Hmmm, fuel is down but not shipping charge

I was wondering why if my rates were raised to offset increased fuel costs last year, then why, now that fuel is less than half what it was then, am I still paying the increased rate?

Odd what you don't think about, isn't it?

Ha! Because you're talking about greedy businesses.

Not that there's anything wrong with that, I mean, they do like their money. But it does kinda seem unfair.. doesn't it?

My local pizzeria almost doubled their prices becasue of fuel costs......I have yet to see the prices go down a penny????

Why would they cost themselves money if they didn’t have to?

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Originally Posted by wilomn

I was wondering why if my rates were raised to offset increased fuel costs last year, then why, now that fuel is less than half what it was then, am I still paying the increased rate?

Odd what you don't think about, isn't it?

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Wes its because they know you are a rich man :rolleyes:.Truth is they are GREEDY PIGS :8::8:.I would call them and see what they say :gj:

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Originally Posted by Mischke

Why would they cost themselves money if they didn’t have to?

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Well if enough people stop buying from them or using there services because of high costs they stand to lose even more in the long run.Why pay a higher price when you can go elsewhere.

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Originally Posted by Mischke

Why would they cost themselves money if they didn’t have to?

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They raised prices when the fuel went up...but now the fuel is 1/2 of what it was...but the price stayed at the inflated price....

It's kinda like property taxes. Due to the current real estate market my house is now worth quite a bit less than it was when I bought it two years ago, but somehow I am still paying the same amount of property tax. Gotta love it.

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Originally Posted by wilomn

Odd what you don't think about, isn't it?

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Trust me, I think about it!

Last year it was fuel, this year it will all be blamed on the economy.

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Originally Posted by mlededee

It's kinda like property taxes. Due to the current real estate market my house is now worth quite a bit less than it was when I bought it two years ago, but somehow I am still paying the same amount of property tax. Gotta love it.

Trust me, I think about it!

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My accessment when down and the taxes went up!

Here is the opinion of a greedy greedy trucking company owner....

But seriously I know that when fuel prices skyrocketed it took me almost a year to get my prices to where they should be. I will not be dropping them anytime soon. I took it in the pants so I could stay in business , now it is time for me to make up some of that lost money.

I have dropped my prices some to become more competitive, but not to where they were before the fuel hike.

After this summer if fuel prices are still reasonable I will be dropping my prices dramatically.

It is not because I am greedy, it is because fuel prices are going to go back up this summer and we do not want to have our cost going up and down...

Also on a side note the price of natural gas is going back up... don't believe me watch it about June it will start to rise.

I am the evil man in the drilling industry... I know these things.

Hope this helps some understand why the charges are the way they are.

This is not the case with every business just mine. I know there are some that over inflated their cost and called it on fuel and now that fuel is going down they already have you paying that cost why go back down?

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Originally Posted by wilomn

I was wondering why if my rates were raised to offset increased fuel costs last year, then why, now that fuel is less than half what it was then, am I still paying the increased rate?

Odd what you don't think about, isn't it?

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Same as everything else ...Seems once they can get a price of anything high and ppl are still having no choice but to pay anyway.
Seems like the price kinda sticks. Ive watched my grocery bil generally go up about 10 bucks every 2 weeks and I buy the same stuff.

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Originally Posted by hoax

Here is the opinion of a greedy greedy trucking company owner....

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Nice to meet another hauler. :D How many trucks have ya got? Do you still drive, yourself? I used to be an O/O, lost my hind-end back when fuel touched three bucks a gallon. My hat's off to you for making it through last year.

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Originally Posted by Shadera

Nice to meet another hauler. :D How many trucks have ya got? Do you still drive, yourself? I used to be an O/O, lost my hind-end back when fuel touched three bucks a gallon. My hat's off to you for making it through last year.

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I am in an incredibly unique situation. I use mostly O/O I have one of my own. I drive when I have to but I have so much going on I just don't have time to.

I also work in the oil patch in North Texas, so we get to charge more when fuel goes up and the drilling companies pay it. They have to, if not the rigs go down, and a rig sitting around costing $50,000 a day.... They pay what ever it takes.

We had a hard time this past year with fuel, we give our O/O a fuel card so we carry their fuel cost for them. We made it through the first year.... but it helps that we had almost $3,000,000 in sales! I am so fortunate to be in the area and situate that I am in.

