Couriers/Carriers

||MARK||

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Jan 24, 2009
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Having read some of the other threads to do with couriers/carriers, i thought it would be a good idea to get a sense of what everyone is paying per parcel and volume etc...

This is what i currently get:


Courier/Carrier:Interlink Express - Next day delivery by 3pm (min 8 per week)

Volume required: 20 per week

Rates:
up to 1kg = £4.80
up to 5kg = £6.00
up to 30kg = £7.00
This could help us all, to try and negotiate a better deal with whatever courier company you use if we post our rates.
 

KidsBeeHappy

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Normally those using DHL will have the cheapest top line prices. However, i think it's really important to consider ALL your costs associated with shipping;

  • Time & Costs of dealing with non collections & rebooking.
  • Time & Costs of dealing with non deliveries and customer disappointment
  • Time & Costs of dealing with breakages/losses etc.
  • How much do you pay for third party collection addresses?
  • How many redelivery attempts in your contract - are you making your customers drive 30miles to collect a parcel?
  • Excess kilo charges?
  • Have the standard dimensions on your contract rate decreased?
I wrote a post about this a few months ago.

The way the parcel industry is at the moment is quite volatile, all need volume to keep their businesses sustainable, but at what cost. Most need to put their prices up to make a profit.

So most parcel carriers are using less obvious pricing increases whilst keeping the top line price static.

So, please, although the top line price is the one that catches the eye, please pay close attention to the small print.
 
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||MARK||

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Jan 24, 2009
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Of course, i agree that all of those factors need to be taken into consideration.

The aim of the thread was to get a general idea of what volumes are required for the rates given by the couriers, which in turn would let you know when you should be onto your courier to re-negotiate the deal.
 
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KidsBeeHappy

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Generally, if you're sending 50 parcels a month, as a rule of thumb, then you should be able to negotiate a good discount rate.

Thing is, that the good account rates with the better suppliers (ie Interlink, UPS, Business Post) are still in the same region as the pay-as-you-go reseller rates with DHL.

And the one thing that I sadly hear again and again and again when it comes to parcels, is that the sender is frequently prepared to drop every other requirement and consideration for their parcel delivery if it means that they can save 50p on the top line price. (Hence my post a while back).

It's amazing how many "it ABSOLUTELY MUST BE THERE BY TOMORROW" parcel bookings turn in 2-5 day economy services when you tell them the economy rate is £1 cheaper.;
 
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||MARK||

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Okay, yeah, the more you send the better the rate.

I do agree with your comments, and in no way would i encourage people to simply switch due to the top line price either, your other points must be taken into consideration aswell.

On the other hand, for example, say someone had a similar send volume with the same company as someone else on here, and the rates were totally different, that's where the most benefit would come from with the aid of this thread.
 
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KidsBeeHappy

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I agree. And I hope it does that. I believe that a lot of businesses would be better off switching from the DHL resellers, paying 50p a parcel more and having a properly managed parcel account. That 50p will recouperate itself quickly.

Also, there is a lot of negotiation out there at moment with the parcel companies, so i would always recommend shopping around between them. And there is nothing to be gained by not telling them what rates you've been quoted by the other carriers.

I hope that this doesn't turn into a "don't use parcelforce, they're crap" thread, because all carriers have some good & bad depots, good & bad drivers etc.

One thing that may help;
  • DHL's reliability levels (ie first time collection & delivery, no damage etc) is around 80%.
  • Interlink is between 93% and 95%.
  • Citylink claim to be 99% but that is based on very recent transactions, last couple of months only, and measures simply those that were collected first time - so if they didn't collect when booked, it doesn't count as a failure)
  • UPS is 99.7% - one of the best. But they have probably a world record in the number of surcharges that can be applied to an account.
  • Parcelforce, TNT, etc are between DHL and Interlink. APC are around Interlink levels. Fastway are in a world of their own (and anyway use parcelforce for outside of local areas, so you can't assess properly).
I think these numbers are important when evaluating the prices.
 
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Jon123

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Jan 28, 2006
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Boxby how cheap are dhl rates?? are the resellers just taking a small cut or aiming to make big volumnes or both?

I thought I got some good rate of business post today - 6.75 next day.up to 25kg

If I do 200 I get £5 next day.

Jonny
 
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KidsBeeHappy

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Some of the resellers are making about 40p a parcel - which is why their customer service is completly crap. Their margin just about covers the paypal fees. Which is why you see so many arrive with a big bang, bargain rates and lots of noise and quietly disappear a couple of months later.

Some obviously are better.

But generally, if they're making £1 a parcel they're doing very well.
If they're relying on PPC to get those bookings, well basically - they're stuffed!

Business post are very good - not partic keen on delivering to residential customers though - are yours B2B deliveries?
 
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Another point people need to take into account is the type of client you are delivering too. B2B or B2C.

