Are you noticing the cost of shipping products rising every year? If your business is growing and delivers its products in bulk via multiple freight services, the charges you pay on freight would be increasing for various reasons. Read on to discover how you can get amazing deals through volume discounts.
Are you getting what you are owed?
What you may not realise is there are ways you can cut down on shipping expenses by taking advantage of volume discounts. For instance, many people do not know that the higher the volumes of freight sent, the cheaper the charges will be.
Why waste thousands of dollars per year on shipping expenses when your business could save more by taking advantage of volume discounts as demand for your product increases. If you are not using a freight auditor, you may not have the insight or knowledge for getting all the volume discounts possible. Here are a few insights on what you could do to reduce your shipping costs by enlisting a freight rate auditing company.
The first method you can use in securing amazing deals is to compare freight forwarders. There are many freight companies out there you can call. But if you enlist a freight rate auditor, they will find the best companies that offer discounts on your particular consignment volumes and they help you to do this on a long term and ongoing basis. Freight auditors deliver their customers the best shipping rates and discounts and they only charge what you make in savings! So there’s even no outlay to get started.
Consolidate your consignments
Another way to get amazing discounts on your freight costs is to consolidate the consignments themselves. This means packing them together rather than using different freight forwarders. A shipping company can offer a volume discount if say, you pack four items worth $2000 together, rather than sending them separately or via different freight companies.
In order to get great volume discounts, packing plays an important role in the process. A significant amount can be discounted by reducing items down to their minimum thickness and volume. If your company has a central office where all the goods are collected and sorted out according to destination, it is easy to consolidate goods ready for shipping in bulk. Using this method your business can save thousands of dollars in freight costs each year.
Avoid brokers – Invest in a Freight Rate Auditor
You might be thinking of using a broker to help you save on freight. But beware! Brokers are often closely affiliated with freight companies and often get kickbacks from the freight companies. Freight brokers are supposed to help you renegotiate your shipment price to get for you the best deals for in-bound or out-bound freight shipments. They then receive the invoice from the freight company and forward it to you with their percentage applied. Using a freight rate auditor like freightcostsolutions.com.au will assure you get the best deal because we are completely independent and take out the middleman. You are in control of the process the whole time.
Use fewer freight carriers
Using multiple carriers means you may miss out on potential volume discounts. It is best to use fewer carriers for transporting your goods so you can receive better pricing. If you use one carrier or just a few carriers, you will have more bargaining power with the carriers who offer discounts as your volumes increase. Freight rate auditors like Freight Cost Solutions™ are able to recommend the best providers for your needs and we will ensure you are getting all the discounts possible. If you don’t use a freight auditing company you may not get the volume discounts, even if it they would otherwise be available to you.
Shipping discounts also differ depending on the destination of your shipment. The further away the destination, the less discounts you’ll enjoy. You can choose to ship to closer destinations to reap further discounts.
Join trade organisations
You can get further discounts on shipping charges by joining a trade organisation that offers delivery discounts. Trade associations may offer discounts to members associated with larger freight companies such as FedEx or UPS. A freight rate auditor will know about these associations and the companies affiliated with them to maximise discounts.
Finally, volume discount brackets are standard practice across companies within the transport industry. As you add more freight to the equation, the kilogram rates should decrease proportionally. However, many businesses are not aware of this fact and may be missing out on these discounts.
Gaining a good working knowledge of volume discounts will really help your business save money. But it is much more financially effective to get a freight rate auditor like Freight Cost Solutions™ to do the legwork. They can help you save up to 60 per cent on freight rate charges each year, which is usually not a viable option if businesses choose to do the audits themselves.
Are you taking advantage of volume discounts? Are you looking at enlisting a reputable freight rate auditor? If so – call the expert team at Freight Cost Solutions™ today.