Shipping is eating us alive
We are a veteran owned and run small startup. Currently, we are using USPS for our shipping needs but the costs are astronomical. Our typical shipment includes 1 box (30″ x 30″ x 8″) and 1 tube (57″ x 3″ x 3″ with 10″ girth). The weight on the box is around 10 lbs 7 oz, and the tube is approximately 13 lbs 6 oz. Not only are we paying the shipping but also a balloon fee. Today, as we dropped off items, they claimed to be saving us money by doing away with the balloon fee of $20 but proceeded to calculate what seemed to be a “weight per square inch” ratio that ended up being more than the balloon fee. I believe they called it a “linear inch by weight calculation”. The shipment we mailed today was $71 and would have been $46 using the old balloon fee, and that was just the box. The tube costs an additional $23 or so, both prices dependent on location. Our product will not bear the weight of increased price so unless we can find other shipping options, we will have to resort to on-site sales only, which will not sustain our business. What would you recommend?
I would recommend getting quotes form FedEx and UPS if you haven’t already. Not only do they tend to be cheaper for heavier packages, but they will offer volume discounts to business accounts — the more you ship, the higher your discount.
You can also get a quote from a 3rd party service like Unishippers — these companies pool small businesses together under 1 account so you can get the maximum UPS discount.