Can I Negotiate On My Shipping Rate?

It can sometimes seem like you're always going to be forced to pay whatever the shipping company demands of you

. After all, you have to have your goods shipped one way or the other, so there isn't very much you can do about, right? The truth is that with some 3pl providers, you might actually have more room for negotiation that you might realize.

The truth is that when it comes to negotiating a shipping rate, the biggest mistake that most people make is that they don't even ask in the first place. While some companies may be willing to negotiate on a rate if you bring it up or if you're weighting your options in other shipping companies, none of them are going to just offer you lower rates on their own. After all, if you're willing to pay your current rate, it will just keep adding up to more profit in their pockets.

There are a couple of things that might give you more leverage when it comes to possibly negotiating a shipping rate. If you ship on a regular schedule, you might be able to negotiate. Also, if you regularly ship especially large shipments, that will also give you a better chance of being able to get a rate adjustment.

This is simply a leverage matter. When you ship large shipments, or ship on a regular basis, you represent a more significant piece of the profits being earned by that courier company. Rather than lose your business altogether, they would, in most cases, prefer to offer you a slightly preferred rate.

When you're trying to negotiate a shipping rate, preferred is a term that you should keep in mind. You won't have very much luck trying to talk a courier company down on just a single shipment, as it isn't usually worth their time to talk about it, as they have no proof that they will gain anything for giving you that discount. However, if you talk about a preferred rate, they have something to gain.

If they, for example, give you a 5% discount on all your shipping, they will see that as an investment. That is because you are then likely to return to them for more shipping needs in the future and, over the long term, could represent more profits over the course of all your future shipments than have been lost by discounting the rate by that amount.

by: Paul McDuffy

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