Shipping Costs
A small business that only ships a nominal amount of products or only ships small packages may rely heavily on UPS, FedEx or DHL. Another option that many small businesses take advantage of is the small package service provided by the US Post Office.
The convenience offered by UPS, FedEx, DHL and the US Post Office cannot be matched by most other motor carriers. This is because all four services have a very well organized network of vehicles and a system that can respond and deliver within hours, they have risen above the pack and account for the large majority of all small package delivery services in the United States.
It is also quite useful for small businesses to set up post boxes where they can have a business address for receiving mail that may be more convenient than receiving mail from the physical location where the business actually operates. This is particularly applicable to small home businesses which may be operated from an office in your house. Having an alternate business address looks more professional and also separates your business mail from your personal mail.
Other businesses might ship thousands of pounds of freight several times per week. Most of these types of companies are either manufacturers, distributors or warehouse operators. There are many common carriers that specialize in less than truckload (LTL) or truckload (TL) freight service and the prices and areas they service can vary widely.
Consider the following example. If your company makes a 10% profit on each dollar of sales and your company can cut the cost to ship by $10,000, the revenue saved is the same as making an additional $100,000 in sales. It is very wise to control the price you pay to ship.
If your company does not have its own transportation department or anyone versed in the best ways to ship products, it might be in the best interest of the company to hire an outside logistics firm or agent that can arrange the best possible ways to handle all of your shipping needs.
Whether your small business uses post boxes, small package companies or LTL and TL carriers, a good shipping strategy will pay off in better bottom line profits.
