Bye Bye for now....Amazon

TUT

Well-Known Member
But we should be crushing Fed Ex, Wal-Mart crushes; Target, Aldi, Publix, Kroger and put K-Mart out of business. None of the above companies are even close to them. Fed Ex is on our heels

Why should UPS be crushing Fedex? Same human race running both companies. If both are running optimally, they'd be equals. Whatever you list, Fedex could do the same.
 

TUT

Well-Known Member
My educated guess, good enough for a real solid rumor around the belts...

Think something like Ground 60-65% and Air 75-85%.

So think of a $10 list ground package (something smallish) your typical solid customer would be paying around $7.50, Amazon will be paying around $4. Now do you think you make enough profit per package to eat that $3.50 difference? Well your quarterlies do not state that kind of profit per shipment on avg.

That is where large metrics begin to factor in, you hear things like "Pays for over-head", from my travels, some of that is true, but it is also usually gray trying to be precise with a lot of numbers factored in.

Would you do better not having them and cutting over-head (jobs/machines) accordingly? Perhaps. Or will your profit per package take a hit on the rest of your remaining volume? Perhaps.

It seems like Wall Street likes growth, so lets say you had a better bottom line, but your volume were down, they worry about that. What they want is both, better bottom line with growth showing. Most likely some of the leverage an Amazon sized account would have and yes... they'll know that.

Does UPS or Fedex survive without Amazon, of course. But it may cost some jobs. Another educated guess is USPS is seeing Amazon growth. Why? Cheaper yet. No dim rules. Sunday and Sat for nothing. Still deliver adequately no matter what a rival driver may think.
 

Orion inc.

I like turtles
My educated guess, good enough for a real solid rumor around the belts...

Think something like Ground 60-65% and Air 75-85%.

So think of a $10 list ground package (something smallish) your typical solid customer would be paying around $7.50, Amazon will be paying around $4. Now do you think you make enough profit per package to eat that $3.50 difference? Well your quarterlies do not state that kind of profit per shipment on avg.

That is where large metrics begin to factor in, you hear things like "Pays for over-head", from my travels, some of that is true, but it is also usually gray trying to be precise with a lot of numbers factored in.

Would you do better not having them and cutting over-head (jobs/machines) accordingly? Perhaps. Or will your profit per package take a hit on the rest of your remaining volume? Perhaps.

It seems like Wall Street likes growth, so lets say you had a better bottom line, but your volume were down, they worry about that. What they want is both, better bottom line with growth showing. Most likely some of the leverage an Amazon sized account would have and yes... they'll know that.

Does UPS or Fedex survive without Amazon, of course. But it may cost some jobs. Another educated guess is USPS is seeing Amazon growth. Why? Cheaper yet. No dim rules. Sunday and Sat for nothing. Still deliver adequately no matter what a rival driver may think.
The USPS loses money on those amazon Saturday and Sunday deliveries. There is no way with their overhead they make cost on that. They also use their 1st class mail and stamp revenue to subsidize the cheap rates on their expanding package volume. That's why the USPS rates are always lower than our ground rates in some cases.
 

UnconTROLLed

perfection
If the idiots at Amazon learned to use more then one piece of scotch tape on a 40LB box, maybe so many wouldn't get damaged in our network
All done by machine, not hand. That's why the labels are always in weird places, get torn with the single piece of tape that wasn't aligned in the machine properly, etc. Run-of-the-mill service.
 
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