Setec Astronomy
Well-known member
loudog2 said:I stated that sentence wrong. I'm not saying the flat rate shipping was their demise. Just that it probally cut into profit. Unless they had a deal with Fedex, which I doubt, but it's possible.
Have you ever negotiated a deal with a carrier? I haven't recently, but in the past FedEx would do almost anything if you would guarantee them a minimum number of packages a week (in our case they wanted 50) and drop all your other carriers. We couldn't do that, but even so they gave us a discount for a while which dropped an overnight letter from $14 to $10, and that was for us doing...nothing. It was simply an enticement to use them instead of UPS or Airborne.
PS I just looked up the FedEx Ground rates, a 10 lb. box, which would be about right for a gallon of 425, ranges from $6.06 to $10.15, depending on zone (with a $2.05 residential surcharge). Those are the rates if you walk in off the street with one package. I suspect the Flat Rate is a marketing tool that FedEx uses, they go to the business, say, "give us all your traffic, and we'll take every box at $5, and your customers will love it". I'm sure FK1 would do about 50 packages a day, and if you look at the FedEx rate charts, if people were ordering small stuff like a tin of wax, FedEx was probably making out on those small shipments that were close, even if they were losing on the heavy, far ones. Either way, I highly doubt that it was FK1, rather than FedEx that was taking the risk.