Shipping large volumes of packages can significantly increase your expenses. Fortunately, UPS offers volume discounts to help businesses and individuals save money on shipping costs. These discounts can be a game-changer for businesses that ship frequently, as they allow you to negotiate lower rates based on the number of shipments.
Getting a volume discount with UPS typically involves negotiating based on how much you ship, how often, and what services you use. UPS wants your business long-term, so they offer incentives if you ship a lot. This article will guide you through securing volume discounts with UPS, how to qualify, and tips for maximizing your savings. Let’s learn how to get a volume discount with UPS.
Understanding UPS Volume Discounts: What Are They?
UPS volume discounts are reduced shipping rates offered to businesses or individuals who ship many packages regularly. These discounts are negotiated based on the volume of shipments, meaning the more you ship, the lower your per-package shipping costs. Volume discounts can apply to domestic and international shipping services and can be customized based on your specific shipping needs.
By securing these discounts, businesses can significantly reduce their shipping expenses, making it a valuable tool for increasing profit margins, especially for eCommerce or fulfillment-based operations.
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Why UPS Offers Volume Discounts
UPS offers volume discounts as part of its strategy to attract and retain large-volume shippers. By providing discounted rates, UPS encourages customers to ship more frequently and establish long-term relationships. These partnerships benefit UPS and the customer, ensuring a steady stream of business for UPS while offering cost savings to the shipper.
In a competitive shipping market, volume discounts allow UPS to differentiate itself from other carriers like FedEx or USPS. The savings offered through these discounts help UPS maintain customer loyalty while catering to the unique needs of businesses that rely heavily on shipping services.
Eligibility Criteria for UPS Volume Discounts
Your business or personal shipping needs must meet specific criteria to qualify for a UPS volume discount. These criteria include:
- High Shipping Volume: Generally, volume discounts are available to businesses or individuals that ship many packages each month. While the exact number of shipments required varies, regular shipping is key to qualifying.
- Shipping Frequency: Volume discounts may also be influenced by how frequently you ship with UPS. Businesses that ship daily or multiple times a week are more likely to qualify for discounts.
- Contractual Agreement: In some cases, businesses may need to contract with UPS to secure volume discounts. This agreement outlines the discounted rates and specific terms based on shipping volume.
- Account Status: To be eligible for volume discounts, businesses must maintain a UPS shipping account in good standing. Late payments or account issues could jeopardize eligibility for discounted rates.
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How to Negotiate Volume Discounts with UPS
Negotiating volume discounts with UPS can be straightforward if you’re prepared. Follow these steps to negotiate a better deal:
- Review Your Shipping Data: Gather data on your shipping history, including the number of packages, types of shipments, and destinations. This data will help you demonstrate your shipping volume to UPS representatives.
- Reach Out to a UPS Sales Representative: Contact UPS and request to speak with a sales representative. They can assess your shipping needs and discuss potential discount opportunities.
- Highlight Your Business Needs: During negotiations, clearly explain your shipping volume, frequency, and future projections. The more shipping volume you can commit to, the better your chances of securing a significant discount.
- Negotiate Contract Terms: Review the contract carefully if UPS offers you a volume discount. Ensure that the discount rates align with your shipping needs, and consider negotiating for additional services like free package pickups or waived fees.
- Consider Multiple Shipping Options: Sometimes, UPS will offer different types of discounts for various services (ground, express, international). Choose the service level that best fits your business, and negotiate accordingly.
Steps to Apply for a UPS Volume Discount
Once you’ve negotiated a volume discount with UPS, you’ll need to complete a few steps to activate it:
Step 1
Ensure you have a UPS shipping account set up. If you don’t already have one, you can create an account on the UPS website.
Step 2
If your negotiated discount requires a contract, UPS will provide you with the necessary documents. Please read through them and sign the agreement to finalize your discount.
Step 3
Once your volume discount is applied to your account, update your shipping preferences. This includes selecting the correct service levels and confirming that the discounted rates are reflected in your invoices.
Step 4
Start shipping through your UPS account after applying the discount. Monitor your invoices to ensure the discount is correctly applied to each shipment.
Tips for Maximizing Your Savings with UPS Volume Discounts
Here are a few strategies to help you maximize the benefits of your UPS volume discount:
- Optimize Your Shipping Schedule: Consolidate shipments where possible to maximize volume in fewer trips. This can help you reach higher shipping thresholds for more significant discounts.
- Take Advantage of Additional UPS Services: UPS offers additional services like free package pickups, tracking, and insurance. Including these in your discount negotiations can increase your overall savings.
- Monitor Your Shipping Volume: Regularly review your shipping volume and compare it to the discount thresholds in your contract. If your volume increases significantly, renegotiate your rates to reflect the higher volume.
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Common Mistakes to Avoid When Seeking UPS Volume Discounts
Avoid these common pitfalls when negotiating or using UPS volume discounts:
- Not Negotiating for the Best Deal: Always negotiate the terms of your discount. Accepting the first offer may leave potential savings on the table.
- Missing Contract Details: Pay close attention to any terms or limitations in your contract. These could include minimum shipment volumes, service restrictions, or early termination fees.
- Failing to Revisit the Contract: As your business grows, revisit your contract to renegotiate discounts based on higher shipping volumes.
How to Stay Updated on the Latest UPS Volume Discounts
UPS frequently updates its pricing and discount structures. To stay informed:
- Subscribe to UPS Newsletters: UPS often emails updates on promotions and new discount programs.
- Regularly Contact Your UPS Representative: Maintain communication with your UPS representative to be aware of any new discount opportunities.
- Follow Industry Blogs: Shipping-focused blogs often report on changes to UPS’s discount programs and how to take advantage of them.
How Beem Can Help You Save on UPS Shipping Costs
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Conclusion
UPS volume discounts offer businesses and individuals significant opportunities to reduce shipping costs. You can maximize your savings by understanding the eligibility criteria, negotiating smartly, and staying informed about discount opportunities. Additionally, leveraging tools like Beem can further streamline your savings and ensure you get the best deal possible. Download the app here.
FAQs on How to Get a Volume Discount with UPS
How can I qualify for a UPS volume discount?
To qualify, you typically need to ship many packages regularly. A UPS sales representative can help you discuss your shipping needs to determine if you meet the eligibility requirements.
Are there any restrictions on UPS volume discounts?
UPS volume discounts may come with certain restrictions, such as minimum shipment volumes or contract agreements. Be sure to review all contract terms carefully.
Can I combine UPS volume discounts with other promotions?
UPS volume discounts cannot usually be combined with other promotions. However, asking your sales representative about any available offers is always a good idea.
