SurePost issues

[upschuck]

You don't think the two companies got together beforehand to work out the logistics?

I believe they are legally required to take any packages given to them that fall into their guidelines, with no discounts, there is no need for discussion. They really had no choice in the matter.

 

[UpstateNYUPSer(Ret)]

I am 100% certain there were countless meetings between the two before we started to offer this "service".

 

[worldwide]

Why do you say that? USPS doesn't give discounts, we are just another customer.

USPS does give discounts through programs such as Parcel Select. There are a variety of discounted rates for shippers with enough volume and they are also based on how far into the USPS system the packages are injected. The closer the packages are delivered to the final address of the receiver, the lower the shipping rates that the USPS offers.

The only reason services like FedEx SmartPost and UPS SurePost exist is because of the USPS Parcel Select program. Large companies wanted a "no frills" shipping service for light weight, low-value items and thus, Parcel Select was created. FedEx came out swinging with their product and started taking residential shippers from UPS so what was UPS to do?

Since large companies generally like to consolidate their shipping business with one carrier to get the best discounts, FedEx and UPS make offers for SmartPost/Surepost that are based on obtaining both light-weight residential shipments as well as commercial ground and air. Many times UPS has no choice but to offer Surepost rates to retain current ground residential business.

 

[IVE GOTTA PACKAGE 4U]

USPS does give discounts through programs such as Parcel Select. There are a variety of discounted rates for shippers with enough volume and they are also based on how far into the USPS system the packages are injected. The closer the packages are delivered to the final address of the receiver, the lower the shipping rates that the USPS offers.

The only reason services like FedEx SmartPost and UPS SurePost exist is because of the USPS Parcel Select program. Large companies wanted a "no frills" shipping service for light weight, low-value items and thus, Parcel Select was created. FedEx came out swinging with their product and started taking residential shippers from UPS so what was UPS to do?

Since large companies generally like to consolidate their shipping business with one carrier to get the best discounts, FedEx and UPS make offers for SmartPost/Surepost that are based on obtaining both light-weight residential shipments as well as commercial ground and air. Many times UPS has no choice but to offer Surepost rates to retain current ground residential business.

Wow! I finally agree with you.

 

[upschuck]

USPS does give discounts through programs such as Parcel Select. There are a variety of discounted rates for shippers with enough volume and they are also based on how far into the USPS system the packages are injected. The closer the packages are delivered to the final address of the receiver, the lower the shipping rates that the USPS offers.

The only reason services like FedEx SmartPost and UPS SurePost exist is because of the USPS Parcel Select program. Large companies wanted a "no frills" shipping service for light weight, low-value items and thus, Parcel Select was created. FedEx came out swinging with their product and started taking residential shippers from UPS so what was UPS to do?

Since large companies generally like to consolidate their shipping business with one carrier to get the best discounts, FedEx and UPS make offers for SmartPost/Surepost that are based on obtaining both light-weight residential shipments as well as commercial ground and air. Many times UPS has no choice but to offer Surepost rates to retain current ground residential business.

Agreed, but no contract is required for those services. Kind of like pre-sorted mail.

 

[brownmonster]

Agreed, but no contract is required for those services. Kind of like pre-sorted mail.

You know that how?

 

[upschuck]

You know that how?

Basically, process of elimination.

 

[UpstateNYUPSer(Ret)]

Basically, process of elimination.

How do you explain the revenue breakdown?

 

[upschuck]

How do you explain the revenue breakdown?

Haven't seen it.

 

[FrigidAdCorrector]

Frigid, there is something about surepost that I've never seen talked about. I ran into this during peak because I ordered a majority of my holiday stuff online. Merchandise would be picked up by UPS, then handed over to USPS at the destination city. Then it would sit for several days and not move. Bottom line, USPS is in direct competition with UPS. It is in their best interest to make us look bad to the public and shift business to them. The average person might order a widget from somewhere across country. ABC Widget Co. sends the customer an email saying their merchandise shipped via UPS. It rock and rolls across country just fine via the UPS system. We hand it over to USPS for final delivery and say it doesn't get priority because its surepost. Perhaps if the system at USPS can only deliver x amount of volumn and some has to be left behind, they leave surepost stuff and deliver the 100% USPS handled packages. You and I know what happens because we know how the system works and we track our packages. The average customer just knows that he ordered the widget, it was shipped UPS, and when he came home from work, it was on his porch, only it took 8 days instead of the usual 4 or 5 that it normally takes when UPS delivers it from point A to point B. I know it happens because it happened to me during peak on more than a couple of occasions. It makes UPS look bad to the customer, and they may take their business to a competitor (USPS) in the future. When you take packages out of UPS employees' hands, stuff happens out of our control, and it's usually not good. Sorry for the long post.

At the same time though it does say "Tendered to Post Office" on the package which people know is the post office. They saw we got it from A to B in a decent amount of time. Plus you are also talking about a low cost slower form of delivery. People didn't pay for the premium services, and chances are they got it for free. Those aren't the people who are going to ship with us anyways. Those are the people who go to the post office to send the 7 dollar Priority mail box to grandma.

You get what you pay for.

 

[FrigidAdCorrector]

I believe they are legally required to take any packages given to them that fall into their guidelines, with no discounts, there is no need for discussion. They really had no choice in the matter.

Took me 30 seconds to find business discounts on their website. With the volume we are giving them on a daily basis there is no way we are paying a full rate. Not to mention we are only paying for final delivery.

Plus you are forgetting who runs the Post Office. Politicians. You think they don't want to save money come campaign time when they are sending out thousands upon thousands of mailings?

Haven't seen it.

Then how do you know we don't get a discount?

 

[upschuck]

Took me 30 seconds to find business discounts on their website. With the volume we are giving them on a daily basis there is no way we are paying a full rate. Not to mention we are only paying for final delivery.

Plus you are forgetting who runs the Post Office. Politicians. You think they don't want to save money come campaign time when they are sending out thousands upon thousands of mailings?

Then how do you know we don't get a discount?

My point is no negotiating discounts, no contracts, they are for anyone that meets the thresholds

 

[FrigidAdCorrector]

My point is no negotiating discounts, no contracts, they are for anyone that meets the thresholds

But my point is that doesn't mean we don't have a contract with them. All of those things they are taking it from the shipper through final delivery. We are transporting it from the shipper to the final delivery location.