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6 Ingenious Ways Businesses Can Save Money In Shipping

6 Ingenious Ways Businesses Can Save Money In Shipping

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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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

Reference

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