Last week we reported on the new UPS Peak Season Surcharges that will be going into effect on October 4, 2020, and remain in effect until January 16, 2021. These new peak season surcharges apply to the following UPS services:
Additional Handling Fee Surcharge
Large Package Surcharges
Oversize Surcharges
To show the impact of these additional surcharges, we have created three separate actual client shipment examples to prove how these surcharges will impact a shipper’s bottom line come peak shipping season. As you will see from the following chart, these additional surcharges will have a devastating impact on the effected shipper’s bottom line. And, the real question to be answered is how can these companies afford to absorb these increases all on their own?
For one thing, have these companies done anything to continually negotiate, not only their base rates, but also the surcharges the major parcel carriers continue to increase. These companies need to understand that while “everything is negotiable, whether or not the negotiation is easy is another thing.” Which brings us to a central talking point. If your company is not negotiating from a position of strength, then your chances of having a successful negation will fall somewhere between “slim and none.” If on the other hand, your company comes into the negotiation session armed with all the facts, a clear goal of what you expect to achieve, a backup plan “B” or counter offer, you can and will be successful.We suspect that we are getting close to a point, (if we are not already there), where these businesses will have no alternative but to pass some or even all of these increases onto the ultimate consumer. And if they do, how will that impact their businesses going into the busy holiday shipping season; certainly not in a positive way. But what other choice do they really have?
One other point that is really critical, is that if your company does not have ALL of the expert skills necessary to negotiate a successful deal, or if it lacks the data elements necessary to be truly successful, remember you do not have to venture into enemy territory on your own, nor should you.
Help is just a phone call away.
Let us help your company get what it actually deserves, not what the carrier thinks you’ll be happy with!
Learn more about our Parcel Optimization Services by checking out this video…
to receive our FREE white papers: