UPS may have ruined Christmas for many of its customers by failing to deliver Christmas presents on time, but analysts expect the company to make adjustments in its operations to avoid a recurrence. While some of the changes will involve better planning and operational adjustments, the company may also decide to charge more for shipping last minute Christmas orders. That’s the view of Benjamin Hartford, an analyst with Baird Equity Research, as reported by the Atlanta Journal Constitution:
Hartford also expects UPS to… look at changing the way it prices shipping during peak periods in a way that could cost procrastinating shoppers more.
The goal, Hartford said, would be to smooth out orders in the days and weeks leading up to Christmas….
The way to do that is to charge more for late orders during peak periods like the holidays, to incentivize customers to place their orders earlier.