Skip to comments.UPS vs. FEDEX: Ultimate Whiteboard Remix (UPS unions can't win in busines so they clear the field)
Posted on 07/05/2010 9:26:38 AM PDT by longtermmemmory
You may have heard the UPS is in quite the political fight with FEDEX. Though both are package-delivery companies, they're governed by totally different federal labor rules. As a result, UPS's workforce is much more heavily unionized than FEDEX'sand more than twice as expensive.
So now UPS is trying to get FEDEX reclassified under federal law as a way of screwing a competitor. That's horrendous, but it also makes a sick kind of business sense. And it also reveals the real villain: A government that is big enough to absolutely, positively guarantee it can screw any business. Overnight.
"UPS Vs. FEDEX" was produced by Meredith Bragg and Nick Gillespie (who also hosts). Approximately two minutes long.
This video is based on "Using Unions as Weapons," by Mercatus Center economist Veronique de Rugy, which appeared in the October 2009 print edition of Reason.
If anyone remembers the UPS strike a few years back, the issue was control of the pension fund NOT improvment of life for workers. (see now BP spill slush fund)
I don’t use UPS because of this kind of stuff.
Now that I know, I won’t eaither... and I’ve got 3 packages that are waiting for me to get off my butt and send out. FedEx, here, I come.
We’ve used FedEx at my work for about 4 years since droppping UPS.
Best decision we ever made.
So is UPS more than twice the rate of FedEx postage. Nope.
Sometimes the private sector just does not live up to promise of competition. The most egregious example I can think of is education. The public schools cost about $10,000 per pupil per year where I live. A secular private school will run about $25,000 for a year's tuition. Yet the public schools are bogged down with teacher salaries and pensions that are way more costly that those in the private schools. Where does the money go? With tuition fees as they are, one can kiss private education goodbye except for the rich.
In the US, if a farmer gets a new tractor and his neighbor is jealous, he starts trying to figure out how he can make more money and get an even better tractor. In Russia, the neighbor will start trying to find something he can report the first farmer to the KGB for and get him in trouble so they take his new tractor away and give it to him.
Pardon my asking, but what does your post, apparently about local schools, have to do with the competition between UPS and FedEx?
your secular private school is a “one off” while the public schools are just a volume business. Quantity vs quality.
Public schools have no incentive to produce quality. Public schols are there to bloat the administrators and inflate the collection of taxes.
Private schools are there to deliver the quality.
You can’t get a sports/muscle car performance out of a mass produced yugo or trebe.
False. That $10,000 per pupil per year cost generally does not include the costs of the physical plant and infrastructure or its depreciation, which is generally financed through separate budget mechanisms. That's just the cost of salaries, equipment and supplies, and maintenance.
And the previous poster's note on quality versus quantity is spot on, with one caveat -- people pay $25000 because that's what the market will bear. What that means is that the competing institution -- public schools -- is perceived as so abysmally bad by potential consumers that they are willing to pay 2.5 times that amount to avoid sending their children there.
Also, given that price point, I'm betting you're in a relatively high-end city like NYC, DC, Chicago, or SF. In those situations, the $25,000 price tag serves (1) to prevent the nice progressive mommy's from having to have their children associate with the "wrong" kind of kid, and (2) provides the children and their parents access to an exclusive network that will likely generate far greater returns in the future.
what does your post, apparently about local schools, have to do with the competition between UPS and FedEx?
It changed the subject.
UPS might not be more than twice the rate of FedEx, but what they don’t hit you with on cost they make up for in lack of service. They have very limited delivery hours, if a package needs a signature it’s very hard for them to switch delivery location and if you need to go pick it up it has to be at the main regional office they won’t send it to any of their many UPS stores. And they’re really fond of chucking deliveries over the fence.
how about this
unions= high cost = poor quality for the cost = coruption
This are not your great grandfather’s unions.
This UPS union power grab is about card check via a back door.
Just like pooobek schools don’t like competition, unionized UPS must be in financial desperation to have to regulate Fedex out of competition.
I wonder if Obama will take over UPS now since they are so weak in order to resort to these chicago way tactics.
That, and their crappy customer service and the lousy way their employees treat packages. Have I got some UPS horror stories for you...
Unions suck, mostly because of what they do to a members attitude.
But, of course.
“What can Barack do for you?”
Thanks for the vid. Here in L.A., their pick-up depots are located in the most screwed up, dangerous places in L.A...plus they close at 6 PM. How the hell are u spoosed to pick up your packages after work..in the most traffic congested cities in America?
Fedex depot is just 1 block away from me here in Hollywood BTW. Love Fedex.