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Analyze Expedited vs. Standard Pricing

1:49
6:41
102.4K views

At 1:49 in

Really Bad Advice for Small Business

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What happens here

The presenter reveals the quotes obtained: FedEx's overnight priority service costs $349.76, while standard ground shipping costs $63.29. UPS's overnight option is $333.33, with ground shipping at $74.52. This comparison clearly shows that customers are conditioned to pay a substantial premium (an extra $286.47 for FedEx, for example) for expedited service, even if the end result (package delivery) is the same.

Goal: Compare the collected quotes to highlight the significant price difference customers are willing to pay for faster service, thereby recognizing the market value of speed.

Tools and materials

  • FedEx Shipping Quote
  • UPS Shipping Quote

What they say

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Priority mail overnight for a 53lb box, $349.76. Shipping the exact same package today, so just one extra day, $261.38. And then regular delivery. Whenever it gets there, it gets there. $6329. Use that as a business formula for your pricing. If you have someone saying, "I need it now." Well, guess what? Ben Franklin, the punctual plumber does it. There's an electrical group that does it, Sparky or something. There's businesses that there are contracting businesses that their sole job is delivering fast. They don't do it any different than you do or I do. Shipping options, right? Yep. So, you got UPS Ground 7452. Okay. You got uh let's see 3day select which is still a ground service but isn't within 3 days. 17350. Okay. So why can't you price out your projects in accordance with how fast it has to be done and possibly put a little extra cha-ching in the in your back pocket? FedEx does it. UPS does it. Other places do it. Why aren't you why? Just tell me, brothers and sisters. Why aren't you

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