Tuesday, December 13, 2011

And Like It:

Customers happy with rate increase, says UPS.
When UPS announced their price annual increase, they added a helpful piece of information: their customers don’t mind.

"Our customers are willing to accept adjustments like this because overall they still recognize the value UPS brings to the table," said Norman Black, Director of Global Media Services for UPS. The carrier, he explained, is “using technology and new products and services that help them reduce their overall transportation expense over and beyond whatever they may be spending on a specific package."

Like all of the parcel carrier’s “adjustments,” this one adjusted rates upward. The increases, virtually identical to those UPS has announced in each of the last five years, include an average 5.9 percent rate hike for UPS Ground shipments, less a single percentage point reduction in the fuel surcharge. Over the past five years, UPS rate increases total over 27 percent.

Can your business raise prices, year after year, in the teeth of an unprecedented economic downturn and almost nonexistent inflation? We’d love to hear from you, with your experience on how customers react to increases in rates.

So when UPS says, “Our customers are willing to accept adjustments like this because they still recognize the value UPS brings to the table." Do you agree?

Yes, I agree.               No, I disagree.

Thanks for your feedback!

Kirk Shearer
President
TOTALogistix
www.totalogistix.com
800-989-0054 x103

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