The cost of shipping has been found to be one of the largest expenses for small businesses. However, as a resourceful entrepreneur, you should know of ways that will help to reduce the shipping costs significantly. One is by consulting and hiring the services of a Canadian Trucking Company. Remember that one of the goals of a business is to reduce the expenses while trying to get more profits. To achieve this, the article enumerates some essential tips that can help small business to manage their shipping costs.
1. Negotiate with Multiple Carriers
As protocol, all shipping companies have their pricing schedules based on the volume of the items that are being shipped. Therefore, the more the volume of the products, the less the rate of shipping will be. What most small businesses do not realize is that they have the negotiating power. Before settling on a shipping company, make a comparison between different shipping companies and consider one that is relatively cheap but also ensure that they deliver on time. They should also have favorable terms and conditions. After this, try to persuade the carriers to reduce their costs.
2. Use Packaging Provided by Your Carrier
Using your packaging could make you incur additional dimensional fees if your package exceeds the size regulations that are set by the shipping companies. You can, therefore, avoid these extra costs by using the packaging services that are provided by your carrier. This can also save you up to 15 percent of the amount you were to pay.
3. Invest in Prepaid Shipping
This is an efficient method of cutting down shipping costs. This is because many shipping companies offer a special discount rate to their clients who invest in their prepaid shipping services. When this happens, you buy some shipping labels then affix them to the various packages as required instead of paying for each package when you are sending them out. However, this may work best for companies that know that they will be shipping the same weight packages repeatedly because this will help them to determine the costs quickly.
4. Consider Hybrid Services
Hybrid services may have restrictions on the weight, size, and volume of the packages but they are a cheaper option as compared to other delivery options. They can cost half as much as other delivery options, and this will significantly help to cut down on the shipping costs. The services will pick your packages and ship them to the post office that is closest to the destination. The mailman will do the final delivery. While this method is a cheap option, it is relatively slow.
5. Ask About Discounts
Find out if your carrier services offer membership discounts. Even if the discount rate may seem insignificant, you are making savings in the long run.