Money is a huge factor whatever you do. Sometimes we have a limited budget to work with. You can save on packing & moving services or on transportation. You can get a real deal and to negotiate for transportation discounts. The price the companies offer you for shipping or moving is not the last offer. But, finding a freight carrier is easy to say and hard to find. Also, remember, going with the cheapest company can be a big mistake because you can become a victim of fraud. With the right tips, it is easy to get the best price.
How to negotiate – tips
If you do not have any experience with negotiating, it is not so difficult to learn. With a little work, you can save more money than you think. But, how? Do not worry.
- You should provide the carrier with annual numbers and averages per week (gains and losses too) if you want transportation discounts.
- Show them what are your current costs with another shipping company. It is an incentive for them to provide you a discount in order to start the business with you.
- It is important to freight forwarders to know how quickly do you pay your bills and are you responsible. Show proof of payments (at least five months of invoices and payments) and they will see that you are a serious businessman.
- What is your shipping schedule and are you flexible? If you can adjust to the carrier’s schedule it gives you big chance for a lower shipping cost.
How to get transportation discounts? On what can you get a discount?
You will need a few tips if you have no experience. You can consult with freight forwarders and ask them whatever you want about transportation. Starting a business is not simple. You will need a good team (maybe a professional counselor) and business plan. They have a lot of experience, so maybe they can recommend you a reliable freight company you can trust. And when you find the one, negotiate. Here are some tips for transportation discounts you can negotiate for and how to do it successfully.
What affects the costs
It is important to understand what affects the cost and on what you can negotiate for. Learn what factors affect rates. Factors are the quantity, weight, and the final destination of goods, of course. But also, do not forget about goods that are considered hazardous or risky, for example. Freight companies may change their price because of road conditions, special vehicles for transportation or because of the number of workers involved in shipping. Calculate your own shipping costs according to the average prices before the meeting. You should develop an understanding of current costs. If you want to ship large and heavy items internationally, it is more expensive than shipping in the same country.
Forming an arrangement with a reliable freight carrier is the most important thing. Do your research and try to find the most companies you can and consider all options and conditions. Try to find more shipping companies and find out what is the price for the same services. But, do not choose the cheaper one. It could be a trap. Learn what are the signs of good air freight forwarders you can rely on. Compare the rates for free online. After that, you will be sure you are getting the best price for your transportation.
Develop a relationship with the company
If you want to start a business in Kuwait, then you will need to develop relationships with the companies you want to work with. Especially if you are a small and new businessman. Developing relationships with your colleagues will enable you better deals and more jobs. Spend time to know your carrier representatives, it is worth it. You will be maybe surprised at the number of opportunities on how to cut your transportations costs. And that, with the same speed and quality of delivery.
Knowing carriers’ routes
When carriers are planning their routes, they need to have enough goods, to make their transportations worthwhile. So, you need to ensure you are choosing the correct company. They will lose money if they have empty truck space. Knowing which routes a carrier often makes is helpful. Why is this important? It is important because if a carrier is already making a trip every day, you can get a better price than a route they only run once a week or less. Also, ask what kind of equipment and services they offer to their clients.
Finally, ask for discounts
When you are negotiating for shipping terms, be open and direct. Also, ask carriers what goes along with their services. Competition is big and because of that carriers are often willing to offer you a good price to clients who are willing to change a freight company. Shipping companies can offer transportation discounts based on the volume too. If your business shipping out more packages, they can offer you a lower rate. Ask about association discounts too. Carriers can cut the price because of your membership in trade organizations. That’s why you should be open and to explain to them the situation directly.
We hope that you learn how to negotiate and on what you can negotiate for. No one is born with the experience, so you will learn eventually. Follow these simple steps and if you have a need, hire a professional counselor who can help you with developing or expanding your business.