One of the most important parts of running a business is shipping your products. You must find reliable shipping that gets to the destination on time and in a good condition. This sounds simple, but it can get more and more complicated as your business grows. Learn how to keep shipping costs down by learning how the costs are determined and how to save money on your commercial shipping.
Factors that Determine Commercial Shipping Costs
There are a number of ways that companies determine how much they will charge you for your shipment. Some companies will have their own stipulations, but things that they can potentially use to determine costs are:
Tips to Reduce Commercial Shipping Costs
1. Slower shipping
Fast shipping costs more money than shipping that takes more time. If you have regular shipments, you can predict your orders and ship them out a couple of days earlier to still get them there at the same time. Just be prepared for if a client cancels a shipment.
2. Consolidate
Shipments between 150 lbs. and 20,000 lbs are considered "less than a truckload". When you have less than a truckload, it could be in your best interest to consolidate your shipment with another shipment with your freight company. In this way, you can essentially split the cost with whoever ordered the other shipment. Depending on the size of your shipment, you can save between 10 - 60%.
3. Customize box sizes
In some situations, you will be charged by the size of your boxes. Ready-made boxes might be larger than you actually need, making it cost more than necessary. If you order boxes specifically made to fit your products, you won't be charged for the excess size of larger boxes.
4. Combine services
When you need to send several things to the same general location, it could be a great idea to combine services. Find a service than can offer both freight and standard parcel shipping.
5. Find the shipping that suits your needs
Some companies will charge you by the weight of your shipment. Other companies will charge you by the volume of your shipment. Determine which one suits your needs and remember that you don't have to go with the same company for every shipment. Rather, go with the company that will give you the best deal on the specific shipment in question. Contact a company, like Pac Pride Distribution, Inc., to get started.
Share21 January 2018
When I started going through our books to see where we were losing money, I was astonished to see how much we were losing on shipping. We were spending a boatload on shipping, and I knew that it needed to stop. I met with our shipping department, and they talked about some of the issues they had been facing, including trying to find small enough boxes and using packing tape that just didn't work well. We started trying to figure out how to lower these costs, and we figured things out pretty quickly. This blog is all about eliminating waste and speeding up your shipping procedures.
