Chicken or Egg Problem: Low rates for volume but can't get volume without low rates.

UpstateNYUPSer(Ret)

Well-Known Member
Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat

Thanks for the advice. We'll be selling personal care products.

IMO a website and fulfillment center which will drop ship your orders in the most cost-effective manner (not necessarily UPS) is the way to go.
 

'Lord Brown's bidding'

Well-Known Member
Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat

Isn't design of logistic mgmt systems and "supply chain solutions" part of UPS' portfolio of products? Maybe they can help design a system suited specifically for the customer's needs, making use of our services overall cheaper?
 

BrownSuit

Well-Known Member
Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat

Your best course of action is to let your local driver know that you need to speak with somebody in Business Development or call 800-PICK-UPS and let them know you need to get in touch with your sales person regarding the rates. The later will ensure a quicker response. While rates could be discussed based on your potential assuming the egg hatches, keep in mind that should you not give the amount of volume that is promised, you could come out paying published rates. Be open, up front, and honest with the sales person and they'll work to do the best thing for you. I would also have comparisons for what you are being charged for the FedEx and USPS handy.
 

brownmonster

Man of Great Wisdom
Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat

Your best course of action is to let your local driver know that you need to speak with somebody in Business Development or call 800-PICK-UPS and let them know you need to get in touch with your sales person regarding the rates. The later will ensure a quicker response. While rates could be discussed based on your potential assuming the egg hatches, keep in mind that should you not give the amount of volume that is promised, you could come out paying published rates. Be open, up front, and honest with the sales person and they'll work to do the best thing for you. I would also have comparisons for what you are being charged for the FedEx and USPS handy.

After few weeks remind the driver that no one contacted you.
 

UpstateNYUPSer(Ret)

Well-Known Member
Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat

Isn't design of logistic mgmt systems and "supply chain solutions" part of UPS' portfolio of products? Maybe they can help design a system suited specifically for the customer's needs, making use of our services overall cheaper?

Yes but these services are normally reserved for the Amazons of the shipping world, not a Mom and Pop start-up.
 

worldwide

Well-Known Member
Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat

Thanks for the advice. We'll be selling personal care products.

What, specifically, are the personal care products? I ask so I can get a better idea of the weight of the packages.

Will they be sent B2B or B2C?

If the shipments will be light weight (under 2 lbs) and going to residential destinations, you will have to decide if you truly want to pay more for UPS Ground vs. USPS Priority Mail. In almost all cases, UPS Ground will cost more than USPS Priority Mail. If you want guaranteed delivery, full-visibility tracking and an automatic $100 in declared value coverage, UPS Ground is the way to go. If you want the cheapest service that has no guarantees and limited tracking, than USPS Priority Mail is the way to go. Fedex Home Delivery is going to price very close to UPS Ground residential service.

Your only other UPS related option may be Mail Innovations if you have any shipments that are 1-lb or under. UPS Mail Innovations | Services | Qualified Mail - Flats, Under 1 lb. parcel, bounded printed, and media mail

I'd still recommend going to the following link and either enrolling your current UPS account number in this promotional program or setting up a new account and getting an instant discount. It's the fastest way to get things started and get a discount on all UPS services in the shortest amount of time.
https://www.ups.com/mrd/promodiscou...B_SmallBusinessWebDiscountJan2013_PX_U1_en_us

Down the road a fulfillment center may work for you but just remember that they are taking a part of the UPS discount that would normally be yours if you dealt directly with UPS not to mention whatever they charge you for their services. Why not get started on your own and then when it's clear your product is a success, then you go to the next level.

Best of luck on your new business!
 

newtothis

Well-Known Member
info needed

If you want to send me particulars and your contact info I will pass it off to my sales department Monday. I'm in NY but no matter where you are they will make the necessary call to your reps
 
Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat

I had a similar situation and I had to absorb the higher rates until I had the volume to get the lower rates. Thats's the answer...build your company. I used USPS when I had to but never used FEDEX. My rates are low enough now that I can take a little profit from the shipping costs.
Good Luck
 

'Lord Brown's bidding'

Well-Known Member
Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat

I had a similar situation and I had to absorb the higher rates until I had the volume to get the lower rates. Thats's the answer...build your company. I used USPS when I had to but never used FEDEX. My rates are low enough now that I can take a little profit from the shipping costs.
Good Luck
You know, many work for UPS PT strictly for the benefits. UPS now offers their employees 10% off shipping costs. If such a discount was available to you or the OP, would that offset the difference in choosing UPS vs the Post Office? Might taking on a PT gig at UPS be worth it? Just bouncing an idea off the wall; I know it may sound crazy.....
 
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