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Common Tricks Used Parcel Carriers In Contract Negotiations




As a business holder, whether a warehouse or a big store owner, you have three important things to focus on which are; offering quality products and services, maintaining a constant flow of customers, and watching your bottom line grow like thick grasses. To maintain a constant flow of customers, you want to make sure that your deliveries are done in time and the goods delivered to get to your customers in good shape. Right? But while you do this, you want to keep costs as low as possible. That is why you need to know these tricks your parcel carriers play on you during contract negotiation. Meanwhile, if you’re looking to purchase new pallets for your new fare, check out this local wholesale pallet company. Without much ado, let’s get started.


Offering The Discounts You Don’t Need

The larger percentage of shippers deliberately play this trick. They know the kind of shipping most opted for by the majority of their customers and decide to place the highest discounts on the less chosen shipping method. Here’s what I mean. If you’re shipping the kinds of goods that require palletized shipping but your shipper places discounts only on non-palletized shipping, know that you’re being played on.


Guaranteed Service Refund Waivers

Also called GSR, guaranteed service refund waivers are the money paid back to you when anything goes wrong. Things that can go wrong include late deliveries, erroneous residential charges, misshaped goods, and so on. Most shippers will never include GSR waivers in their contracts until the dying minutes when something goes wrong will you find out that you’ve just signed an unfair deal. So, it is reasonable to take your time and carefully read that contract before scribing your signature on it. Make this a rule; no GSR waivers, no contract signing. You’re welcome.


Poorly Structured ED Tiers

Earned discount tiers are beneficial to you, yes we all know that. It can provide a lot of incentives that will help you to cut down on your shipping costs. But don’t get too excited. As long as all shipping contracts are negotiable at any point in time, it makes sense to do the calculation yourself to find out your gross spend, your discount tiers, and the overall contract. You can negotiate not only the discount at any time but also the method of calculating those discounts can also be negotiated at any time.


Being More Knowledgable In Your Shipping Data

Previously I talked about earned discount tiers and highlighted that you can always make a negotiation at any point in time. But what’s the point of having the chances of being able to negotiate when you don’t have enough data to negotiate by? If your carrier is more knowledgable about your previous shipping history than you, you’ll be at their mercy. But suppose you hire a professional audit firm to help in the provision of your previous shipping reporting, you can know your average shipping cost and make it your bargain point when signing a contract with a carrier.

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