Smart Questions: How to Save on Shipping Costs
Whether you use the big names or a small regional package carrier, your fee statement for shipping is probably as complex as your cell phone bill. Many carriers have dozens of separate fees. Here are six questions to ask when you’re shopping for shipping.
From: Inc. Magazine| By: Nitasha Tiku
- Have you added any surcharges?
Carriers have always charged fees for things like fuel, but the number of add-on charges has risen in the past five years. Now they might charge you a fee for going through international security and another for an undeliverable package. The good news? The fees are all negotiable, says Mike Erickson, president of AFMS, a company that helps businesses negotiate shipping contracts.- Can I have my account history?
If you’ve been working with the same carrier for a while, ask to see historical reports that break down the fees you’ve paid. Then use that information to negotiate. If 97 percent of your packages go to New York City, your carrier might cut the fees it charges for the 3 percent you ship to rural Montana.
For the entire article go to Inc.com
Corra has a friend who for many years has been a top operations manager. He saves his company, an apparel manufacturer, a lot of money. Just what he saves on buttons and zippers alone by negotiating the best price is pretty notable.
He saves more money by negotiating shipping rates, and he has honed his sourcing skills to get the best quality for a buck.
If you are a business, you need guys like this. They are not easy to come by. And once you do find a prospect, it is important to make sure he really is who he says he is, meaning can he do what he says he can do. Besides the criminal background check, you should run employment verification and professional reference verifications. Corra strongly recommends a credit report, which will serve as an indicator as to how prone someone is to steal or take kickbacks that would cost you inventory and up your overhead.
Check them out before you hire.
