to do something equally as spectacular as the Brown stuff did last year...we can always hope that it does anyway......pretty sure it won't go down!