Do you still have your truck? I hope you can make it up this year. Good luck brother, this first 6 months we will have a hard time we will only have 1/4 of the rigs we had last year. After June the drilling will pick up and life will get back to normal.

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Originally Posted by wilomn

I was wondering why if my rates were raised to offset increased fuel costs last year, then why, now that fuel is less than half what it was then, am I still paying the increased rate?

Odd what you don't think about, isn't it?

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That is pretty much the same on every product and service in American. Everyone and everything raised their prices because of the cost of oil.... but you sure as hell dont see them prices coming back down now that oil has went back down.

Burn all corporations to the ground, I say.

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Originally Posted by hoax

Do you still have your truck? I hope you can make it up this year. Good luck brother, this first 6 months we will have a hard time we will only have 1/4 of the rigs we had last year. After June the drilling will pick up and life will get back to normal.

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Sister. ;) I was one of the few solo lady drivers out there. No hairy legged pot bellied freighthauler here. LOL I ended up having to sell the truck at a huge loss which just broke my heart because I was only about twenty grand from paying it off. I'd had her since she was new and was the first to fart in the seats. I hauled mostly meat and beer which were some of the better paying loads I could find and lumped it myself to save those outrageous fees at the other end. I usually did a produce backhaul. Fuel just kept going up, and the surcharges weren't enough to cover it. I was hauling for Rocor out of OKC, and when they sold out to Prime I just threw my hands up and got out. I drove local company stuff for a while and had a good gig driving into downtown Pittsburgh every day to deliver produce.

I hung up the steering wheel for good a couple years ago, but I still get the itch to chase the white line once in a while. I miss falling asleep to the purr of the caterpillar and the smell of diesel.

Best of luck and be safe out there. Keep the bugs off your glass and the bears off your... you know. :D

Part of it is because some large companies buy their fuel months ahead of time and have a filling station where they fill the tanks or trucks, airplanes, busses. etc.
So, they spent 4.20 on gas and still have 40% of that fuel in the tanks that they need to remove but can't take a loss on the fuel.
It's not the same with every company, but the shipping companies i know that deliver to the airports store the fuel at the airports. The airlines bought the fuel months ago and since the amount of shipped goods dropped, and the amount of travelers dropped, they still have the expencive fuel sitting in their tanks.
Just what i have seen, by no means is that every company.

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Originally Posted by Shrap

Burn all corporations to the ground, I say.

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Yeah! Hail Communism!

People complaining about prices not going down...how about people making the decision to earn more? Take a second or part-time job....Go to school...ask for more responsibility at work to justify a raise...market your business better...do something, anything, to be more productive. Seem like the working generation here can't get over their sense of entitlement, and make a change to combat the problem, rather than just complain about it.

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Originally Posted by mlededee

It's kinda like property taxes. Due to the current real estate market my house is now worth quite a bit less than it was when I bought it two years ago, but somehow I am still paying the same amount of property tax. Gotta love it.

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Originally Posted by dsirkle

My accessment when down and the taxes went up!

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Ditto, ours too. :mad:

On a side note about property taxes out here, it's a fixed rate. If your house appraises for less now than the last time it was appraised, you should be paying less in taxes.

Check with your local appraiser. Be sure they are licensed and bonded before you allow them to do anything for you professionally though.

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Originally Posted by wilomn

I was wondering why if my rates were raised to offset increased fuel costs last year, then why, now that fuel is less than half what it was then, am I still paying the increased rate?

Odd what you don't think about, isn't it?

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Happens all the time with all kinds of items. Prices never go back down unless forced to by outside pressure.

As much as it's a good thing to talk about issues and communicate - this thread totally bums me out. almost makes me mad! where's my rage face.... :rage: there we go! im ticked!

I guess what really gets me is when do we, we as a whole, stop striving for ever greater profits and become able to be happy with what we have?

Company A makes 200 mil in profit one year. The next year, even though costs are the same if not lower, they only make 100 mil.

Now, they have MADE 100 million in profit, the company has paid ALL expenses and come out 100 million ahead at the end of the year.

Why then do they show a 100 million dollar loss? How can you lose something you never had? The company did not make as much as the year before but they were still in the black, they still made money. Not as much as the year before but still well into making money for everyone.

