Shipping Cost - How can we get it cheaper than the consumer?

[Manufacturer]

I know that UPS and FedEx have deals with high volume national accounts and shipping cost get drastically lower than the consumer shipping prices. But how can a start-up small business dip into the savings? It's all about volume, but how can I get volume with high shipping rates to begin with? Are there any consolidated shipping centers locally that get better shipping rates than the USPS? How do you all get better shipping rates? Thanks!

[Fulcrum]

Often that's a cost you will have to bear until you can get your volumes up. However, most companies charge shipping on top of the sale price of the item.

[Harold Mansfield]

For domestic shipping USPS has great rates. I buy from Amazon which I know has a ton of volume and warehouses everywhere, but typically my small 2 day packages come by USPS. I don't know how they do it, but they seem to use a combination of carriers that end with the USPS on a lot of stuff.

[millerguide]

I once had a small business that shipped things regularly. I had to pay retail shipping costs. I think until your volume is up, you may have to just do the same, but be sure to charge the customer for shipping.

[turboguy]

Once your volume gets up there play one against the other. If you ship by UPS then FedEx will sharpen their pencil. If you then switch to FedEx then UPS will give you a bigger discount to win your business back. Sometimes you just need to seem like you are thinking of changing. I have noticed this with a lot of our suppliers. For example our credit card processing, our rates will slowly drift up and if I call them and say I am thinking of changing they do a "review" and lower the prices. Even with my cable company. When I call and tell them I am thinking of switching to Satellite they cut my prices.