UPS and FedEx Go to War Over Your Business

Smaller companies are winning the kinds of price breaks that normally go only to big shippers.

Good Morning!

Here are today’s highlights:    

• Lou Mosca says you need to understand what you’re paying for a loan.

• With the election over, staffing experts are predicting a bump in hiring.

• Inc. magazine thinks private equity has gotten a bad rap.

• Demand for office space in most big cities is finally picking up.

LOGISTICS

FedEx and UPS are locked in a price war for your business: “UPS and FedEx, which began offering discounts to larger customers last year, are now aggressively chasing smaller customers, giving them breaks that are typically reserved for bulk shippers. Until recently, it was unheard of for shippers with less than $500,000 in annual shipping expenses to get a break on fuel surcharges, for example, said Robert Persuit, an executive at ShipMatrix, a shipping consulting firm. Now, he said, ‘no customer is too small to be considered for discounts.’”

• “Longtime UPS customer Michael Goldblatt, whose company in Johnstown, Pa., ships tire chains, said a FedEx salesman this year offered him a double-digit percentage-point discount. ‘They were eager and hungry,’ Goldblatt recalled.”

• “The FedEx representative asked him to keep mum about the offer and even reached over to scribble across Goldblatt’s notes when the shipper jotted numbers down, Goldblatt said. Goldblatt, whose annual shipping costs are around $500,000, ended up staying with UPS, which he said offered him an even bigger discount than FedEx. The savings allowed him to lower prices on some items.”

• “The U.S. Postal Service has been gaining market share in ground parcels. Amazon now delivers more than two-thirds of its own packages, and Walmart has established its own same-day delivery service. Amazon and other retailers have been trading down to cheaper delivery options, using lengthier ground services to accommodate inflation-pinched consumers.” READ MORE