Negotiating a FedEx Discount


April 03, 2011


Shipping costs are going up, especially with the global crises in Japan and the Middle East affecting oil prices. But you can negotiate lower rates with FedEx.

When negotiating for discount FedEx rates, work with the manager at the local distribution center and request a lower rate. Ask him or her to analyze your account. Based on your weekly shipping volume, you may get a FedEx discount. For example, your rate may be lowered if you rise to a specific threshold in total FedEx shipping costs.

In addition, you may be entitled to more FedEx discounts if you pass a higher threshold and meet other requirements. Merchant accounts are similarly negotiated. You can gain an even better negotiating position for a FedEx discount if you go to the FedEx website for seasonal FedEx discounts and special offers. FedEx may offer bigger discounts during high-volume traffic periods. The company will have reduced costs per delivery, which they should pass on to you.

Another tactic is to get price quotes from big competitors like UPS. Ask if they'll meet or beat their competitor’s quote. Tell them you're looking for the best discount UPS rates or discount FedEx rates available. Be ready to show the carrier account manager evidence of your shipping volume. Ask him or her to give you a lowered rate for being a long-time, steady customer. Your aim here is to secure FedEx discounts in return for your ongoing business. Shipping companies don't want to lose a valued customer to a competitor.

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