20 Minutes to Lower Shipping Rates from UPS, FedEx, and DHL

imageWhether your home or small business uses UPS, FedEx, or DHL, you can save you hundreds, if not thousands, of dollars each year by simply picking up the phone to renegotiate your shipping rates.

Last year, my small business made about 1,300 shipments (15% international, 85% domestic) through UPS, for a total UPS bill of about $20,000. This past January, I decided to call UPS to renegotiate my shipping rates.

Did it work? A resounding YES. A week later, after reviewing my account, UPS faxed me a quotation that provided the following discounts:

  • 20% across-the-board discount on all international shipping, both outbound and inbound so as to match FedEx and DHL. Since international shipping for my standard 4.5 pound (2 kg) packages usually costs $80-$100 or so, that meant a savings of about $18-20 per shipment.
  • 20% discount on all Next Day and 2-Day Shipping.
  • 5-10% discount on UPS 3-Day and UPS Ground.

To date, my small business is en route to saving about $4,000 this year. That’s $4,000 more to invest into my business, source new products, put money into Google Ads, provide discounts to attract new customers, and whatnot. Not bad for a 20 minute phone call.

With negotiating rates UPS came another benefit. I’m now able to consolidate my international shipping operations to one courier, and thus save the hassle of comparing international rates of UPS, FedEx, and DHL, a popular request since overseas rates vary considerably.

In short, just pick up the phone and call UPS, FedEx, DHL, or whoever is your main courier. It’s 20 minutes that can save you money, gain new customers, and ultimately build your business.

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