Businesses should start getting concerned about the ridiculous increase in courier rates this year. Although the world doesn't hear much about the strategies of famous shippers like FedEx and UPS to increase profits, their rate increases are as obvious as it gets. Maybe that's their way of gaining profits. Are they losing money which led to the high increases? That's another story.
This 2013, brace yourself, shipping base rates are increasing at an average of 4.9 percent. Consumers and businesses sending packages weighing less than 30 pounds are the most likely victims here. The base rate for these packages will increase by 7 to 8 percent this year compared to year 2012.
This increase will be a shocker for everyone. But what's more shocking is the increase in subcharges and accessorial fees. The increase in base rate is more understandable but the subcharges are hitting the roof. With UPS alone, the residential delivery subcharge increased by 10 percent already. Wrong address surcharges increased by 9.1 percent. The price hike is ludicrous but there's not much we can all do about it.
Businesses will be greatly affected by this increase especially those that rely on couriers to send products to consumers. Consumers may hesitate ordering from online retailers because of the expensive shipping rates. There is one thing you can do though, try negotiating. Negotiating for the base price will not do any good but you can try negotiating the subcharges and accessorial fees. Any cut from the fees will be helpful in managing your shipping expenses.
Negotiation can be an option but before you do it, do some reading on what fees you can negotiate for. There are charges that companies really cannot lower down. Know what you can and cannot negotiate so you'll not waste any time with the courier. You should always try to negotiate because the price hike is not temporary. It may even increase more in the next years. If you want to manage your budget, you can also try to adjust your shipping methods and strategies.
Big and small businesses are both victims of this increase. And with the dispirited economy, things may not change any time soon. Price hikes will happen left and right and this will surely affect your business. Protect yourself, learn more and try negotiating on shipping fees. Saving a few pennies or dollars on every package will be extremely helpful.
This 2013, brace yourself, shipping base rates are increasing at an average of 4.9 percent. Consumers and businesses sending packages weighing less than 30 pounds are the most likely victims here. The base rate for these packages will increase by 7 to 8 percent this year compared to year 2012.
This increase will be a shocker for everyone. But what's more shocking is the increase in subcharges and accessorial fees. The increase in base rate is more understandable but the subcharges are hitting the roof. With UPS alone, the residential delivery subcharge increased by 10 percent already. Wrong address surcharges increased by 9.1 percent. The price hike is ludicrous but there's not much we can all do about it.
Businesses will be greatly affected by this increase especially those that rely on couriers to send products to consumers. Consumers may hesitate ordering from online retailers because of the expensive shipping rates. There is one thing you can do though, try negotiating. Negotiating for the base price will not do any good but you can try negotiating the subcharges and accessorial fees. Any cut from the fees will be helpful in managing your shipping expenses.
Negotiation can be an option but before you do it, do some reading on what fees you can negotiate for. There are charges that companies really cannot lower down. Know what you can and cannot negotiate so you'll not waste any time with the courier. You should always try to negotiate because the price hike is not temporary. It may even increase more in the next years. If you want to manage your budget, you can also try to adjust your shipping methods and strategies.
Big and small businesses are both victims of this increase. And with the dispirited economy, things may not change any time soon. Price hikes will happen left and right and this will surely affect your business. Protect yourself, learn more and try negotiating on shipping fees. Saving a few pennies or dollars on every package will be extremely helpful.
About the Author:
Joseph B. Kappernick works with companies to help them reduce their logistics and shipping costs. Please visit NPI to learn more about shipping vendor cost reduction
Aucun commentaire:
Enregistrer un commentaire