That's a tough nut for me too.

Is that chase for profit percentage increase really the measurement you wish to be judged by? If costs go down and profit stays high, I don't get sticking it to the consumer.

I get profit, I am all for it. To a point.

If I had more than enough I don't know that I'd strive for even more with the same fervor that I see so often, as with the shipping companies I started this thread about.

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Originally Posted by elevatethis

Yeah! Hail Communism!

People complaining about prices not going down...how about people making the decision to earn more? Take a second or part-time job....Go to school...ask for more responsibility at work to justify a raise...market your business better...do something, anything, to be more productive. Seem like the working generation here can't get over their sense of entitlement, and make a change to combat the problem, rather than just complain about it.

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Ignorance and arrogance..... what a combination!!

A lot of companies set up yearly contracts for their fuel. Last year while fuel was on the rise companies went for long term 1 year contracts with the anticipation the fuel was going to continue to rise to a given point of supply and demand balance at a given price. Generally the way most products work. The company I work for is still paying $4.29 a gallon of Diesel and will do so until the end of the year. That is the rate the corporate office locked in for us. We now have to figure out other places to make up for the cost over run in our overall heat rate. Which is based on Cost of making enough BTU's to make 1 Kilowatt hour of power.

The company I work for trades shares on the NY Stock Exchange. We have obligations to our share holders to make money for them. If we can not prove the business is viable and not make money for them they sell our stocks and the value goes down which results in less business capitol we can take short term loans on. At this point things continue to cascade and eventually we start closing plants, putting thousands of people out of work, and driving up the cost of the KiloWatt hour to a point that our remaining operating plants become profitable again. We already are planning on the closing of one plant in 2010. This was not due to it not being profitable, but rather the 300 million dollar cost of installing scrubbers does not make sense. It is better to close the plant, leave it sit and rot, find another piece of land, and build a brand new plant that meets current regulation. Now due to GM, Ford, and Crysler not making as many cars their plants do not run as much and use as much power. Then since they are not calling for as much steel and other materials those plants are not running as much and are not using as much power. Discussions are being made for an immediate closure of the plant to reduce supply and thus keep prices at a profitable level.

No it isn't the business that is greedy. It is the people who own shares of the companies that for some reason want to see their investment grow and not dwindle. You know all those people who have 401K programs and such. Those greedy people that push the companies to make money! Oh wait I'm one of them. :)

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Originally Posted by Gloryhound

Discussions are being made for an immediate closure of the plant to reduce supply and thus keep prices at a profitable level.

No it isn't the business that is greedy. It is the people who own shares of the companies that for some reason want to see their investment grow and not dwindle. You know all those people who have 401K programs and such. Those greedy people that push the companies to make money! Oh wait I'm one of them. :)

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Yes, the drive for profit. It is in control of many like you. It justifies all sorts of creepy things. I MUST do this because of the stock holders.

BULLSNOT.

You owe it to your stockholders not to make such stupid decisions as to lock yourself into contracts that make you pay twice what a necessary product costs everyone else. What happened to your economic forecasts? No one there reading a paper? Not watching the news? Or are all you and your 401K carrying friends so busy bending over to allow profit to remain high that you forget to take a look around you?

No point in actually taking some of those profits and improving production, no no no, that would cut down of profits. For the short term. We can't have that can we? Going two or three or maybe five years without those profits doubling every year just isn't acceptable. Of course the fact that putting money into infrastructure, like those scrubbers or new plants, would not only increase profits in the long term, but make the world a slightly better place for not only stock holders but the rest of us poor schmucks who don't have 401ks.

I guess to guys like you, from what you have said, that profit, no matter the cost, is the goal.

Go get em tiger, go get em.

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Originally Posted by wilomn

Yes, the drive for profit. It is in control of many like you. It justifies all sorts of creepy things. I MUST do this because of the stock holders.

BULLSNOT.

You owe it to your stockholders not to make such stupid decisions as to lock yourself into contracts that make you pay twice what a necessary product costs everyone else. What happened to your economic forecasts? No one there reading a paper? Not watching the news? Or are all you and your 401K carrying friends so busy bending over to allow profit to remain high that you forget to take a look around you?

