If you're shipping parcels and relying on your discounts to keep your prices down - this short but powerful information should be remembered for the future.
FedEx and UPS are relying on 1 simple trick that keeps 95% of businesses paying more than they need to.
If you understand it well you don't have to be one of them.
WHAT IS IT?
The simple (and genius) tactic of the carriers is:-
to increase their prices every single year either 5 or 6%. And for Express services even more!
(and it's not because of inflation: inflation has only been approx 1-2% annually.)
This tiny fact makes their prices double nearly every decade!!
This allows the carriers to keep giving discounts which seem impressive but prices still gradually (but consistently) go up.
So what can you do?
Most companies don't have the time to pursue more discounts every year or even if they do they feel like they're "beggars" cos they just got SO MUCH from the carrier recently.
So they back off and before they know it their prices are higher than before.
You need to make a vital perspective change.
You have to realize that every year there is another 5% to be received from the carriers and go get it.
You have to bargain on your transport prices, on your surcharges on your dimensional divisors, on everything.
Or else you'll keep overpaying.
And last of all, speak to experts to see what is negotiable and what isn't and what the carriers have been giving out recently.