Monday, March 2, 2009

The Truth About Shipping Expenses

By Tom Sanderrs

Shipping expenses can be a real headache and many companies give you a good deal on their products only to ramp up the shipping charges. It's an old trick that fools nobody but many providers still do it. The best way to avoid this sort of trap is to carefully investigate the sort of prices other organizations are charging.

Different types of shipping: the cheapest form of shipping will typically be ground shipping and you will be able to save money using this method. Some companies will charge a little more for something like FED EX to achieve overnight delivery. It can be very surprising to see how much shipping and handling differs from place to place. Some organizations will offer their clients a variety of options like 7 day, 3 day and overnight deliveries. And, of course, the price varies. If you're in a hurry for the items you'll no doubt choose the overnight option.

Keeping track: The best way to assess these different shipping costs is to use an Excel spread sheet. Note down all the shipping and handling prices on this sheet, together with the name of the company. In this way you can compare your findings from each company and find the most cost effective deal. If you are a regular shopper for lighting fixtures for your business and your home the money you spend on shipping and handling can add up.

What about caps on fees: see if the provider caps their shipping and handling fees at a certain level. A cap on shipping and handling fees is good for peace of mind and some organizations may even offer a flat rate for all shipping.

Is bigger really better: established organizations usually give you a good deal. They tend to buy in bulk, achieving discount levels that smaller operators can never get. Shipping and handling is often considered an easy way to pass on that saving and discounts are offered to orders that exceed certain levels. Bigger companies will also keep your previous orders on a database so they know to value you repeat business. There's nothing worse than talking to a different person each time and getting the feeling your previous patronage has been forgotten.

To many people, shipping costs are insignificant. However, if you were to add up all of the shipping costs your business pays each year you might get a nasty shock. Being efficient is all about trying to get the best price on everything, and this often includes shipping. - 15338

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