No point in actually taking some of those profits and improving production, no no no, that would cut down of profits. For the short term. We can't have that can we? Going two or three or maybe five years without those profits doubling every year just isn't acceptable. Of course the fact that putting money into infrastructure, like those scrubbers or new plants, would not only increase profits in the long term, but make the world a slightly better place for not only stock holders but the rest of us poor schmucks who don't have 401ks.

I guess to guys like you, from what you have said, that profit, no matter the cost, is the goal.

Go get em tiger, go get em.

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yes thats the goal for shareholders and companies.
they dont give a crap about anyone but the shareholders.
just like every other business that has 100%-500% markup on goods

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Originally Posted by elevatethis

Yeah! Hail Communism!

People complaining about prices not going down...how about people making the decision to earn more? Take a second or part-time job....Go to school...ask for more responsibility at work to justify a raise...market your business better...do something, anything, to be more productive. Seem like the working generation here can't get over their sense of entitlement, and make a change to combat the problem, rather than just complain about it.

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I make plenty of money, trust me, I'm talking upper 10% of the US income........I still don't like paying $4 for a slice of pizza.

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Originally Posted by wilomn

Yes, the drive for profit. It is in control of many like you. It justifies all sorts of creepy things. I MUST do this because of the stock holders.

BULLSNOT.

You owe it to your stockholders not to make such stupid decisions as to lock yourself into contracts that make you pay twice what a necessary product costs everyone else. What happened to your economic forecasts? No one there reading a paper? Not watching the news? Or are all you and your 401K carrying friends so busy bending over to allow profit to remain high that you forget to take a look around you?

No point in actually taking some of those profits and improving production, no no no, that would cut down of profits. For the short term. We can't have that can we? Going two or three or maybe five years without those profits doubling every year just isn't acceptable. Of course the fact that putting money into infrastructure, like those scrubbers or new plants, would not only increase profits in the long term, but make the world a slightly better place for not only stock holders but the rest of us poor schmucks who don't have 401ks.

I guess to guys like you, from what you have said, that profit, no matter the cost, is the goal.

Go get em tiger, go get em.

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Maybe some people are willing to invest in a business that is going to make the value of your investment less over the next year. I personally believe it is foolish to do this. Maybe employing an employee who makes more than he adds to the value of the company is something some employers believe to be a good thing. I think it is a way to destroy a business.

Call me what you want, but I like getting a paycheck. I like it when I get a raise. I like when the company I work for makes enough to give me a bonus. I also like to see my 401K's increase as well as my Pensions.

Yes, I guess I am one of those greedy money hording people you hold a grudge against. I wonder who else here would not like to see the same thing happen in their life.

All those who currently get a paycheck raise your hand if you would like to see them stop?

All those who no longer want any raises raise your hand?

All those who wouldn't want a bonus raise your hand?

All those who want to see their 401K's and other stock investments drop in value raise your hand? (Only applicable to those who have 401K's and stock investments.)

All those who want to see their pension funds decrease raise your hand? (only applicable to those with pensions.)

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Originally Posted by Gloryhound

Maybe some people are willing to invest in a business that is going to make the value of your investment less over the next year. I personally believe it is foolish to do this. Maybe employing an employee who makes more than he adds to the value of the company is something some employers believe to be a good thing. I think it is a way to destroy a business.

Call me what you want, but I like getting a paycheck. I like it when I get a raise. I like when the company I work for makes enough to give me a bonus. I also like to see my 401K's increase as well as my Pensions.

Yes, I guess I am one of those greedy money hording people you hold a grudge against. I wonder who else here would not like to see the same thing happen in their life.

All those who currently get a paycheck raise your hand if you would like to see them stop?

All those who no longer want any raises raise your hand?

All those who wouldn't want a bonus raise your hand?

All those who want to see their 401K's and other stock investments drop in value raise your hand? (Only applicable to those who have 401K's and stock investments.)

All those who want to see their pension funds decrease raise your hand? (only applicable to those with pensions.)

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When you stand on the edge of a cliff, do you see only the horizon or do you look down to see what may be at your very feet?

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Originally Posted by Shadera

Sister. ;) I was one of the few solo lady drivers out there. No hairy legged pot bellied freighthauler here. LOL I ended up having to sell the truck at a huge loss which just broke my heart because I was only about twenty grand from paying it off. I'd had her since she was new and was the first to fart in the seats. I hauled mostly meat and beer which were some of the better paying loads I could find and lumped it myself to save those outrageous fees at the other end. I usually did a produce backhaul. Fuel just kept going up, and the surcharges weren't enough to cover it. I was hauling for Rocor out of OKC, and when they sold out to Prime I just threw my hands up and got out. I drove local company stuff for a while and had a good gig driving into downtown Pittsburgh every day to deliver produce.

I hung up the steering wheel for good a couple years ago, but I still get the itch to chase the white line once in a while. I miss falling asleep to the purr of the caterpillar and the smell of diesel.

Best of luck and be safe out there. Keep the bugs off your glass and the bears off your... you know. :D

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Sorry that it turned out that way. I was never over the road only local, i do not really miss being in the truck.

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Originally Posted by elevatethis

Yeah! Hail Communism!

People complaining about prices not going down...how about people making the decision to earn more? Take a second or part-time job....Go to school...ask for more responsibility at work to justify a raise...market your business better...do something, anything, to be more productive. Seem like the working generation here can't get over their sense of entitlement, and make a change to combat the problem, rather than just complain about it.

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That would be taking responsibility for ones self, don't be stupid, we should be poor trash to make the people with no ambition in life feel better.

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Originally Posted by wilomn

Yes, the drive for profit. It is in control of many like you. It justifies all sorts of creepy things. I MUST do this because of the stock holders.

BULLSNOT.

You owe it to your stockholders not to make such stupid decisions as to lock yourself into contracts that make you pay twice what a necessary product costs everyone else. What happened to your economic forecasts? No one there reading a paper? Not watching the news? Or are all you and your 401K carrying friends so busy bending over to allow profit to remain high that you forget to take a look around you?

No point in actually taking some of those profits and improving production, no no no, that would cut down of profits. For the short term. We can't have that can we? Going two or three or maybe five years without those profits doubling every year just isn't acceptable. Of course the fact that putting money into infrastructure, like those scrubbers or new plants, would not only increase profits in the long term, but make the world a slightly better place for not only stock holders but the rest of us poor schmucks who don't have 401ks.

I guess to guys like you, from what you have said, that profit, no matter the cost, is the goal.

Go get em tiger, go get em.

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You obviously have no concept of running a business. It takes balance and hard work, sleepless nights, and tearing your hair out when things go wrong. Just because you are complacent about your position in life why does that make me an evil person because I want to better myself.

I have seen you attack people time and time again with pointless posts that have no real substance to them. You should really know what you are talking about before making your self look silly. It takes little effort to see your agenda, I am sorry that you do not have wealth an prosperity, but don't you worry you to have the opportunity to make your self better instead of sitting at the status quo! Do not attack me for wanting to make money and provide the best life for my self and my children and any one else I can.

I am not saying that your complaints have no place. You have some genuine concerns but most of them just show your extreme prejudice against the working class.

I love two things.

First, the way some people ASSume a post made to the world at large is directed to them individually. That makes me laugh actually.

Second is the way certain parts of my posts, directed to the world in general and not at anyone in particular unless I've named you, are simply ignored.

I'm cool with it, sitting here in my viscous gruel of hatred and bile, but I still see it quite plainly. In fact it is so plain that I am simply at a loss to explain how it has failed to come to the attention of those who know so much more about the world and its workings than do I, a mere enemy of wealth and prosperity.

Oh yes, let it be known far and wide, the world over if you can, that I, The Great and All Knowing Wilomn, hate the fact that you make a good living. Proclaim it to all who will listen that I, Miserable Old Man barely able to make the status quo, hate you for making profit. Yeah, though it be with your dying breath, fail not to bring laughter and amusement as your faithful companions all the rest of your long and hopefully fruitful lives, you the world in general and you in particular those who think I bother to think of you when I write my ponderings.

Such heads you have. Are you by chance, either of you two esteemed colleagues, graduates of rutgers?

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Originally Posted by wilomn

I love two things.

First, the way some people ASSume a post made to the world at large is directed to them individually. That makes me laugh actually.

Second is the way certain parts of my posts, directed to the world in general and not at anyone in particular unless I've named you, are simply ignored.

