Small businesses got a reprieve when the U.S. Postal Service was told “no” in response to its request for a rate hike last month. But other shipping costs are going up, and that means owners need to find ways to save money on their mailings.
FedEx has announced price increases that will take effect Jan. 1. And United Parcel Service is raising freight rates. That doesn’t cover overnight letters and packages, but companies that need to ship by freight will be affected.
And the Postal Service is in such financial trouble that it may still get its rate hike approved. It can appeal the Postal Regulatory Commission’s denial of its request, or it can submit a new proposal. So small business owners need to think about how they can save when they send.
Cost Isn’t the Only Issue
First, remember that although you want to save money on mailing and shipping, there are other factors to consider.
Gary Robinson uses the Postal Service to ship many of the packages for his business as a New York-based personal stylist and clothing buyer. But depending on the shipment, and the recipient, he may use a global delivery service instead.
“Who’s going to get it done quickest, most reliably and the most cost-effective,” is what Robinson is looking for. So, if it’s a shipment that he wants to track closely, he’ll go with a delivery service. FedEx and UPS, for example, have more detailed tracking information online.
In more remote parts of the U.S., sometimes the Postal Service can get a package delivered faster than the delivery companies, Robinson has found. But if Robinson is shipping overseas, where many of his clients live, his choice will depend on how reliable mail delivery is in a recipient’s country. If it’s dicey, he’ll use a big global delivery company.
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