The cost of shipping continues to rise. The cost of corrugated boxes, packing materials, labels, labor, fuel and more, continue to rise at a time when margins are being cut by a weakened economy and price competition. Here are some cost reduction techniques to help you reduce costs without reducing your level of customer service or sales.

1. Negotiate. Did you know that FedEx and UPS are competitors? That’s right. Both firms compete for the same business all of the time; why would you be an exception? UPS and FedEx both have sales people that are in the field specifically to attract or retain businesses like yours. Take the time to shop their rates, and remember to ask for a discount. The old saying goes, “If you don’t ask, you don’t get”.

1. Pick Up Service. Make sure you are not lugging your packages by yourself to a shipping store, the post office, or your local FedEx or UPS office. Call or sign up for an account on the web and start saving time and effort by letting them come to you!

1. Proper Sizing. If you are sending out various sized products, make sure you have various sized shipping containers or boxes that coincide with the size of the order. Too many companies send out small items in large boxes. This not only is harder to handle, but it requires additional packing material, tape, and potentially higher fees or surcharges.

1. Consolidate and pack smart. If you can see that there are multiple orders for the same customer, you should consider consolidating the shipments into one shipment. Also, many products are already packaged with internal packing material in place to minimize damage during shipping. Why add to the amount of material by double packing? Perhaps your products can be easily packed into a box with a minimal amount of packing material instead of packing for packing’s sake by filling up the void in the box.

Bonus Tip: Another cost reduction technique is to track your shipments so you can make sure that your shipping dollars are being spent wisely. If a delivery is missed or late, did you know you could track it automatically with Package Fox? Package Fox will track your shipment, file a claim on your behalf if they breach their guarantee, follow up, and collect it for you! Go to www.PackageFox.com to sign up.