I'm cool with it, sitting here in my viscous gruel of hatred and bile, but I still see it quite plainly. In fact it is so plain that I am simply at a loss to explain how it has failed to come to the attention of those who know so much more about the world and its workings than do I, a mere enemy of wealth and prosperity.

Oh yes, let it be known far and wide, the world over if you can, that I, The Great and All Knowing Wilomn, hate the fact that you make a good living. Proclaim it to all who will listen that I, Miserable Old Man barely able to make the status quo, hate you for making profit. Yeah, though it be with your dying breath, fail not to bring laughter and amusement as your faithful companions all the rest of your long and hopefully fruitful lives, you the world in general and you in particular those who think I bother to think of you when I write my ponderings.

Such heads you have. Are you by chance, either of you two esteemed colleagues, graduates of rutgers?

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That is the third time I have seen you make the Rutgers comment... Do you mean something by it?

The words you chose seem to be attacking corporations that work towards making record profits. I for one hope to double what i made last year. I think I can get 1.5X the profit because it is slowing down until this summer.

Mike

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Originally Posted by hoax

That would be taking responsibility for ones self, don't be stupid, we should be poor trash to make the people with no ambition in life feel better.

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So are you insinuating that I am poor trash with no ambition because I dont like greed?

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Originally Posted by Shrap

So are you insinuating that I am poor trash with no ambition because I dont like greed?

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Did he quote you?

Sorry for the double post. Anyway. The reason the price of shipping has not gone down is pretty simple.

People are still willing to pay it. Supply and demand. Price went up, people were willing to pay the price. Then when the price of fuel dropped, people continued to ship goods. As the shipping companies did not see a drop in items shipped, they were able to keep the price high because the demand stayed high. Want your shipping costs to go down? Use the power of your dollar.

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Originally Posted by Shrap

So are you insinuating that I am poor trash with no ambition because I dont like greed?

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Nope. I never said anything about greed that is a different thing all together...

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Originally Posted by Typical_08

Did he quote you?

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Sweet, thanks brother!

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Originally Posted by wilomn

When you stand on the edge of a cliff, do you see only the horizon or do you look down to see what may be at your very feet?

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Neither. I say my prayers and let god lead me where I need to go next. Since I've started doing that I've found the road has gotten a whole lot smoother.

From what I understand, the shipping rates were raised due to fuel cost. This raise caused some customers to seek other means of shipping. From what I read, FedEx and UPS either have, or are planning to raise their prices an additional 7% to offset the loss of business. This will surely mean a loss of more business, but big businesses that ship an enormous amount with them will most likely just pay the increase, so they will still make their money.

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Originally Posted by wilomn

When you stand on the edge of a cliff, do you see only the horizon or do you look down to see what may be at your very feet?

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i just keep walking like the roadrunner! if you look down then you fall

I can't claim to know very much about these things, but I have a running theory. Corporations and companies are not "evil", nor are they "good"... they are simply machines whose purpose is to increase profit. If they can charge you X amount and get you to pay for it, and make more money than charging a lesser amount, then they will. Additionally, corporations/companies do not "go green" because they are caring and love the earth; they do it because of public pressure to do so (image) and also because of governmental restrictions.

I agree that the head engineers of said machines, i.e. CEO's etc., can have a lot to do with the direction of the machine's movement and what to do with the money it produces. However, if all the machines stop running, then so does our economy.

To those of you who have a lot of experience in business I'd like to hear your opinions.

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Originally Posted by hoax

That is the third time I have seen you make the Rutgers comment... Do you mean something by it?

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Yeah, i was kind of wondering the same thing, Mike.
Bias against and individual's education takes no place in an argument about gas prices. Unless of corse the education was in ecomonics :P

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Originally Posted by icygirl

I can't claim to know very much about these things, but I have a running theory. Corporations and companies are not "evil", nor are they "good"... they are simply machines whose purpose is to increase profit. If they can charge you X amount and get you to pay for it, and make more money than charging a lesser amount, then they will. Additionally, corporations/companies do not "go green" because they are caring and love the earth; they do it because of public pressure to do so (image) and also because of governmental restrictions.

I agree that the head engineers of said machines, i.e. CEO's etc., can have a lot to do with the direction of the machine's movement and what to do with the money it produces. However, if all the machines stop running, then so does our economy.

