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Warning: some shippers are missing out on their carrier discounts

UPS Discount FedEx discount carrier discounts contract negotiation

Carrier contracts are full of complexities. You have waivers to navigate, DIM divisors to negotiate and discounts to discuss before agreeing on a final contract. Afterwards, you sit back, relax, and let the discounts go into effect. But what happens if those negotiated discounts aren’t applied during invoicing? That’s what happened to one Share a Refund customer.

Carrier discounts applied inaccurately

For one shipper, every shipment was being processed as an outbound prepaid commercial shipment. Because the outbound shipments were being tendered as ground commercial shipments, instead of the correct home delivery shipments, the shipper was missing the discounts agreed upon in the carrier contract. Those discounts targeted residential surcharge and residential delivery area surcharges, all which were being missed due to packages automatically being processed as commercial shipments. The shipping label wasn’t being manifested properly resulting in lost money.

Make sure the carrier invoice reflects the pricing agreement

Carriers aren’t going to verify that you are receiving accurate discounts. A tip is to compare the surcharges on a recent invoice with the current pricing agreement. The amount billed should be compliant with the discount stated in the active carrier agreement. If discounts aren’t being charged accurately instead of paying $2.00, the charge will show up as the unnegotiated rate of $3.85 plus fuel. As this discount continues to be overlooked, the dollars add up quickly. Don’t stop at contract negotiation. Ensure that every term agreed upon is carried out consistently.

Share a Refund reviews contract adherence

Don’t know where to start? Review a recent carrier invoice for negotiated rate compliance with the shipping experts at Share a Refund. Our carrier agreement optimization team combs through every detail of a carrier contract to make sure you are getting the best service. With Share a Refund, you can save 10-20% on shipping and bring profits back to your business.

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Analysis and report that details the overspend on recent shipping invoices.