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.
[call-to-action]Lojistic is here to help you secure better UPS and FedEx Rates. Learn more about how the negotiation process works![/call-to-action]
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.
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.