Nessco's Freight Auditing Blog

FedEx Record Earnings
FedEx RECORD earnings for this quarter/year! FedEx has recently reported over $60,000,000,000.00 in annual revenue earnings. This record earning quarter and earning year has completely beaten analysts’ expectations. One of the main reasons FedEx has given for their great earnings: increased annual base rates. You are paying more annually!
As a paying customer, you should receive this news with shock. FedEx Reps have been telling their customers that FedEx has been LOSING money due to the MBG (Money Back Guarantee) and have been trying very hard to convince their customers to WAIVE their contractual rights to claim MBGs in exchange for an increased account discount. In reality, FedEx has NOT been losing money. They have actually been EXCEEDING EXPECTATIONS, and they themselves claim that this is due to increased annual base rates!
Consider this: when annual base rates are increased, the increased discount that your Rep offers you is then practically meaningless, because what you are really getting is a discount along with an increase, in exchange for a waiver of real money through refunds. This makes you wonder why FedEx Reps have been trying to convince customers to waive their valuable MBG rights in exchange for a weak discount.
The effect of an MBG refund is most potent and actually immune to annual base rate increases, since the MBG refund amounts will go up annually along with the increased annual rates. On the contrary, the effect of a pricing discount offered is much weaker and significantly affected by increased base rates, since the discount will only be returning a percentage from the increased base rates. MBG refunds are therefore much more valuable than discounts!
Say NO to MBG Waivers! The discounts are NOT worth it, given the annual base rate increases. Even if the discount seems to be worth it this year, it won’t be worth it next year after a new annual base rate increase takes effect. Don’t let your Rep convince you otherwise — FedEx is NOT losing money — they have recently reported a record $60 Billion in revenue earnings.
See the complete article published here: SEE MORE
Nessco Freight Auditing is the ultimate solution for your shipping refunds and credits.

Comments are closed.