DHL and Parcelforce seem to be geared up for home and business deliveries, most of the others want business delivery addresses only, though in a recession I'm sure they will take home deliveries as well.

Regarding reliability, I have used DHL for two years and found them to be excellent overall, but it will differ depending on areas, drivers etc. I have stuck with DHL because of the driver, he offers me two collections a day, 11-11.30 am and 3-4pm, my Citylink driver delivers at 8am each morning at the latest.

Develop a good relationship with your delivery drivers and it helps a lot.
 
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UPS GUY

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Apr 18, 2009
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I agree. And I hope it does that. I believe that a lot of businesses would be better off switching from the DHL resellers, paying 50p a parcel more and having a properly managed parcel account. That 50p will recouperate itself quickly.

Also, there is a lot of negotiation out there at moment with the parcel companies, so i would always recommend shopping around between them. And there is nothing to be gained by not telling them what rates you've been quoted by the other carriers.

I hope that this doesn't turn into a "don't use parcelforce, they're crap" thread, because all carriers have some good & bad depots, good & bad drivers etc.

One thing that may help;
  • DHL's reliability levels (ie first time collection & delivery, no damage etc) is around 80%.
  • Interlink is between 93% and 95%.
  • Citylink claim to be 99% but that is based on very recent transactions, last couple of months only, and measures simply those that were collected first time - so if they didn't collect when booked, it doesn't count as a failure)
  • UPS is 99.7% - one of the best. But they have probably a world record in the number of surcharges that can be applied to an account.
  • Parcelforce, TNT, etc are between DHL and Interlink. APC are around Interlink levels. Fastway are in a world of their own (and anyway use parcelforce for outside of local areas, so you can't assess properly).
I think these numbers are important when evaluating the prices.
Hi Boxby,

I'm an Accounts Executive for UPS. I write the LOA's (Letter of Agreements), I authourise/write discounts and implement them where fitting. I had my own business for 12 years and am fully aware of issues regarding reliability

Many thanks for the 99.7% rating, we pride ourselves on the service we provide. Saying that, when you offer a money back guarantee on service you have to have a well organised and deciplined staff training module. Until we bought Lynx 2 years back we were at around 99.99%, we have just about got their drivers/depots in shape.

If you or anyone are not UPS account holders then please email me your needs. I am straight John Bull. Surcharges etc will be in with prices I give. VAT is down to God and Gordon but you'll be getting that back each quarter so no need to worry about that.

What to drop on email. And please do not fib about volumes, computers do not take into account what you thought you would do.

Company Name:
Postcode:
UK Volumes per month/week/day:
WW/Europe Volumes pw/day:
Percentage B2B or Residential:
Average Weight in Kg:
LxWxH in cm (Usual size of parcels):

Of course I can arrange all of the extra's. Labels and printer, daily pick up at latest possible time. As ever these are volume linked but you might not have to be sending as many as you think. One thing I will assure you of is this, I can reduce the price, but the service is never diluted.

I am part of an office based team. I wanted this because of my views on environment issues. We have over 8000 vehicles on the roads, seas and in the sky. I do not want to be adding to global warming driving around visiting people that might not even have the time nor inclination for a sales pitch. People can read what I have to say and I can explain all things over the phone. And if necessary I can arrange a tech visit. We have Paperless invoicing available now to many countries at no extra cost to save on paper, and speed up customs clearance. There is lots more we are doing but I am not one to feature dump on people. I took this job for many reasons, and I am proud to be with the biggest and best in the World.

I can't promise that Dave the driver wont get a punture, I can't promise a road wont be cut off because of a flooding or accident. But I will do my best to get it there when it has to be. And if its not, there is usually
a money back guarantee to try and ease the problem. Pass this on to the customer and usually they are happy.

Oh, please give me a little time to get back to you. I am very busy lately. And feel free to google "DHL redundancies USA", "TNT redundancies", then try UPS. And guess who will be doing the DHL USA deliveries? In harder times we know you don't get rid of people, you employ to make the service even better.

Have a nice weekend.

UPS GUY
 
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gibby

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Sep 11, 2007
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we are sending out 50 to 100 per week

with business post /uk mail all 24 hr

small bag 4.00
medium 4.25
large & x Large plus parcels etc 4.75
all plus vat - no fuel surcharge


they dont charge us for redelivery but i know they usually do

What we did find is that firms started fighting for our business lately

the service with UK mail is OK and we dont have the hassle of an 0845/0870 number as we ring the local depot for any problems
the drivers are really good but we did have a small issue of parcels getting damaged but they have sorted that & compensated us for it


