- Original Poster
- #1
I have been reading various threads etc about parcel deliveries, both here and on other money saving forums, and I am writing this thread to urge businesses in particular to consider more than just the top line price paid when evaluating their parcel delivery costs.
Through the past couple and the next few months the parcel carriers will be facing very tough trading times, where they are not getting the critical volumes that they need to operate profitably. Which will result in price increases.
Already this is feeding through, as DHL put through quite a lot of price increases at the begining of December and January, surcharges are increasing, and included redeliveries etc are falling. What I urge businesses to do is look at the true costs of their deliveries and consider the following as well as the top line price;
(1) Redeliveries - are there any included in your price? - if not you are putting a huge cost in £ and inconvenience on your customers to go and collect from Depots if they are not in for the one delivery attempt. Is that customer going to re-order from you - Nope! (For example, my nearest Citylink Depot is 70 miles away, the other side of Glasgow)
(2) Excess Weight Surcharges - A post this week from a member who has seen Parcelforce increase the excess weight over 30kg from £1 per kilo to £2 per kilo. A massive increase.
(3) Third Party Collection Addresses - Another surcharge which is easier for the carriers to increase than their top line prices.
(4) Lost Parcels and Non-deliveries - cheap prices come from companies putting more items on the vans, and the chances of a non first attempt delivery increase. How much does this cost your business in time chasing and dealing with disappointed customers.
(5) Insurance claims - cheap resellers make peanut profits on your parcel, therefore their incentive to carefully process and chase any insurance claim is minimal
I have discussed the real unseen costs of these items further in my blog; Cheap Parcels? The real cost. The parcel companies are facing very tough trading circumstances, and this is already resulting in the closure of smaller local depots. Delivery costs are an important element to most businesses large and small, and now is a time to pay close attention to all of the costs, internal & external, and not to try and simply chop 50p of the topline price.
Through the past couple and the next few months the parcel carriers will be facing very tough trading times, where they are not getting the critical volumes that they need to operate profitably. Which will result in price increases.
Already this is feeding through, as DHL put through quite a lot of price increases at the begining of December and January, surcharges are increasing, and included redeliveries etc are falling. What I urge businesses to do is look at the true costs of their deliveries and consider the following as well as the top line price;
(1) Redeliveries - are there any included in your price? - if not you are putting a huge cost in £ and inconvenience on your customers to go and collect from Depots if they are not in for the one delivery attempt. Is that customer going to re-order from you - Nope! (For example, my nearest Citylink Depot is 70 miles away, the other side of Glasgow)
(2) Excess Weight Surcharges - A post this week from a member who has seen Parcelforce increase the excess weight over 30kg from £1 per kilo to £2 per kilo. A massive increase.
(3) Third Party Collection Addresses - Another surcharge which is easier for the carriers to increase than their top line prices.
(4) Lost Parcels and Non-deliveries - cheap prices come from companies putting more items on the vans, and the chances of a non first attempt delivery increase. How much does this cost your business in time chasing and dealing with disappointed customers.
(5) Insurance claims - cheap resellers make peanut profits on your parcel, therefore their incentive to carefully process and chase any insurance claim is minimal
I have discussed the real unseen costs of these items further in my blog; Cheap Parcels? The real cost. The parcel companies are facing very tough trading circumstances, and this is already resulting in the closure of smaller local depots. Delivery costs are an important element to most businesses large and small, and now is a time to pay close attention to all of the costs, internal & external, and not to try and simply chop 50p of the topline price.
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