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2 minutes read

The shipping secret that saves Fortune 500 companies millions

If you’ve been following parcel news recently, you know that both UPS and FedEx recently announced their rate increases, with UPS matching the earlier announced FedEx’s general rate increase for 2024 of 5.9%. While this increase is less than the one for 2023, it’s larger than nearly every increase over the last 30 years. Companies can either pass on the cost to their customers or do their best to absorb it. Years ago however, Fortune 500 companies discovered a tactic that’s saved them millions over the years. Now, small- and medium-sized businesses are finding savings, too. In this blog post, we’ll tell you about a parcel rate negotiation technique that can decrease your yearly parcel spend by 20-30%.

Can anyone negotiate at any time?

Many businesses sign a parcel contract, assuming they must accept rate increases and surcharges imposed throughout the agreement.

Not true.

Renegotiating FedEx and UPS agreements at any point during the contract term is both possible and advisable. However, going into a negotiation unprepared ensures you’ll leave money on the table. That’s why some of the biggest companies in the USA rely on third-party experts to assess and renegotiate their contracts.

Consider renegotiating your parcel contract if you:

  • have experienced a change in shipping volume
  • are interested in bundling services
  • haven’t renegotiated in the past 12 months
  • have not secured discounts or waivers for surcharges
  • haven’t engaged an expert to review your contract

Even without a Fortune 500 budget, parcel rate negotiation services can save you money and time.

Can I renegotiate by myself?

If you needed legal help, you wouldn’t study for the bar exam, would you? You’d hire a lawyer. And at the beginning of each year, you likely employ a CPA to file your taxes instead of muddling through the process alone. So why are you negotiating your parcel contracts without expert help?

Engage with shipping experts to:

  • Leverage industry knowledge
  • Incorporate services and benefits into the contract
  • Maintain positive relationships with your carrier
  • Analyze current data
  • Understand complicated pricing structures

It’s entirely possible to negotiate on your own, but expert help yields excellent results.

Why use ShipRx for parcel contract negotiations?

After engaging ShipRx for parcel contract negotiations, the CFO of an electronics distributor said, “We negotiated our contract by ourselves before finding ShipRx. When we had them take a look, they found an additional $100K in savings.” These results aren’t atypical. Our parcel contract negotiation service frequently lowers our clients’ shipping expenditures by 20%-30%.

There’s no risk to get started— we’ll begin by conducting a free savings analysis to set a benchmark and quantify your potential savings. Then, we’ll develop a strategy targeted toward your industry, shipping volume, and service levels. The specialists at ShipRx will communicate expected improvements to FedEx and/or UPS, evaluate proposals, and execute and implement new agreements.

Small- and medium-sized businesses often avoid seeking professional negotiation assistance due to financial concerns. ShipRx works on a percentage basis— so you can be sure that this savings technique will benefit your bottom line.

Get in touch today for your free savings analysis and find out how much you can save when you entrust your parcel rate negotiations to the shipping experts.

Brittany ShipRx Contributor
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