• General

    Posted on June 14th, 2006

    Written by Chris Sivori

    Tags

    Even though I’m religiously devoted to his linkblog, every once in a while, Andy Baio makes a casual remark that rubs me the wrong way. For example:

    “Coke and FedEx seem desperate to kill grassroots love of their
    product because it “doesn’t fit with the brand personality”


    My rant in response:

    In the Fedex example, I believe you reference the case of the man who
    furnished his apartment with Fedex boxes. The Internet community was
    outraged at the legal response from Fedex. While I believe the
    response was inept, I don’t think most people appreciate the Fedex
    side of the equation.

    I was a package handler and courier with Fedex in Austin, Texas during
    college from 1996-2001. During this time when I worked in the
    warehouse, it was my responsibility to fill the supply orders from our
    customers. This included requests (from anyone with a Fedex account
    number) for boxes, padded paks, labels, various envelopes, etc. Every
    week we shipped out tens of thousands of dollars in supplies direct to
    our customers. It was one of our single largest expenses as a station
    behind diesel fuel. This does not included any packaging stocked in
    the trucks, or in the dropboxes, or in the Kinko’s centers.

    If I recall, each actual Fedex box cost us $1.50 -2.00, and this was
    back around 1998-1999, so I’m sure the cost is much higher now. The
    envelopes and flexible paks are somewhat cheaper. That guy’s Fedex bed
    is probably worth a few hundred dollars.

    The last thing Fedex wants as a company is to create any notion that
    these supplies are for anything other than shipping Fedex packages or
    for anyone other than Fedex customers. We had a hard enough time
    keeping paying customers stocked up. What happens when people start
    emptying dropboxes and drop centers just to build furniture they’ll
    toss within a few days? What happens when someone gets to a dropbox to
    ship a package and every box has been removed? When I later became a
    courier, you would often arrive at a dropbox to find an angry customer
    who had been waiting because someone else stripped the dropbox so
    they’d have extra supplies at home. We stocked the dropboxes every day
    and a few times a week it would be picked clean. And, the person who
    had to wait is going to make sure they stock up the next time and it
    becomes a vicious cycle. In the end, most of the extras get thrown
    away.

    Make no mistake. This issue directly impacts the customer and the
    bottom line. Fedex loses business and takes on tremendous additional
    cost when there are problems like this. To encourage anything else
    would be bad business. Doing so would mean stocking extra supplies
    just for me-toos who want to build their own Fedex furniture. The
    question I would ask is why not just use discarded cardboard to make
    furniture?

    There is always some loss when you give supplies away for free. You
    will always have those people who use the Fedex boxes to send USPS or
    UPS. The ones who cross out the logos or turn the boxes inside out.
    However, it is another thing for a business to celebrate a costly
    behavior as part of some guerrilla marketing campaign, which is what
    you seem to be implying.

    Share and Enjoy:

    • del.icio.us
    • Facebook
    • Google Bookmarks
    • StumbleUpon
    • Twitter
    This entry was posted on Wednesday, June 14th, 2006 at 1:47 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
  • 0 Comments

    Take a look at some of the responses we've had to this article.

  • Post a Comment

    Let us know what you thought.

  • Name:

    Email (required):

    Website:

    Message: