If you’ve been with your shipping company, where it’s FedEx or UPS, for a while, chances are you’re not getting the best rates. But you can change that if you’re willing to engage and price quote their competitor, even if you’re not sure you’d be willing to switch!

Think about how you or other consumers interact with cable companies, internet providers, insurance companies, and cell phone providers, even when they’d prefer not to change providers. They’re open about “window shopping” other companies and speaking about the comparative prices, deals and extra services competitors are willing to offer for their business. 

Those industries, like many others, spend a lot on marketing to get your business, sometimes with short-term, strings-attached , and at the end of the promo period, rates increase and you’re paying more than most of your peers. Then, unless you speak up, your business is treated as a given. At least, until you make that phone call letting your service provider know that you’re considering a competitor’s offer.

The truth is, by and large, FedEx and UPS aren’t much different, except that their industry is consolidated into a duopoly that allows them to take their customers for granted. UPS and FedEx prevent having to fully compete by counting on the fears of their customers, such as: “If I try to negotiate, they can decide not to pick-up my packages.” 

Take a moment to reflect. Where does your company stand in the eyes of your carrier and do you feel valued?

Some of the signs your business is being taken for granted include:

  • You see your carrier rep once a year. Or worse, you’ve never met him or her.
  • You’re not sure who to call at the carrier when you have a question or need assistance.
  • The carrier is generally unresponsive or slow to respond, particularly when you contract is up for review.
  • You receive excuses and stall tactics: your rep is on vacation, the manager is out, the pricing team is still reviewing, et cetera.

A Willingness to Listen is Advantageous

Gathering competitive pricing when making a purchasing decision is standard buyer practice, think of your home- and car-buying experiences, electronics purchases, or even how you choose where to buy groceries. Similarly, collecting competing proposals from provides you a more complete, realistic picture of where you stand pricing-wise and with each company.

The company Best Home Furnishings, for example, felt its FedEx agreement came up short in offering what they really needed, but because they engaged UPS in the process, the company was able to leverage the competitive situation to improve its FedEx proposal! The result: Best Home Furnishings did choose to remain with FedEx, but they’re projected to save $500,000, or 15%, on their shipping expenses.

Even better, engaging the competition puts your current carrier on notice, a move that instantly earns you more leverage to negotiate competitive rates. Even an action as small as sending a dozen packages a week with another carrier provides you leverage. The barrier to switching on short notice is lowered, and it keeps both carriers working to earn your business. 

Analyzing your shipping habits and refunds due, independently or with a company like Refund Logistics, makes you better prepared to broach the conversation of cost savings with your shipping provider. More often than not, being given notice of dissatisfaction, or seeking opportunities elsewhere, will kick-start your parcel carrier’s motivation to make amends and find avenues to keep your business and save you money! 

Interested in understanding your shipping habits and getting the refunds you’re due to leverage your position with your service provider? Contact Refund Logistics to start exploring where you can cut costs and start receiving the money you’re owed.