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6 Ingenious Ways Businesses Can Save Money In Shipping

6 Ingenious Ways Businesses Can Save Money In Shipping
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Every organization, established or starting up, is keen on keeping cost as low as possible to make maximum profits. Shipping cost can take up a huge percentage of cost if not properly strategized, which could eat into profits or prevent a start-up from breaking even.

Recent developments in technology have opened new doors for businesses to outsource functions to established shipping organizations. This is especially beneficial to organizations with large shipments. What about small organizations that do not have the volumes to economically employ those services?

Shipping cost can drain your business’ profits and extend your break-even point if you do not keep a keen eye on it. These tips could help keep it checked. Check out these six ingenious ways on how businesses can save money in shipping costs.

1. Package Appropriately

You want enough space for your merchandise without paying too much for unused space. Experts recommend that you leave about two inches of clearance to give your merchandise enough space for safety. If the items to be shipped are fragile, be sure to have enough bubble wrap to keep them from breaking.

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The essence of having just the right packaging is to avoid paying too much for using larger-than-necessary boxes. Seal it appropriately with heavy-duty tape so that it does not come off during transit and force the transporter to seal it afresh. That, of course, would increase your shipping cost.

In as much as the merchandise in transit determines the type of box used, regular boxes do just fine for most shipments. Avoid using heavy packaging that only attracts high parcel costs for regular merchandise.

2. Establish Relationships

If you are a small start-up, the market is still new to you or you have not gained enough mileage to play in the big league then your best bet are the companies in your league. Look into the start-ups that offer these services and grow with each other. If they provide services as good as the established transport brands, you could score some good rates.

Depending on the number of products you ship, you could negotiate for better rates. Ask them to give you discounts based on targets that both of you set, or generally, agree to a flat rate of the total cost. Check if they provide terminal to terminal shipping and if it can help cut the costs as well. If you stick with them long enough, you could help them become a bigger brand, and they could keep you, their loyal customer at a special rate.

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You could also agree to market them to your networks, and they could give you discounts for every referral.

3. Use Volume as Leverage

As your business grows and volume increases, make the numbers known to the more established providers. You could drop a number to an executive from the company that you want to work with and let them bait.

Let them know what your current provider is offering and see if they would come down to your level. If the volumes are decent and the future looks bright (your information is on the internet), most of these companies will let you play with the big boys. Convince them that getting your business would be to their best interest.

“A lot of small businesses think they aren’t large enough to negotiate rates with the shipping services, but they can. Open an account, get a rep and talk about options,” advises Rhonda Abrams, a columnist and business owner in Palo Alto, California.

Established shipping companies such as FedEx are quite expensive, but well known in the industry. With them, you are sure that your merchandise would be safe in transit and that time consumed would reduce drastically. That is why they are worth the premium cost. If you find a way of bringing them onboard at a favorable price, take it. Volumes and consistency are your greatest assets.

4. Recycle and Keep Records

If you have lots of incoming goods as well as outgoing merchandise, you could save the boxes from your incomings. The idea here is to ensure that you unpack carefully to prevent extensive tears that would render the boxes useless.

When you unpack, collect all the perfectly undone boxes, and use them for your outgoing merchandise. If the box is still in excellent condition, none will be the wiser. This only applies to regular packaging. Of course, for premium products, you would have to use brand new boxes.

As for your records, monitor what you send out. Measure the package before it leaves the warehouse and compare the data with your service provider’s. This will inform you on how much you are spending per day even before your service provider sends you the invoice.

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5. Declare War on Expensive Packaging Material

You cannot afford to have one supplier and to stick with them for the rest of your company’s life. You have to shop around to establish whether you would get better rates elsewhere. Companies such as USPS will give you flat rate boxes free for using their services (or rather, they incorporate the cost in their rates) and so you can take advantage of that.

You can also buy packaging material in bulk to benefit from quantity discounts. While doing this, you are paying attention to your storage capacity. You do not want to spend too much on storage for material that you will not use in the short run. Keep an eye on the market for cheaper yet quality supplies.

6. Demand Refunds For Late Deliveries

When you are only getting started, you cannot afford to be late in your deliveries. Mistakes like those could cost you the same customer base that you are working hard to build. Most shipping companies, FedEx and UPS included, have a money back guarantee. If they fail to keep the agreed time, they promise to issue a full refund.

As a start-up, you may find it tedious and costly to track all the untimely deliveries and to seek a refund as stipulated in the contract. That is how Refund Tiger helps. They audit your transactions and follow the refund process on your behalf from service providers for a percentage of the total amount.

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Conclusion

It is prudent to keep your own records that you countercheck with those of the courier service. Never stop scouting for cheaper means of transport because every penny counts. Establish rapport with shipping companies, possibly the smaller start-ups with a stellar reputation. Endeavor to keep your cost as low as possible, but the services as professional as you can. If you stay with a selected group of service providers long enough, you will reap benefits in the name of discounts.

Featured photo credit: Pixabay via pixabay.com

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Nabin Paudyal

Co-Founder, Siplikan Media Group

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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