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Deceptive FedEx Rate Increase

Discussion in 'Picture Framing Business Issues' started by Larry Peterson, Jan 3, 2017.

  1. Larry Peterson

    Larry Peterson PFG, Picture Framing God

    FedEx's announced rate increase for 2017 was 4.9%. My most commonly used box is a 31x3x18" box for a newspaper frame. It weighs in at 6 pounds. I started having these boxes made last year after FedEx switched from weight pricing to Dimensional Weight pricing . The box I used before that was a uline 28x4x24 box; If I were still using that box, it would now cost $28.33 to CA. When it was weight based pricing it was around $17.00.

    Prior to the first it cost me $17.69 to send it from PA to CA. As of January first, the cost for the same package is now $21.70, a 23% increase. That's still cheaper than USPS but not much. If there is a DAS, then USPS is cheaper.

    Why does it cost $4.01 more to send this when the announced rate increase is only 4.9%? Because they changed the formula for dimensional weight.

    Prior to 1/1 the formula was L x W x H / 166. Now it is L x W x H / 139

    Changing the DW formula resulted in my package going from a dimensional weight of 11 pounds to 13 pounds.

    For most shipments east and some west of the Mississippi, it is now several smackeroos cheaper to ship that package via USPS rather than FedEx. My postman is going to be a lot busier. This morning he picked up 21 packages. At least half of them would have shipped via FedEx prior to 1/1.

    I know most of you don't ship a lot, but if you do, be prepared for sticker shock.
     
    FramerInTraining likes this.
  2. Rick Bergeron - CPF

    Rick Bergeron - CPF SGF, Supreme Grumble Framer

    Yep, I got the notice last week for the UPS, FEDEX & USPS changes. That notice did specify the new DW formula.

    You might want to check the USPS rate changes that are effective the last Sunday of this month. I'll see if I have the details. What USPS service would you be using?
     
  3. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    As of this morning, the UPS web site is still showing 166 as the divisor for Domestic shipments. It's 139 for International.

    I'm really surprised they didn't mirror each other.
     
  4. Jim Miller

    Jim Miller SPFG, Supreme Picture Framing God

    Look for more increases from FedEx, UPS, USPS, and others, as online retailers negotiate specially-discounted rates and services for their huge volumes of shipping.

    With Amazon Prime, for example, the shipping is usually free and deliveries often arrive overnight. Somebody has to subsidize that and, as usual, small companies get no concessions.
     
    FramerInTraining likes this.
  5. cvm

    cvm SGF, Supreme Grumble Framer

    Yep. The DW of the boxes we ship to the WC just went up a whopping 6.5 pounds.

    Larry, on your Etsy stuff do you use your own account or do you get a better rate through Etsy?
     
  6. Larry Peterson

    Larry Peterson PFG, Picture Framing God

    The Etsy rate is about 10% better.
     
    FramerInTraining and cvm like this.
  7. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    Yes, I have long surmised that as well.

    I still haven't figured out all the Amazon Prime facets. Sometimes when you order on Friday and expect delivery on Tuesday (normal UPS 2 Day) it arrive on SUNDAY via the USPS o_O:confused:
     
  8. MitchelC

    MitchelC MGF, Master Grumble Framer

    I have been using USPS... the heck with FedEx and UPS (know known as "FedUPs)! I make the box, stamp "Fragile" on the box front and back. It is a heck of a lot easier to send a box using USPS than the other two. When you stamp "Fragile" on a box and want to send it FedUPs, they want you to open it so they can inspect the way it is packaged!
     
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