Learn how to save money on shipping costs with OnTrac by negotiating better rates through multi-year contracts.
Negotiation Tips

How to Negotiate Better Shipping Rates with OnTrac Using Multi-Year Contracts

Published:
July 1, 2024
|
Last Edited:
July 9, 2024
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Read time:
9 minutes
Anthony Robison
CEO & Founder
Anthony Robinson
Founder & CEO @ ShipScience

If you're running a business that relies on shipping, you know that shipping rates can eat into your profits. In today's competitive market, it's essential to find ways to cut costs and optimize your business operations. One way to do this is by negotiating better shipping rates, and OnTrac is a great place to start. In this article, we'll guide you through the process of negotiating better shipping rates with OnTrac using multi-year contracts.

Why Negotiating Shipping Rates With OnTrac is Important for Your Business

When you're shipping products, the cost of shipping can be a significant portion of your overall costs. Especially when you're regularly shipping items nationwide, those costs can add up fast. Consequently, negotiating shipping rates with carriers is an essential part of your business strategy. By negotiating better rates, you can save money, improve your bottom line, and be more competitive in the market.

OnTrac is a reliable and cost-effective carrier that offers a range of shipping services to businesses of all sizes. By negotiating shipping rates with OnTrac, you can take advantage of their competitive pricing and save even more on your shipping costs. Additionally, OnTrac offers fast and reliable delivery times, which can help you improve your customer satisfaction and loyalty. By partnering with OnTrac and negotiating shipping rates, you can streamline your shipping process, reduce costs, and improve your overall business operations.

Understanding Multi-Year Contracts and Their Benefits for Shipping

A multi-year contract is a negotiated agreement between you and OnTrac, wherein you commit to a minimum volume of shipments over a set period. In exchange, OnTrac provides you with attractive pricing discounts, often resulting in significant cost savings for your business. With a multi-year contract, you can lock in these favourable rates for an extended period, which can help you plan and budget your shipping costs better.

Another benefit of multi-year contracts is that they provide stability and predictability for your business. By committing to a set volume of shipments over a period of time, you can better forecast your shipping needs and ensure that you have the necessary resources in place to meet those needs. This can help you avoid unexpected shipping costs and delays, which can negatively impact your business operations.

Additionally, multi-year contracts can help you build a stronger relationship with your shipping provider. By committing to a long-term partnership, you can work closely with OnTrac to identify areas for improvement and optimize your shipping processes. This can lead to better service and faster delivery times, which can ultimately improve your customer satisfaction and loyalty.

The Advantages of Working with OnTrac for Shipping Services

OnTrac offers several benefits that make them a great choice for shipping services. They have over 25 years of experience providing fast, reliable, and cost-effective shipping services, specifically designed for businesses of all sizes. They have an extensive network of service centers, including Same-Day and Next-Day service options. OnTrac's customer service is also highly rated, with knowledgeable representatives who can answer your questions and help you find the right service for your business.

In addition to their exceptional shipping services, OnTrac also offers a variety of tools and resources to help businesses streamline their shipping processes. Their online portal allows customers to easily track packages, manage shipments, and access real-time delivery information. OnTrac also offers customized shipping solutions, tailored to meet the unique needs of each business. With OnTrac, businesses can save time and money on their shipping operations, while ensuring their packages are delivered quickly and reliably.

What to Expect When Negotiating Shipping Rates with OnTrac

The first step to negotiating better shipping rates with OnTrac is to identify your business's unique shipping needs. Once you have this information, you can contact OnTrac to discuss rates and pricing. Be prepared to provide detailed information about your shipping volume, frequency, and locations. OnTrac's representatives will use this information to create a customized proposal that meets your business requirements.

It's important to note that negotiating shipping rates with OnTrac is not a one-time event. As your business grows and your shipping needs change, it's important to revisit your rates and pricing with OnTrac to ensure that you are still receiving the best possible rates. OnTrac's representatives are always available to discuss any changes to your shipping needs and adjust your rates accordingly.

Strategies for Successfully Negotiating Better Shipping Rates with OnTrac

When it comes to negotiating better shipping rates with OnTrac, several strategies can help. Firstly, it's essential to be transparent about your business's needs and requirements. Be willing to share information about your shipping volume, frequency, and destinations. This way, OnTrac can create a tailored proposal that meets your specific needs. Additionally, consider committing to a higher volume of shipments to qualify for better discounts. Ask about any other available discount programs that could help you save money on shipping.

Another strategy to consider is to negotiate a longer-term contract with OnTrac. By committing to a longer-term contract, you may be able to secure better rates and discounts. This can also provide stability and predictability for your shipping costs, allowing you to better plan and budget for your business.

