How Intelligent Businessmen Negotiate For Better Shipping Rates

How Intelligent Businessmen Negotiate For Better Shipping Rates

One of the highest expenses for many businesses is the cost of shipping their orders after purchase. Problems exist in a variety of ways, mostly based on the product size and weight. Businesses that sell large heavy products usually have limited options. Shipping rates are rarely reduced because weight is the primary factor when carrying charges are calculated. Other businesses that deal in intermediate or smaller-sized products have a greater variety of options that can even include using the U.S. Postal Service. The dynamic of the sales operation and product offering matters, and the potential for negotiating a better shipping rate is available with most carriers because volume is a serious consideration.

How Intelligent Businessmen Negotiate For Better Shipping Rates

Contact Regional Sales Offices

Local shipping personnel normally do not have the power to negotiate rates of any type, but the regional sales director may be able to offer a reduced rate. Primary considerations will be the weight of the item. Many businesses sell products in a wide range of sizes, so there may be a series of rate adjustments based on the product line. The regional management staffs commonly make these decisions if the company does not offer it automatically online. It is a good idea to at least ask.

Simplify Packaging

Weight and volume packaging problems can often be avoided by utilizing customized shipping containers. This can actually be done with practically any product, as customization is the key. Customized supplies, like those available from Associated Paper & Supply, can help streamline and simplify the shipping process. Almost all shipping companies offer this sort of rate adjustment because they want your business, especially if the volume is significant. Using custom supplies can also provide effective advertising when company logos can be applied to cartons. Custom packing supplies also allow a method of protecting the product during shipping when cushioning products can be included.

Set Achievable Shipment Goals

Small businesses who are wanting a better shipping rate are commonly not approved immediately, and many times smaller operators are offered probationary short-term rate adjustment based on estimated volume by the end of the term. The shipping company may evaluate the actual estimated shipping weight and volume and provide an acceptable offer. This too can be affected by using customized supplies and containers. Setting a feasible shipment goal and then taking steps to make it happen can be a good method of growing business, but failure to meet those goals may end the term of the negotiated rate.

Never be discouraged from negotiating a shipping rate adjustment when your business is doing a solid and consistent sales volume. Consistency can be very important in helping shippers assess the actual number of packages that will be moved, which can give the sales office a reason to approve the rate adjustment. They want your business, and you want the business to grow and prosper. Reduced shipping rates can help make the difference.