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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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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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