Finally, it's important to regularly review and analyze your shipping data to identify areas where you can optimize and save money. Look for patterns in your shipping volume and destinations, and consider consolidating shipments or adjusting delivery times to reduce costs. By staying informed and proactive, you can continue to negotiate better rates with OnTrac and improve your overall shipping operations.

The Role of Volume and Frequency in Shipping Rate Negotiations

In general, the higher your shipping volume and frequency, the better the rates you can negotiate with carriers like OnTrac. When you're negotiating shipping rates, you might consider committing to a higher volume of shipments over a more extended period. This way, you can often earn larger discounts on your shipping rates based on OnTrac's pricing structure. As you grow your business and increase your volume of shipments, revisit your contract with OnTrac to ensure you continue to receive the best rates possible.

Another factor to consider when negotiating shipping rates is the type of products you're shipping. Some carriers may offer better rates for certain types of products, such as lightweight items or those that can be easily stacked on pallets. It's essential to research carriers' pricing structures and compare them to your shipping needs to find the best fit for your business.

Additionally, it's crucial to maintain a good relationship with your carrier. By communicating regularly and being transparent about your shipping needs, you can build trust and potentially negotiate better rates in the future. It's also essential to be aware of any changes in the carrier's pricing or policies that may affect your shipping rates and adjust your strategy accordingly.

How to Leverage Your Business's Shipping History to Secure Better Rates

Your shipping history can help you secure better rates when negotiating with OnTrac. If you have a good track record of shipping with OnTrac, be sure to mention this in negotiations. OnTrac sees value in long-term partnerships with their customers and may offer better rates to those who have a demonstrated history of consistent business. Be prepared to provide documentation, such as past invoices or shipping records, to demonstrate your track record with OnTrac.

In addition to providing documentation of your shipping history, it's also important to be aware of any upcoming changes in your shipping needs. If you anticipate an increase in volume or changes in shipping destinations, be sure to communicate this with OnTrac during negotiations. This can help them better understand your business needs and potentially offer more tailored and cost-effective solutions. Remember, open communication and transparency can go a long way in building a strong partnership with your shipping provider.

Tips for Preparing for a Shipping Rate Negotiation with OnTrac

Before a shipping rate negotiation with OnTrac, be sure to do your research. Take the time to understand your business's shipping needs and volume. When you contact OnTrac, be prepared to provide detailed information on your current shipping costs and your expected shipping volume moving forward. Consider any other factors, such as seasonal spikes or trends, that could impact your shipping rates and be prepared to share this information with the representative.

It's also important to have a clear understanding of OnTrac's pricing structure and any discounts or promotions that may be available. This can help you negotiate for the best possible rates and ensure that you are not overpaying for shipping services. Additionally, be prepared to negotiate on other aspects of the shipping agreement, such as delivery times and service guarantees. By being well-informed and prepared, you can increase your chances of securing a favorable shipping rate with OnTrac.

Common Pitfalls to Avoid During a Shipping Rate Negotiation with OnTrac

One common pitfall to avoid when negotiating shipping rates is failing to prepare adequately. Do your research beforehand so that you can have an informed conversation with the OnTrac representative. Avoid committing to more volume than you can handle or that exceeds your current shipping needs. OnTrac's pricing structure is designed for customers who can consistently meet a minimum volume. Also, make sure you factor in any potential hidden fees, such as fuel surcharges or delivery area surcharges, when evaluating any quotes OnTrac provides.

Maximizing the Benefits of Multi-Year Contracts with OnTrac for Your Business

Once you have a multi-year contract in place, there are several ways you can maximize its benefits. Firstly, ensure you're meeting your agreed-upon volume so that you can continue to receive the best rates possible. Consider collaborating with OnTrac to optimize your shipping operations, such as routing and delivery times, to further maximize cost savings. Additionally, review your contract regularly and renegotiate as needed, continually looking for ways to optimize your shipping costs and improve your bottom line.

Evaluating the Success of Your Negotiated Shipping Rates with OnTrac Over Time

After you negotiate a new shipping rate with OnTrac, it's essential to evaluate its success over time. Track your shipping costs over several months, and compare them to your prior costs to understand the impact of your negotiated rate. Consider reviewing and renegotiating your contract every year or so to ensure you continue to receive the best rates possible based on your business's evolving needs.

Conclusion

By following the tips and strategies we've discussed here, you can effectively negotiate better shipping rates with OnTrac using multi-year contracts. By committing to a minimum volume of shipments, you can lock in better rates for an extended period, saving you money and improving your bottom line. Remember, it's essential to do your research, be transparent about your business's needs, and collaborate with OnTrac to optimize your shipping operations continually.

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