Ways to Reduce Your Shipping Costs

person loading boxes for shippingShipping costs often eat into the bottom lines of many companies, especially if they can’t pass on the additional fees to the customer. However, you can lower these costs without compromising the customer experience.

Due to the constant increase in gas prices, some businesses end up spending a fortune in transportation costs. Sometimes, these costs can be as high as 50 percent. To avoid bleeding money, you have to pass on these costs to the consumers.

Doing so increases the price of goods, sometimes putting them just beyond the affordability of the market. A slowdown in sales can hurt your bottom line. Working with European road haulage companies can help lower your transportation costs.

Stick to one carrier

As with all businesses, you will get better prices when a logistics company handles all your shipping needs. High volumes entitle you to better charges, which can lower your transportations costs. You only need to find the carriers with the best rates.

In addition to looking at the charges, you also need to be sure that the carrier has a large fleet to cover all your delivery routes. Picking the company covering most routes spares you from the shipping headaches. Offering a carrier large work volume elevates your status with them, which gives you sufficient leverage to negotiate the best possible rates.

It transports your firm into a critical business account, which means that the carrier might go to great lengths to retain your business. However, you need to be sure that they can avoid loss and delayed deliveries as these can lead to dropping customer satisfaction.

woman receiving shipment

Consolidate all your shipments

Unless you’re dealing with perishable goods, you can opt to gets all your deliveries in one day. In most cases, the pay rate with haulage companies is negotiated on distance, weight, and other variables. Consolidating shipments increases the size of the load, which lets you reap the rewards of larger purchases. Your ability to make changes depends on the type of cargo you handle and the size of your business. It’s imperative to crunch the numbers and consider other relevant factors before making a decision.

Rethink your packaging strategy

Typically, you want to ensure that all your shipments get to their destinations in one piece. However, the need to protect your goods shouldn’t cause you to incur a fortune in shipping fees. Refining your packaging strategy enables you to pack more products in a pallet.

You can switch to cube boxes as you can stack them well to take a few spots on the pallet. Your preferred carrier can help you with the process of building more efficient pallets to increase product safety and efficiency.

In the end, you should remember that lowering your shipping costs can give you an edge on the market. Due to the reducing overhead costs, you can price your products affordably while ensuring a healthy bottom line. Working with a reliable hauler can help you meet these goals quickly. If you feel unsure, you can seek the advice of an expert.