This is an e-mail I received from UPS - Rate Increase

Question
To help you plan for the coming year, we want you to know about new UPS rates and services that will take effect January 1, 2007.
Next year, UPS Retail Rates will replace On-Demand Rates. This means your rates will be the same whether you prepare your shipments online and drop them off at any of our 63,000 locations and UPS Drop Boxes, or have your packages processed at The UPS Store® locations or UPS Customer Centers.
UPS published Retail Rates will change as follows*: UPS Ground service to commercial and residential destinations will have the same transportation charge, based on the lower commercial rate, and will increase 4.9%. The Ground residential surcharge that was previously built into the Ground residential rates will now appear as a separate charge on your UPS invoice. Air and International services will increase a net 4.9%, through a combination of a 6.9% increase in rates and a 2% reduction in the air fuel surcharge. In addition, the Delivery Area Surcharge and Residential Surcharge will both increase by $0.10.
On December 1, 2006, you may preview 2007 rates and accessorial charges, and download the Surcharge Reference Guide, at ups.com/rates2007. The complete 2007 UPS Rate and Service Guide will be available for download on the site beginning January 1, 2007.
Conversion from Oversize to Dimensional Weight Billing
Oversize charges for larger packages shipped via UPS Ground services will be replaced with a simpler rate calculation based on dimensional weight. Dimensional weight will only apply to UPS Ground packages measuring three cubic feet (5,184 cubic inches) or larger. Packages measuring less than three cubic feet will continue to be billed based on actual weight. As a result of this change, dimensional weight charges will gradually increase as the package size increases, eliminating significant steps from one Oversize tier to the next.
If the actual weight is greater than 70 pounds, an Additional Handling Charge of $8.00 will also apply. To offset this cost, we have lowered most UPS Ground rates for packages weighing more than 70 pounds. For more information, please visit ups.com/dimweight2007.
No One Offers More Time-Definite Delivery Options to and from the U.S.
UPS will offer unprecedented flexibility and expanded geographic coverage for your UPS International shipments. Choose from three guaranteed, time-definite deliveries:
UPS Worldwide Express PlusSM: UPS now guarantees delivery to more of Asia by 9:00 a.m. from the U.S. Service is guaranteed by 8:30 a.m. or 9:00 a.m. to 30 countries, including 11 new destinations in Asia.
UPS Worldwide ExpressSM: Guaranteed by 10:30 a.m. or 12:00 p.m. to select areas in 45 countries. We’ve added 12 new destinations in Asia, expanded coverage in western Europe and started service to the U.S. from 12 African countries.
UPS Worldwide SaverSM: Express service with delivery guaranteed by the end of the day. This more economical end of day service is available to over 215 countries and territories, including all 45 countries that have a morning delivery commitment.
For more information, please visit ups.com/express.
Thank you for the business you entrust to UPS.


* The net impact of these changes on your shipping costs will vary according to your shipping characteristics and
the terms of your agreement with UPS.
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trademarks of United Parcel Service of America, Inc. All rights reserved.
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Answer
We're in a fixed price market. Which means our products come prepriced. I guess we just lose more profit margins and pay those high salaries and pensions...
Anyways, I use USM for 90% of our shipping out. Incoming, our dist. uses UPS.

Answer
I give folks a choice of shipping. It's rare for anyone to pick UPS. There is just too much difference in price to USPS.
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