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United Parcel Service, Inc. Message Board

  • dudesbag dudesbag May 17, 2014 7:43 AM Flag

    Letter to Kurt Kuehn

    Monday I sent a letter to CFO Kurt Kuehn. I argued the merits of waiting a year to see how the impact of the dimension weight pricing modification move to be implemented by FDX in 2015 might play out in the eyes of customers. The letter mentioned loyal customers, an immediate inflow of volume, the opportunity to leverage that inflow with sales person contact to thank them and pursue others volumes such as the more margin friendly international or air services and simply differentiating ourselves thru the good will of shippers/receivers everywhere. Additionally, I mentioned that when industry analysts and business magazines look at the two companies they might take a less than favorable view about their other abysmal business practice of the independent contractor home delivery model. Hopefully, articles will connect the "extreme profit mania of Mr. Smith at the expense of everyone else" fervor that is the hallmark of that company. I'm looking forward to a response.

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    • Economics will dictate UPS' response: Will more revenue be generated if UPS does not follow FedEx and wins new business from customers that leave FedEx for UPS? Or, will more revenue be generated if UPS matches FedEx? As a shareholder, I want UPS to maximize revenue and return to shareholders. Since FedEx would most likely give special concessions to their largest ground shippers so the change would not affect them (and so they would not divert to UPS), UPS most likely would generate the most revenue from implementing dimensional weight pricing for ground. There is simply too much money to be left on the table if UPS does not make this change in dimensional weight pricing.

      Sentiment: Buy

      • 1 Reply to thebestevidence
      • Besteveidence- don't you think it might be wise to monitor the impact for at least 6 months before simply matching? It's not like we were projecting this new revenue stream possibility into our FY 2015 advice to investors and analysts. We were already looking to close in on $6/share EPS even without this "gift." I'd like to think we would be keeping our loyal customer's interests in mind as we gather information about this decision. JMHO....

    • lets hope you get a reply, but I doubt it will come , let us know

      Sentiment: Buy

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