Get the Best UPS and FedEx Rates and Discounts
When it comes to shipping, there is no easy way to get great shipping rates. But if you put in some time or money (better if both) there is a way to get the best UPS and FedEx rates and discounts.
We will talk about a few things you can do to get good shipping discounts from FedEx or UPS.
Technique #1: Negotiate
Negotiating may seem like a daunting task. Most people hate it. They don’t want to be seen as needy or even worse as a beggar. However if you want to get good FedEx or UPS rates and discounts you have to negotiate.
There is a very good book called “Getting to Yes: Negotiating Agreement Without Giving In” that I would recommend to anyone who deals with negotiations in one form or another. Be it buying or selling a car, or negotiating your UPS or FedEx agreement.
Ask for the “operator” once you have a live person tell them that you would like to be contacted by a local sales rep in your area. They will take down your information and a sales rep will be in contact with you in a few days.
2nd Step is to learn everything you can about your company’s shipping. The most popular sizes and weights of packages that you ship. How much packages you ship per week/month/year. How many money you spend on shipping per week/month/year. Where do the majority of your packages get shipped to, is it California, New York, Florida? What type of discounts are you currently getting? (if any)
3rd Step: Once a local rep reaches out to you, via phone usually. Schedule an appointment, most FedEx reps are not local so you would be speaking to them. UPS however usually sends a rep over.
Once you are talking to your account rep, tell them everything about your shipping habits. What type of packages weights, etc.
Important Tip: Tell them you need the best possible shipping rates, and that you are talking to both UPS and FedEx, and will do business with the company that provides you with the best rates possible.
4th Step: Wait. It takes anywhere from 1-6 weeks for a rep to get back to you with prices from their pricing department. Once you have prices from both FedEx and UPS review the agreements and see which carrier provided you the best rates. Then use that carrier to leverage and get the other carrier to beat the discounts. Do this until either one of the carriers no longer can beat the others prices.
5th Step: Sign agreement and Save!
Technique #2: Join an Association
Another effective way to get discounts is to join an association with which you are affiliated with. There is a membership fee with most associations but the investment can bring you substantial amounts of savings.
There are hundreds is not thousands of associates out there.
Lets say you resell outdoor goods. Can easily join the OutDoor Industry Association and take advantage of the discounts that they have already pre-negotiated for their members. Membership rangers anywhere from $250-$10,000/year depending on your sales volume.