Many things demand consideration when you own a business. One of the most important and often overlooked areas is shipping costs. Happily, there are many ways to cut shipping costs that not everyone takes advantage of. Here are twelve:
1. Packing basics
Sometimes saving money on shipping costs is as simple as being more proficient with packing procedures. This can be done through improved communication between the client and the freight broker in developing a packing plan.
2. Size really matters
Instead of using the larger freight carrier size of 40′, you can opt for a 20′ container to save both space and money. This can only be done if the cargo is packed expertly. With cases of bulk shipments, the larger carrier may suit your needs better.
3. Correctly balancing shipments
There are two main types of packages that can be shipped. To ensure all packaging will arrive unharmed and in the most cost-effective manner, you can divide the cargo with a healthy mix of weight and measurements.
4. Think bulk
Always think of shipping bulk when trying to save on costs. This method not only saves money by amount but can also save on fuel. What can be done in several trips might actually be accomplished in one or two large shipments.
5. Utilize cargo crates
This might seem like an additional cost at first. But in the long run, your company will save loads of money by avoiding damage to precious cargo. Not only are crates quite effective, but they also offer a uniform stacking platform to make packing decisions easier.
6. Use a third-party insurance carrier
Freight insurance can drive up your shipping costs up considerably. It’s smart to invest in a shipping insurance on your own company time.
7. Shop around
Always be on the lookout for a better quality and cheaper freight service. Even if you have been with a company for many years, you should keep your options open and invite quotes from other brokers.
8. Say no to additional services
Additional costs such as delivery services can add up really quickly. Instead of using the “inside” services that freight companies offer, consider an outside service provider for deliveries to upstairs offices and other areas that require extra manpower.
9. Reduce residential deliveries
It is much simpler to deliver from business to business and avoid residential deliveries. These sideline jobs will rack up your costs in no time. Make sure your customers are aware of your policies in this area and this will save more money than you expect.
10. Keep your records straight
Get acquainted with just how many cargo containers you are able to receive in a given time. Talk to your broker about how the shipping company can effectively utilize this plan and cut costs.
11. Never forget to negotiate
An experienced business owner knows how to negotiate price. Make yourself familiar with these areas and this can also cut costs dramatically.
12. Avoid hidden fuel charges
Pay close attention when fuel or oil prices drop. This is the time to take advantage of lower prices and no surcharges. The price of fuel can be utterly ridiculous, and this in itself is one reason why fuel plays an important factor.
It really is that simple. There are so many ways to avoid extra shipping costs. If you stay aware of all your options, you can save more than you ever dreamed!