How to Negotiate Better Shipping Rates with UDS Using Volume Discounts

May 8, 2023
Written by
Anthony Robinson
How to Negotiate Better Shipping Rates with UDS Using Volume Discounts

How to Negotiate Better Shipping Rates with UDS Using Volume Discounts

If you're a business owner who relies on shipping to get your products to customers, you understand how important it is to find a reliable shipping carrier that offers fair rates. One company that is becoming increasingly popular among businesses is United Delivery Service (UDS). In this article, we'll discuss how you can negotiate better shipping rates with UDS by taking advantage of volume discounts.

What is UDS and Why Should You Care?

United Delivery Service is a courier network that specializes in same-day and rush delivery services. With UDS, you don't have to worry about package size or weight restrictions. Their fleet of vehicles includes everything from small cars to large box trucks. One of the biggest advantages of working with UDS is their wide range of delivery options, including same-day, next-day, and weekend deliveries. This level of flexibility can be a game-changer for businesses that require timely deliveries.

In addition to their delivery services, UDS also offers warehousing and distribution solutions. This means that businesses can store their products in UDS's secure facilities and have them shipped out as needed. This can save businesses time and money by eliminating the need for their own storage space and staff.

Another benefit of working with UDS is their commitment to sustainability. They use eco-friendly vehicles and packaging materials and have implemented energy-efficient practices in their facilities. By choosing UDS as your courier and warehousing partner, you can feel good about reducing your carbon footprint and contributing to a more sustainable future.

The Importance of Negotiating Shipping Rates

For small businesses, every penny counts. That's why it's important to negotiate shipping rates with your carrier. Even a small discount can add up over time and help you save money on shipping expenses. Negotiating shipping rates can be especially important if you're dealing with high volume shipping requirements, as rates can add up quickly.

Another benefit of negotiating shipping rates is that it can help you improve your bottom line. By reducing your shipping costs, you can increase your profit margins and reinvest those savings back into your business. This can help you grow your business faster and stay competitive in your industry.

It's also important to note that negotiating shipping rates isn't just about getting the lowest price possible. You should also consider other factors such as delivery times, tracking capabilities, and customer service. By finding a carrier that meets all of your needs, you can ensure that your shipments arrive on time and in good condition, which can help you build a positive reputation with your customers.

How Volume Discounts Can Help You Save Money on Shipping

One of the best ways to secure better shipping rates with UDS is by taking advantage of volume discounts. Volume discounts are typically offered to businesses that have a consistent shipping volume. If you can demonstrate to UDS that you have a significant shipping volume, they may be willing to offer you a discount based on that volume.

Another benefit of volume discounts is that they can help you save money in the long run. By committing to a certain volume of shipments, you can negotiate a lower rate with UDS. This can help you save money on shipping costs over time, which can be especially beneficial for small businesses with limited budgets.

It's important to note that volume discounts may not be the best option for every business. If your shipping volume fluctuates significantly, it may be difficult to commit to a certain volume and secure a discount. Additionally, if you only ship occasionally, the savings from a volume discount may not be significant enough to justify the commitment.

Understanding the Basics of Negotiation Tactics

When it comes to negotiating shipping rates with UDS, there are certain tactics that can help you achieve your goal. First and foremost, it's important to come into the negotiation with a clear understanding of what you want to achieve. This may include a specific discount percentage or a set price for a certain shipping volume. Additionally, you should be prepared to make concessions and compromises in order to reach a mutually beneficial agreement.

Here are some key negotiation tactics:

  • Do Your Research: Understand the market rates for shipping services and know what your competitors are paying for similar services. This will strengthen your case for a better rate.
  • Establish Rapport: Build a relationship based on trust and respect with the UDS representative. This can facilitate a more successful agreement.
  • Be Prepared to Compromise: Be ready to make concessions to reach a mutually beneficial agreement.
  • Document Agreements: Ensure that all agreements are documented and follow up to confirm that the terms are being met.

Preparing for a Negotiation: What You Need to Know

Before you dive into negotiations with UDS, it's important to do your homework. This may include researching UDS's competitors to get a sense of their rates and discounts, as well as evaluating your own shipping history to determine what kind of volume discount you might be able to negotiate. You should also be prepared with specific data and metrics to support your negotiation position.

Another important aspect to consider when preparing for a negotiation is to anticipate the other party's potential objections or concerns. This can help you proactively address these issues and come up with solutions that work for both parties. Additionally, it's important to establish clear goals and priorities for the negotiation, so that you can stay focused and avoid getting sidetracked by irrelevant issues. By taking the time to thoroughly prepare for your negotiation with UDS, you can increase your chances of achieving a successful outcome.

