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(So Cal Metro)
(So Cal Metro)

Last week, in advance of its quarterly earnings report, UPS admitted that it over-spent on holiday shipping in 2014 and that it wouldn’t make that mistake again. Today, with those quarterly earnings announced, the company announced how it’s going to make back some of its money — by tacking on surcharges for residential deliveries.

The surcharges aren’t something that you’ll see immediately applied everywhere, but will be rolled out as UPS renegotiates its shipping contracts with its largest customers, reports Reuters.

“These pricing strategies will be designed to ensure we are properly compensated for the value we provide,” explained UPS CEO David Abney.

So why put a surcharge on residential deliveries?