Do the pages of an invoice ever seem unending as you sift through the line items to pinpoint savings and expenses? Navigating through invoices can be complicated, especially with carrier-specific lingo plastered all over the invoice. Recently, we covered FedEx earned discounts, but now let’s take a deeper dive into revenue thresholds.
Where can I find the revenue threshold on my FedEx invoice?
If you are looking at your FedEx invoice, the revenue threshold verbiage is shown in small print directly above the sender and receiver information on the Shipment Detail section. The sentence will say, “The Earned Discount for this ship date has been calculated based on a revenue threshold of (dollar amount).” The dollar amount listed will be a number based on weekly calculations. See the blue dot below as an example of what to look for on your personal FedEx invoice.
What does the revenue threshold tell me?
The revenue threshold is used to determine the level of the Earned Discount. When reviewing your FedEx Earned Discounts options, you will notice that FedEx sets ascending Annualized Base Transportation Charges. These monetary ranges show how much transportation spend you must produce for FedEx on an annual basis in order to qualify for specific incentives. Agreements are created to reward shippers for gross transportation spend. The more you spend, the bigger your reward! FedEx highlights this transportation spend on your invoice to track discount tiers. As your spend expands, you will see an incrementally higher Earned Discount. Let’s say your FedEx invoice shows a transportation spend of $20,000. By multiplying this spend by 52 weeks, you can calculate the approximate transportation spend per year and identify the potential discount bracket your account falls under to figure out the savings percentage. It is important for a shipper to know, and monitor, their revenue threshold because changes can alter the discounts they receive. If the average goes down, let’s say after a seasonal rush, a shipper may not be receiving the level of discount they think they are. Make sure to communicate with your carrier if you are aware of a seasonal dip in your shipments.
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