To those of you who have a lot of experience in business I'd like to hear your opinions.

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Hmm, i'm not saying that i know the most about business either, but i did run a few small businesses.
I found out a few interesting things. I ran a retail store and we had our larger 'parent' corporation (Luxottica) ship us all of our stuff. In 2006 when sales were just starting to drop the company started charging the individual stores for the shipping. Not because sales dropped but because sales were up. We 'comped' 30% compared to 2005 and that was a drastic drop from the 62% comp up from 2004-2005. Now, why did they do that? Well, they saw we could afford it and there was no reason not to. The smaller stores were being micro managed to the point that caused many stores in october of 07 to collaps completely. Why did they collapes? Well, that was trifold.
-the greed of corporate... erm... Italy who wanted to take the dollar from the individuals instead of sticking with a status quo because sales were up.
-the lack of employee appreciation which caused the employees to see the raise in prices, raise in costs, and drop in paychecks and therefore stopping productivity
-and a lack of proper management in order to predict, resist, and reduce the collateral of any ecomonic bump
Was the economy directly responsible for this? No, it was Luxottica. When they pay .80 cents to make something sell it for 140.00 dollars, which is deemed medically necessary, they charge for shipping from the small companies because the 17,500% increase wasn't enough to cover the basic costs of labor, shipping, and payment to the employee there is a LARGE greed problem. THEN they charge 400.00 for a 2lb box to be shipped from the Chicago area to Elizabeth, NJ. THEN they started telling us to go to the airport and pick it up ourselves in order to avoid UPS ground charges. For me it was no problem because i worked right next to, and in, Newark Airport but it's insane to require this of people and offer no kind of compensation for doing it. It would have been less expensive to pay the ground charge then have 20 some odd people drive to an airport during rush hour.
Is every company like this? No, not in the slightest, it's just my personal experience with them.
Now that the economy is so far down the same company can't cut shipping charges much more, so what do they do? Theyraise the price of goods causing a large inflation rate because the CEO's want to keep their 10% a year raise. The shipping charge goes up, the price of goods go up, and then they realize they can get away with it for even longer and make even more money for the company in order to make up for its loss of sales the previous months.
It's common, it happens, and it happens alot. Running a small private company is SO much different because you can always get the option to shop around and look for lower, better, or more convenient shpping and palet rates.
Like i said, many people still have fuel and petrol from the months where the gas prices were very high and they can't take a loss on gas. In my opinion i think the shipping prices will either plateau or drop slightly within the next few months as the economy starts to improve again.
I'm not an expert... nor did i go to Rutgers :rolleyes:

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Originally Posted by Dragnbaron

In my opinion i think the shipping prices will either plateau or drop slightly within the next few months as the economy starts to improve again.

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I would not bet on that. Right now fuel is cheap because the economy is doing poorly. As soon as we start to recover, the price will increase, causing the shipping prices to either stay near the same, or rise.

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Originally Posted by Typical_08

I would not bet on that. Right now fuel is cheap because the economy is doing poorly. As soon as we start to recover, the price will increase, causing the shipping prices to either stay near the same, or rise.

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Good point.

but is it really cheap because of the ecomony or because of the rocky structure most of our petrol giving nations are in right now? The economic change isn't affecting the mid east like it is affecting the U.S. because the lahore stock exchange and even the emirates are doing fairly well. BP is signing a contract to get 50% of Iraq's oil which will better the U.K. and the U.S..
I mean, i hate to say the war is about oil, which isn't not completely about, but it's a large part and the decreased stability in America isn't affecting the mid east. Israel's war hasn't affected the petrol prices either even though their ports are used to ship much of it. The Russian stop on all gas to Europe didn't affect our shipping because there is no direct correlation. The prices are set by the fuel companies, the largest being Exxon which is (i believe) an Iranian company (i may be wrong by that country, though). It's also the most expensive in the U.S.

I would have to say that it has a bit to do with both our economy, and that of the rest of the world.

Exxon is an American company, think of it as a grandson of Rockefeller's Standard Oil company. But I am sure that there are shareholders from all over the world.

The way gas prices are set are actually a compilation of about six different factors (or more depending on what you believe). I will get more into them later. Right now I have to go pick up my DD214. :)