Find Out How To Get The Best Negotiated Rates Possible This Year | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) Find Out How To Get The Best Negotiated Rates Possible This Year ================================================================ ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)July 18, 2019 Negotiated Rates Affect Your Business ------------------------------------- Negotiated rates with UPS and FedEx could help your business and I am here to explain why that is. What I'm answering is the question of, what is a negotiated rate with UPS and FedEx? Inconsistent [pricing](https://www.lojistic.com/blog/freight-audit-pricing-and-benefits) from FedEx and UPS is something many companies are dealing with. This is because of the negotiation skills or the experience each company has with UPS and FedEx. They're receiving different rates and different incentives than companies right down the street. Companies who could be shipping the same amount of stuff as them. Understanding How It Works -------------------------- So what's important is understanding how pricing with UPS and FedEx works. Also, it's important to know how negotiated rates happen. First, what you start with is base pricing that UPS and FedEx provide for anyone who can ship a package. That pricing is consistent among all companies. The way that UPS and FedEx provide more [incentives or savings](https://www.lojistic.com/blog/ups-and-fedex-discounts-revenue-based-incentives) to larger shippers is custom rates. What you're doing is taking the base rate that you receive from UPS and FedEx and get a negotiated rate. Most companies in this instance receive the same base rates. The only thing that differs is the incentives they receive. It also includes incentives and negotiated rates on things like [surcharges](https://www.lojistic.com/blog/lowering-ups-shipping-rates). It can range from things like residential surcharges or for very large shippers fuel. So, the idea that you're paying the same as a company of the same size, is a little bit of a fallacy. This is because it comes down to the individual relationship that you have with the carrier. Also, your ability to negotiate improved incentives helps too. How To Negotiate The Rate ------------------------- Now, how do you negotiate an improved discount that you know is competitive for a shipper of your size? The key is using a company that can provide analytic support. They can show you how much a shipper of your size with similarities to you is paying. This way you can understand your rates among the marketplace. Having that information allows you to go to the table with an advantage with UPS and FedEx. You know your worth to the carrier. The more information you have allows you to make some competition between FedEx and UPS. Then use that leverage to get the best-negotiated rate for your shipments. With a negotiated rate you can ship feeling comfortable that your [costs are fair](https://fairtradecertified.org). Your costs are competitive against other industries that you are interacting with. ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. 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