Tips for Negotiating Better Shipping Rates with UDS

When you're negotiating with UDS, there are certain tips that can help increase your chances of success:

  • Stay Positive and Professional: Maintain a positive and professional demeanor throughout the negotiation.
  • Be Flexible and Willing to Compromise: Show willingness to adjust your demands to reach an agreement.
  • Understand Your Needs and Volume: Clearly demonstrate your shipping needs and volume to justify your requests.
  • Be Persistent, Not Aggressive: Follow up consistently without being overly forceful.
  • Clear and Concise Communication: Communicate your points clearly to avoid misunderstandings.

Another important tip for negotiating better shipping rates with UDS is to do your research beforehand. This means understanding the current market rates for shipping services, as well as any discounts or promotions that UDS may be offering. By coming to the negotiation table armed with this information, you can make a stronger case for why UDS should offer you a better rate. It also shows that you are a knowledgeable and informed customer, which can help build trust and credibility with UDS.

The Art of Compromise: Finding a Win-Win Solution

The key to a successful negotiation with UDS is to find a win-win solution that benefits both parties. This may involve some compromises on both sides, but ultimately the goal is to reach an agreement that will help you save money on shipping costs while still providing UDS with the revenue they need to stay in business.

One way to find a win-win solution is to identify areas where both parties have common interests. For example, UDS may be interested in expanding their customer base, while you may be interested in reducing your shipping costs. By working together, you may be able to find a solution that benefits both parties, such as offering discounted shipping rates to UDS customers who purchase your products.

Another important factor to consider is the long-term relationship between your company and UDS. While it may be tempting to focus solely on short-term gains, it is important to think about how your negotiation strategy will impact your future interactions with UDS. By approaching the negotiation with a collaborative mindset and a focus on building a strong relationship, you can set the foundation for a successful partnership that benefits both parties for years to come.

Key Considerations for Long-Term Shipping Rate Discounts with UDS

If you're able to negotiate a volume discount with UDS, it's important to consider the long-term implications of that agreement. This may include:

  • Evaluating your shipping needs and volume over time to ensure that you're still eligible for the discount.
  • Keeping an eye on industry trends and UDS's competitors to ensure that the discount remains competitive.

Another important consideration when negotiating long-term shipping rate discounts with UDS is to review the terms and conditions of the agreement. This includes:

  • Understanding any minimum volume requirements.
  • Restrictions on shipping destinations.
  • Penalties for not meeting the agreed-upon terms.

It's also important to have a clear understanding of the billing and payment process, as well as any potential changes to the discount structure over time.

How to Measure the Success of Your Negotiation Efforts

After you've successfully negotiated a better shipping rate with UDS, it's important to track the success of your efforts over time. This may include:

  • Evaluating your shipping costs and comparing them to previous periods to ensure that the discount is having the desired impact.

Tracking Progress and Making Adjustments to Your Strategy

As your shipping needs and volume change over time, it may become necessary to adjust your negotiation strategy with UDS. This may involve:

  • Renegotiating shipping rates.
  • Exploring new discounts or incentives.
  • Switching to a different shipping carrier altogether.

Best Practices for Maintaining Good Relationships with UDS

Once you've negotiated a successful agreement with UDS, it's important to maintain a positive and professional relationship with the company. This may include:

  • Paying your invoices on time.
  • Communicating clearly and effectively with UDS.
  • Demonstrating a willingness to work together to solve any issues that may arise.

Real-World Examples of Successful Shipping Rate Negotiations

There are many real-world examples of successful shipping rate negotiations with UDS and other carriers. For example:

  • One small business was able to negotiate a volume discount with UDS that resulted in a savings of over $5,000 per year on shipping costs.
  • Another business was able to negotiate a flat fee for all shipments, regardless of size or weight, resulting in significant cost savings over time.

Common Mistakes to Avoid When Negotiating with UDS

When negotiating with UDS, there are certain pitfalls and mistakes that can harm your chances of success. These include:

  • Being overly aggressive or confrontational.
  • Failing to prepare adequately for the negotiation.
  • Failing to demonstrate a clear understanding of your own shipping needs and volume.

Conclusion: Putting Your Negotiation Skills to Work for Better Shipping Rates with UDS

Negotiating shipping rates with UDS can be a challenging but rewarding process for businesses that rely on shipping to get their products to customers. By taking the time to prepare for negotiations, understanding basic negotiation tactics, and remaining flexible and professional throughout the process, you can secure better shipping rates and save your business money over time.

About the Author

Anthony Robinson is the CEO of ShipScience, a pioneering company dedicated to helping e-commerce leaders optimize their shipping decisions, reduce costs, and automate tedious processes. With a Bachelors Degree in Economics from Stanford University, Anthony brings over two decades of expertise in logistics, business development, and operational efficiency to the table.
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