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FedEx (FDX) announces it will increase ground and home delivery shipping rates by a net average...

FedEx (FDX) announces it will increase ground and home delivery shipping rates by a net average of 4.9% in 2012; the increases match the rate hike announced by archrival UPS, as well as FedEx's 2011 rate hike.
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Comments (8)
  • untrusting investor
    , contributor
    Comments (9966) | Send Message
     
    Interesting. So how's that 2-3% CPI doing now? Sure looks like 40-60% more than BLS claims inflation is.
    2 Dec 2011, 04:28 PM Reply Like
  • tunaman4u2
    , contributor
    Comments (3075) | Send Message
     
    Total crap... everything people NEED is skyrocketing way past wages... way to go Fed... at this rate in 20 years we got 40% on foodstamps & debt of 50 trillion... middle class will be gone. We have bailouts for the poor & the rich.

     

    See how good you are bailing out every person & every corporation
    2 Dec 2011, 06:33 PM Reply Like
  • Jamiecal2
    , contributor
    Comments (14) | Send Message
     
    This increase has been telegraphed for while. It should be no surprise to any business person using their service. I wish I had the ability to raise my prices 4.5 percent a year. The reason they can raise their price with what I expect is a negligible decrease in volume is 1) The US Post Office is crippled 2) They are one leg of the remaining superior package delivery duopoly in the US. They provide excellent service. I can make a higher margin in many cases when a use them. Bully for FedEx. More issues for me...
    3 Dec 2011, 09:23 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3909) | Send Message
     
    Please save the US Postal service, at least they don't screw you with ridiculous rates.
    5 Dec 2011, 11:57 PM Reply Like
  • Jamiecal2
    , contributor
    Comments (14) | Send Message
     
    It would be nice that not being screwed by ridiculous. But since I've been in a family business for 37 years, the first 20 years of which I picked up the mail at the post office. I can testify to you first hand about the terrible inefficiencies, entrenched bureaucracy, and entrenched (there's that word again) indifference to customerservice. Things have 100% better in the past 5 years since the pressure has been on. However I see FedEx every day now and my driver stops at my plant everyday to look for the chance to pick something up and litterally runs from his truck to my doorstep. I have a FedEx rep that stops by once a week to see how we are doing. This is our busy time of year for shipping. I called him at 5:30 in the morning with what I considered to be a significant problem. He answered his cell phone from his bed side (I'm sure I woke him up) and by 7:30 am the same day the problem was solved. That's not going to happen with the USPO...
    13 Dec 2011, 07:04 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9966) | Send Message
     
    J12,
    True you as a businessman might get better service from FedEx or UPS, but you also pay 2-3x more for the service. And directly or indirectly that gets passed on to the customer.

     

    By way of example we used to do some international shipping of parcels. In virtually every case FedEx and UPS were 3-4x higher cost than USPS. In our business the customer paid 100% of the shipping charge and it was the customers option to pick USPS, FedEx or UPS. We provided the shipping charge for each one. Guess what.... 100% of customers choose USPS because it was the least cost shipping option and provided satisfactory service. So that should tell you all you need to know. When the customer has to pay and knows the cost, they will almost or always choose the least cost option. Now if the business can hide the cost and pass it on to the customer, then that a different matter.
    13 Dec 2011, 08:03 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3909) | Send Message
     
    On your side, it might be better because of the customer service, however for me, when I send something it costs a fraction of what FedEx and UPS charges and I have not had any reliability issues with them sending things first class mail.

     

    The USPS can be profitable, unfortunately congress doesn't know how to do it. Maybe Romney can get into office and turn it around.

     

    P.S.
    If I were that driver, I would change me cell phone number.
    13 Dec 2011, 07:44 PM Reply Like
  • Jamiecal2
    , contributor
    Comments (14) | Send Message
     
    Hi guys, by way of explanation, we are shipping frozen gourmet steaks with dry ice. Either to B2B customers or directly to the consumer. It would never work with the post office. They couldn't pick it up at our place and we could never deliver it to them. 98% of the time our customers pay the freight by choice. The rest of the time I use FedEx to ship time sensitive samples which I am obligated to pay for 100%. We do use the post office every day. Mostly to send out bills and receive payment for invoices. We have almost no errors or delays. The amount of mail we receive now is about 1/5 of what we received 15 years ago. I spoke to our post delivery person about that a couple of weeks ago. (We changed from pick up to delivery 2 years ago after they wanted 900 dollars a year for pick up service.) She said yes, that's a real problem for them. By the way, my post person remember me from 20 years ago and is really very friendly. She never neglects to stop by us. But the reality of the situation is that this is a much faster world than it was 15-20 years ago. Expectation have changed. And the Post Office is going to have to change too.
    8 Jan 2012, 03:19 PM Reply Like
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