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UPS/FED EX Discounts


gopherGG

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Hello Everyone

 

I have a small business and we ship about a 100 packages (approx 25 lbs : 20 x 22 x 25) a month through GROUND but our shipping cost by is killing us :(

 

We are not getting enough discounts and yet I see our competition getting ridiculous discounts through Fedex and UPS. They spend 1/4th on shipping the same item than us.

 

Can you please suggest how we can get better discounts on ground shipments through these companies?

 

Thank you

 

J

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  • 10 months later...

Good luck with that (I know the topic is old)

 

I have been trying to get a good deal out of Fedex and UPs for over a year now.

 

First it was almost impossible to get them to respond to any emails I sent, it wasn't until I sent them one telling them to stick it, that they actually replied.

 

We spend well over $10,000.00 a year shipping smal packages around the US with USPS (Mainly Medium and Large Flat Rate boxes), I asked them if I could get some kind of discounted shipping rate based on this amount spent.

 

They sent me a "New customer" rate table, which was still way more expensive than USPS.

 

While I realize that in the scheme of things 10 grand isn't the earth, I would have thought that it was worthy of maybe a little more 'customer service' in the way of communications and pricing.

 

This all happened 6 months ago, I check their table with the USPS on almost every single shippng transaction we do, and can count the number of times they have been a better option on one hand.

 

UPS and Fedex suck!

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  • 2 weeks later...

Even when you get your negotiated rates, what really kills you are the surcharges. The rates might look decent on the program they use, however when you get that bill 1 1/2 month later, you will see all the additional surcharges that range from $2 - $11 and more extra per package. Oversize package surcharges, residential surcharges, address corrections surcharges, fuel surcharges....the list goes on.

 

ScorpionT is right, there are many other shipping options that might fit you better and what it comes down to is the more the learn the better off you will be. What I find out is that you do not want to have all your eggs in one basket. Each shipping carrier has a specialty and it is up to you to find where your products fit within those shipping companies so you do not overspend on shipping.

 

Another tip I can get you is sometimes going direct with UPS and FedEx might not be the way to go for you. There are 3rd party logistic companies out there in which you can go through that will give you better rates. They take volume from many companies they have signed up with them which allows them to get a very large discount in which is passed onto you. So they basically bill you but you are still using the same services. The are reselling UPS and FedEx services.

 

Another tip I can share is insurance on packaging. Using a shipping carrier insurance is crazy. They will overcharge you by several dollars. I would suggest contacting a 3rd party packaging insurance company like U-Pic.

 

Also look into USPS for your smaller type packages. They have a 1st class option great for anything below 1 pound. They have flat rate boxes which are good for anything that is heavy up to 70lbs that can fit in the box. I just put a write up on this area of the forum called USPS shipping 101. It might be worth wild checking out.

 

...and I just noticed what is killing you are your box size. Looks like they might be hitting you on the overall girth of the package which starts out at around 80lbs you are being billed for, I think they call it oversize package surcharge? Is there a way you can repackage the item where maybe it will not be put in that oversize box category? Sometimes going with a smaller box size might bump you down from that category.

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