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Old 06-28-2013, 10:14 AM   #116
Fedaykin
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Join Date: Nov 2006
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Quote:
Originally Posted by Pony Boy View Post
Yes there is a certain business class that would be hit harder than others, for the example the food industry in most cases they would not be able to pass the increase on to the consumer.

In my case, I'm able to control the cost of doing business with a very simple program. I'm able to adjust my selling prices for goods and services on a daily basis as needed.

For example UPS and FedEx are able to adjust the shipping charges billed to their customers on a weekly basis by using a "fuel service charge", a simple way of passing the increase on to the customer. If the UPS customer chooses not to pass it on he is throwing money down the drain. USPS has fixed rates with no way to adjust to higher costs and they are currently 40 billion in the red.

http://www.aitaonline.com/Info/Gener...urcharges.html

A fuel surcharge is a fee that can be added to the freight charges that allows the hauler to be reimbursed for excessive fuel costs incurred in the performance of hauling freight from one point to another. This assessment doesn’t require governmental approval and you do not need to file an application with DOT to implement a fuel surcharge.
http://ycharts.com/companies/FDX/profit_margin
http://ycharts.com/companies/UPS/profit_margin

Still haven't looked up elasticity of demand eh?

Last edited by Fedaykin; 06-28-2013 at 10:18 AM..
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