Smartpost offered to us contractors at lesser rate

[sadmanhere]

Once we go Isp nation wide they will throw everything they can on our trucks. I was at a contractor meeting help by a bunch of former express and ground bigwigs recently and they said we can expect to double or triple by 2021. They are weeding out the smaller contractors before they start adding smartpost, freight, and non overnight express. We are the cheapest option for this company and they are going to throw everything they have at us. With the money we have invested and continue to invest in it they know we can't refuse.

I don't want to be weeded out

 

[Fedexguyt]

I don't want to be weeded out

No me either. My point is if you don't do it now you will later

 

[sadmanhere]

No me either. My point is if you don't do it now you will later

well I don't want to do it now...not for 1.81 a stop . maybe if they can bump it up to 2.10 and guarantee packages wont be heavier than 5lbs...i'd do it. but not for 1.81 with no weight limits ...........

 

[bacha29]

well I don't want to do it now...not for 1.81 a stop . maybe if they can bump it up to 2.10 and guarantee packages wont be heavier than 5lbs...i'd do it. but not for 1.81 with no weight limits ...........

Not hard to figure this out. The stuff that's too large/heavy for the usps. will be shifted to fxg.

 

[It will be fine]

Not hard to figure this out. The stuff that's too large/heavy for the usps. will be shifted to fxg.

Fedex basically pays the postage rate for smartpost. So the heavier a package the more it costs. I'm sure that's part of their formula to determine which proximity packages will be redirected to Ground. They've told us they don't plan on sending much to Ground because shippers will figure it out and start sending more through smartpost while getting Ground service. I haven't decided if I'll take their offer or not yet. I need some more answers first.

 

[sadmanhere]

Fedex basically pays the postage rate for smartpost. So the heavier a package the more it costs. I'm sure that's part of their formula to determine which proximity packages will be redirected to Ground. They've told us they don't plan on sending much to Ground because shippers will figure it out and start sending more through smartpost while getting Ground service. I haven't decided if I'll take their offer or not yet. I need some more answers first.

read what they said on mygroundbiz they said if you already have a stop to the same address as a smartpost stop they are going to add it to your ground package stop...meaning you will only get paid what you get paid per package...
some only get paid .05 cents extra a package... they are probably going to do there best to prepack packages to add to a existing stop....they think of it as..hey you're already going there..carry this small box in the other hand for a nickel thanks....

 

[It will be fine]

read what they said on mygroundbiz they said if you already have a stop to the same address as a smartpost stop they are going to add it to your ground package stop...meaning you will only get paid what you get paid per package...
some only get paid .05 cents extra a package... they are probably going to do there best to prepack packages to add to a existing stop....they think of it as..hey you're already going there..carry this small box in the other hand for a nickel thanks....

I've been getting those for a while now. It works out well for me. They screw up fairly often too so stops I go to 3-4 times a week will occasionally only get a smartpost box. Right now I'm getting my regular rate for those. If I sign off on the new language I'll get the lower rate.

 

[sadmanhere]

I've been getting those for a while now. It works out well for me. They screw up fairly often too so stops I go to 3-4 times a week will occasionally only get a smartpost box. Right now I'm getting my regular rate for those. If I sign off on the new language I'll get the lower rate.

I really don't like that new language . first off the deal is to last for 2025...that's crazy to agree on a rate till 2025
and they can end it whenever they want with 10 days notice. but we cant. they should have given us the option to end it after say 60 days if we don't like it. there's nothing about what size these boxes will be.

 

[It will be fine]

I really don't like that new language . first off the deal is to last for 2025...that's crazy to agree on a rate till 2025
and they can end it whenever they want with 10 days notice. but we cant. they should have given us the option to end it after say 60 days if we don't like it. there's nothing about what size these boxes will be.

2025 is silly, it's also well past the end date of everyone's current contract so I'm don't see how that would be enforceable. An option to turn it off would be nice, especially for weeks when your training a new hire or the regular guy is on vacation.

