Benchmarking Small Parcel Costs – Lesson 1:

The importance of benchmarking:  Knowing where your pricing should be in negotiating your small package contracts.  If you were to buy or sell a home in today’s market– what would you do to determine the value of that home?

You would go out and get comparable prices or “comps” of similar homes in the area to determine the value of  your home, wouldn’t you?

Of course you would. It would be foolish not to. And yet when it comes to negotiating  FedEx and UPS contracts, over 90% of companies like Boeing and Best Buy fail to get the “comps” they need to make intelligent decisions– and as a result, they leave thousands –and in some cases million of dollars of lost saving on the negotiating table.

Welcome to—we are a member organization made up of experienced small package contract negotiating specialists who have reviewed and negotiated thousands of FedEx and UPS contracts.

We know small package contracts and we know pricing. We know where your contract pricing should be based on our experience in the industry. It’s called Benchmarking. Its called knowing where your pricing should be based upon what other companies like you are paying for their UPS and FedEx shipments—and it is no different than comps or comparable pricing of homes in the real estate world.

“Yes but I can negotiate my FedEx and UPS contract just as good if not better than a specialist.”

No you cant. Negotiating your UPS or FedEx contract once every two years does not give you the experience or the bench marking capabilities of knowing where your pricing should be. You can only get that from someone who has negotiated thousands of small package contracts

“Yes, but my contract doesn’t expire for another two years.”

It doesn’t matter. You can renegotiate your contract at anytime because all it is is an agreed upon pricing structure for a particular period of time– and that pricing structure can be renegotiated at any time. We know—most of the contracts we renegotiate are done before the end of the contract. So why wait until it expires when you can start saving money today?

“Yes, but I’ve been negotiating my contract for the last 30 years.”

Yes you have–and you’ve been leaving thousands of dollars of your company’s money on the table for the last thirty years as well. Just because you have negotiated your contract for the last 10 or 20 to 100 years, does not make you an expert or proficient.

Think about it. Best business practices demand knowledge in any kind of negotiating process and unlike the real estate world where you have access to public records of prices of comparable homes in your area, the small package world is totally different. Do you think for one moment UPS or FedEx will tell you what other companies like you are paying for their shipping and where your pricing should be? Of course not. It would not be in their best interest to do so. And yet when you see that UPS posted record profits in 2011 in a struggling economy–in an economy where most companies were cutting back or laying off employees, it shows you exactly what’s going on–they know something you don’t.

Hey, let us help you even the score. We are Small Package Contract and with thousands of  contracts under our belt, we know what those small package corporate guys know and what they don’t want you to know.

Contact us today for a free analysis of your UPS and FedEx spend and see for yourself how we can save you 3-23% off your existing small package contract

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