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Old 08-27-2012, 12:16 PM
 
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As others have stated, it depends on your level of corporate discount. I've seen discounts range from 25% TO 80%. I've seen companies who spend $1,000,000 a year on International Express with FedEx get a 50% discount, just as I've seen a company who spends $50,000 a year on the same service get a 62% discount. Pretty crazy. Just goes to show that there's room for negotiation. FedEx, UPS & DHL will try and give you as little discount as possible and retain your business - that might mean giving a small business a lower rate on imports versus exports, or lower rates from Asia, but higher from Europe.

Without wishing to sound like an advertisement, I own a company that re-sells DHL Express and 99 times out of 100 we can be cheaper than FedEx and UPS (and DHL Express themselves) for a small business owner. We're able to do that because we don't have to abide by the normal "Discount/Volume" chart that the carriers all go by. Since our costs are fixed to us, we can pass the same discounted price along to a small biz that ships 1 item a month or 100 items a month. Since moving from one carrier to another can be a hassle, I normally don't advise anyone to change unless they can save 10%>.
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Old 12-02-2012, 10:43 AM
 
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Default Wrong

Quote:
Originally Posted by user_id View Post
Neither is "generally" cheaper, if one was generally cheaper the other would be out of business.

Look at walmart... which on many things is actually more expensive than others.

Medically they are the best for me (prescriptions & meds) ....

But on grocery, its been 10 yrs since Walmart was a better price for my family.


Point being, being more expensive is not always a deal killer.
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Old 12-04-2012, 03:02 AM
 
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i wouldnt use dhl if it was free
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Old 12-04-2012, 04:09 AM
 
1,567 posts, read 2,692,797 times
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Quote:
Originally Posted by wawaweewa View Post
It's not about greed.

Fed Ex's bread and butter was never in the high volume, cheap product, non express market. That is UPS's market. Fed Ex tried to agressively compete with UPS on that front but they realized that they can't. UPS was simply built from the ground up for the high volume, cheap product, non express market.

Fed Ex is known for their express bulk transport of high value goods for corporate customers (high value electronics, precious metals/stones, documents, precision machinery, etc.).

If I had to transport 100k worth of gold I'd never use UPS even if they were 10x times cheaper than Fed Ex. On the other hand, if I had to transport 100 boxes each with a value of ~$100, I'd never use Fed Ex.

I dealt with a UPS account that shipped about 45k packages a month from th East coast. The negotiated rate (non oversized; 1lb-~10lb) was around $6.75 - $8.50 depending on the destination of the package. That's the general pricing and prices can vary higher by $1-$4 due to weight and dimensions of package).

From what I gathered looking at the pricing structure, UPS makes a ton of money on various fees such as insurance, signature required, and rush delivery. Their margin on regular ground must be razor thin and most likely simply covers their operating expenses.
This post is dead on
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