 

[sadmanhere]

2025 is silly, it's also well past the end date of everyone's current contract so I'm don't see how that would be enforceable. An option to turn it off would be nice, especially for weeks when your training a new hire or the regular guy is on vacation.

if you stay and renew your contract they would hold you to this till 2025 it seems.
obviously fedex is making more money when we do it to oppose the post office.
why not work with us and give us that option to turn it off if it doesn't go well for us?

I don't see why anyone would take this offer.....it just doesn't make sense . maybe the math will make it seem its giving you a extra route or two and your guys can work easier...but its not taking into effect your time to manage another guy.
your time to maintain another truck...and the wear and tear on another truck and repairs....
and what about your cost/cut in ensuring those smartpost packages get delievered


does anyone have an idea how much money fedex is saving compared to using the usps?

 

[It will be fine]

if you stay and renew your contract they would hold you to this till 2025 it seems.
obviously fedex is making more money when we do it to oppose the post office.
why not work with us and give us that option to turn it off if it doesn't go well for us?

I don't see why anyone would take this offer.....it just doesn't make sense . maybe the math will make it seem its giving you a extra route or two and your guys can work easier...but its not taking into effect your time to manage another guy.
your time to maintain another truck...and the wear and tear on another truck and repairs....
and what about your cost/cut in ensuring those smartpost packages get delievered


does anyone have an idea how much money fedex is saving compared to using the usps?

What's needed are accurate volume projections. I have towns where I'm within 500 feet of every address. If they gave me all that smartpost it would be an additional 100+ stops per route. This would certainly not make financial sense for the reasons you mentioned. If they are just giving me a handful per route then it might work.

 

[Fedexguyt]

What's needed are accurate volume projections. I have towns where I'm within 500 feet of every address. If they gave me all that smartpost it would be an additional 100+ stops per route. This would certainly not make financial sense for the reasons you mentioned. If they are just giving me a handful per route then it might work.

That's what I'm trying to figure out. How many per city. How can they give you a contract and not give you a volume estimate. You need to prepare and in some cases,if the volume is high enough add trucks and drivers.

 

[bbsam]

That's what I'm trying to figure out. How many per city. How can they give you a contract and not give you a volume estimate. You need to prepare and in some cases,if the volume is high enough add trucks and drivers.

Doesn't this all sound like running a supplemental? All the responsibilities at half the compensation?

 

[sadmanhere]

What's needed are accurate volume projections. I have towns where I'm within 500 feet of every address. If they gave me all that smartpost it would be an additional 100+ stops per route. This would certainly not make financial sense for the reasons you mentioned. If they are just giving me a handful per route then it might work.[

Doesn't this all sound like running a supplemental? All the responsibilities at half the compensation?

wow the good old supplemental ..lmao...forgot that term.......

 

[It will be fine]

Doesn't this all sound like running a supplemental? All the responsibilities at half the compensation?

The only difference being there's no carrot of a contracted route after a few years.

 

[sadmanhere]

word is the few contractors that took the smartpost offer are getting with up to 40% more volume just like that.
if fedex is using usps I'm sure its costing them more money. they would not offer us a discount rate

 

[bbsam]

word is the few contractors that took the smartpost offer are getting with up to 40% more volume just like that.
if fedex is using usps I'm sure its costing them more money. they would not offer us a discount rate

40% more volume at 60% pay...no.

Again sounds like a supplemental.

 

[bacha29]

40% more volume at 60% pay...no.

Again sounds like a supplemental.

Same thing over and over again. During the life of a contract they see a chance to extract even more value from contractors so what do they do? . Simple shove another addendum in your face. Eventually you just don't give an expletive deleted anymore. By the way Smith and the boys at the CATO institute have always believed that the USPS should be a strictly private enterprise and this might just be a first step in that direction.

 

[59 Dano]

By the way Smith and the boys at the CATO institute have always believed that the USPS should be a strictly private enterprise and this might just be a first step in that direction.

Or not.

 

[bacha29]

Or not.

Please refer to the CATO Institute policy statement regarding the USPS dated April 1,2016 .