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Chicken or Egg Problem: Low rates for volume but can't get volume without low rates.
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<blockquote data-quote="beentheredonethat" data-source="post: 1145579" data-attributes="member: 4886"><p><strong>Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat</strong></p><p></p><p></p><p></p><p></p><p>Thanks for your wanting to do business with you, we do appreciate all of our customers. As a small startup, you may find that the fulfillment center (even including their markup) is cheaper then the discount you can get from UPS as you first startup. I would look into what the fulfillment center would charge you to utilize UPS on their rates. (The net rate from them). Shop around, also where are your customers located or for future customers where do you anticipate they will be located? You would do well to get from each fulfillment center you are looking at to get what their transit maps are for UPS and the others. They should all have that since UPS gives the fulfillment centers that information if they ask. Also, tax laws are uncertain (internet sales tax) however, for now there is none excluding the state you have a nexus in. So for West Coast fulfillment centers Nevada is really attractive. </p><p></p><p></p><p>As another poster indicated, shop around, get rates from competitors and utilize it to lower negotiated rates with UPS.</p></blockquote><p></p>
[QUOTE="beentheredonethat, post: 1145579, member: 4886"] [b]Re: Chicken or Egg Problem: Low rates for volume but can't get volume without low rat[/b] Thanks for your wanting to do business with you, we do appreciate all of our customers. As a small startup, you may find that the fulfillment center (even including their markup) is cheaper then the discount you can get from UPS as you first startup. I would look into what the fulfillment center would charge you to utilize UPS on their rates. (The net rate from them). Shop around, also where are your customers located or for future customers where do you anticipate they will be located? You would do well to get from each fulfillment center you are looking at to get what their transit maps are for UPS and the others. They should all have that since UPS gives the fulfillment centers that information if they ask. Also, tax laws are uncertain (internet sales tax) however, for now there is none excluding the state you have a nexus in. So for West Coast fulfillment centers Nevada is really attractive. As another poster indicated, shop around, get rates from competitors and utilize it to lower negotiated rates with UPS. [/QUOTE]
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Chicken or Egg Problem: Low rates for volume but can't get volume without low rates.
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