Is There Any Room For Negotiating Shipping Rates?

The prices that are quoted to you by a courier company can often seem to be quite expensive

. That is why many people wonder if they've got any flexibility when it comes to the prices that are quoted them by a courier company. 3Pl providers and shipping companies usually provide their prices estimates based on a formula. So there are two ways to adjust the price of your shipment. The first is to better understand the formula, and take steps that might reduce your quote. The second is to see if they have any room for active negotiations on the price.

If you're looking to find a company that you can ship with that might allow you for some flexibility in their shipping rates, then you may want to opt for smaller scaled courier companies. When you ship with a company the size of FedEx, the rates are often set in stone, or managed by people extremely high up in the organization. However, when you're shipping with a local courier company, the manager or owner in charge is often right in the office, allowing you in many cases to at least speak with someone that may have the power to negotiate.

There are several things that you can to improve your chance of a better shipping rate. First, you will almost in every case have to be an account holder with the courier company. It is extremely rare that they would ever both to give an improve rate to someone that was only shipping with their company on a one time basis.

In order to have a successful negotiation for a better rate with a shipping company, one thing that you very much need, is leverage. Leverage means that you have to have something to offer the courier company in return for them offering you a better rate. Typically, the best way to do this is with volume shipping.

The only people who tend to have success negotiating a better shipping rate are companies that ship on a very frequent basis with a courier company. At that point, you are representing a significant client, and one that they don't want to lose. That is why courier companies often give their best customers a general discount on all their shipping. Negotiating a onetime discount on a shipment is unusual, but getting a preferred company rate is possible if you ship enough to warrant it.

by: Paul McDuffy

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