Carrier Shipping Explained

[ryanb4614]

I have been going back and forth with UPS trying to get better rates for shipping. I currently get a 9% flat rate discount on published carrier rates for Ground shipping (this was just by signing up online). They offered me a "Incentive" Agreement". I am very confused on how the rep explained it to me. From what I see if I am using the table/understanding correctly. If I have a slow week and I am $0.01- $49.99 tier and only ship out 5 lbs residential I would get a 6% discount. Is anyone else familiar with these? Do they came right off the shipping price or is the like a rebate I receive weekly? Don't think is really a good deal.

[vangogh]

I don't have an answer for you, but I wanted to see if I could make your thread active again so that someone who might know sees it.

I've always been confused by shipping prices. I don't ship anything for my business, but I've set up shipping on a few websites and it's never fun. It seems like there's a different rule for minor differences in conditions.

Does the agreement you have with them cost you anything? Are you thinking there are better deals? I'm guessing, but I would think you get a discount on the price. You'd get 6% until you ship more than than the $49.99 tier and then you'd get next tier of discount for the next thing you ship. Again just guessing.

Sorry I can't be more help, but hopefully someone with a better answer now sees this.

[Forward Freight]

Basically what they're saying is that your discount will reflect your volume of business. However- 9% should be considered a joke/insult. If you contact a 3PL company- such as myself- you can undoubtedly get better rates than what they are willing to offer your small business.

To illustrate- last year we spent ~30M on transportation. This has allowed us to leverage deep discounts with all the major trucking lines. Should you choose to use us- or any other 3PL- those discounts get passed along to you. Just a suggestion for lowering your transportation costs.