We also got a quote from fed ex which was 4.90 for 48 hour with a 3% surcharge

Parcelforce were charging us 5.20 which included a massive 7.5% surcharge
There service was really good most of the time but they did have a habit of returning undelivered parcels to us - without notice which cost us a bit
they also did deliver parcels to neighbours without carding customers etc

hope that all helps

G
 
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UPS GUY

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Apr 18, 2009
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UK Volumes per month/week/day: 15/day
WW/Europe Volumes pw/day: 15/day
Percentage B2B or Residential: 30/70
Average Weight in Kg: 12kg
LxWxH in cm (Usual size of parcels): 14kg Volumetric

Hi Armitage,

I managed to get to stay home this weekend, and did reply to you on another forum but I think it was removed (Probably as spam but this is just something I was doing when bored)

On those volumes you'd be looking at around £4.49 0-5kg £5.11 6-10kg (Inc F/s of 2.5% at the mo on std nxt day with mbg) B2B. This would then set you up with 49% off of our Tariff Guide for WW/EU shipping. Get a quote from our website (I can't post link till I reach 14 posts) and deduct percentage to work out export prices. There is a £1.55 resedential surcharge in UK. Armitage, if you were to put all volumes through us you'd be looking at 59%+ discount for international because we work to a tier basis of spend and save. You would have the perks of PCA (Preferred Customer) with direct dial support, no automated garbage. Freight Forwarders would need around a 15k upfront payment on account to deter 1 off hit and runs. 3 attempted deliveries at no extra cost and on all an info notice through the letter box so you can go online or ring in and arrange a convenient time. We don't have a congestion charge for London like some and if you need it we can have a parcel delivered in New York by 08:30 am nxt day, covered by Money Back Guarantee. (Ooops, feature dumping).

There would also be massive discounts on pre 09:00, 10:30 and 12:00 services, and a standard 44% off of import transportation. Extended area surcharges apply to KA and above IV21 postcodes. In rare postal codes we have used OSP drivers (Contract) but its a one let down and your out kind of thing. So they do know our rules.

My advise when shipping with us is get your drivers mobile number. Our guys and gals are brilliant, and do bend over backwards for you. Our logic is simple. One driver circles the same 2-3 postcodes all day delivering and picking up, it gets sorted at the hub, sent to its depot, and given to the driver that circles the destination postcodes all day.

If you want to talk about using us direct and not speak to Sharon at Dodgey Dereks parcels and express delivery company then by all means drop me your details on pm and I will get someone to give you a bell. I will need the correct info though. Company Name, postcode, contact name/number (Direct dial of decision maker, not middle person passing on info) volumes weights and dims. etc.

Gibby, you meet the criteria for the above UK rates. In honesty the criteria is around 14 per week. The service wil be just as good as Joe Bloggs one off shipper that pays £17.95 Parcels all have £60 insurance loss/damage. If you want extra it is available at 1%, min £330. Some use it or find their own cover. Most insurance companies will cover us because of our record.

Like I said, if you want to chat pm your details. Limits of small parcels side are uk-70kg pp, max 330 cubic cm. LxWxH cm/6000.
eg: 120x30x30/6000=18kg

You wont get these rates via our main number as call centre are not privvy to them. As mentioned I will try and get back asap but we are inundated at the moment. I figure its because of end of year and people seeing the fuel surcharges they paid last year. To anyone I always recommend going direct. Then all info is first hand.

UPS GUY
 
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UPS GUY

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Apr 18, 2009
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I highly recommend random tins of quality street, and a good old fashioned Christmas tip.

Bloxby,

If you only saw our drivers wage packets you would be asking them for choc's. Its a monkey/peanut thing. In honesty they are worth every penny. Being American owned we are masters of getting the best out of our staff and their loyalty is unquestionable. Kinda like a kiss your badge scenario with footballers.

UPS GUY
 
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ArmitageShanks

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Dec 24, 2008
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Thank you Mr UPS, you're going about this much more professionally than others.

Unfortunately we pay less than that with saletrack, and have been offered less again through Express Packages who ironically can set UPS sub accounts.

How would we book, through campuship?

Edit: the one thing I would be interested to hear, and that is how low can you go- what's your break even point/
Also what volume do you need to ditch the residential surcharge?
 
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UPS GUY

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Apr 18, 2009
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Thank you Mr UPS, you're going about this much more professionally than others.

Unfortunately we pay less than that with saletrack, and have been offered less again through Express Packages who ironically can set UPS sub accounts.

How would we book, through campuship?

Edit: the one thing I would be interested to hear, and that is how low can you go- what's your break even point
Also what volume do you need to ditch the residential surcharge?

The break even point is not a massive amount less than that Armitage (To save you time), and it can't really be worked out until AFTER you have shipped for a while. Negotiation is in your court, any bid to win business goes to our head office and takes 1-2 weeks. Having been a business owner I know its nature to try for a better price, but don't expect an immediate answer. C/ship, Worldship or regular Internet booking is your choice, though I know we'll advise you your best option -again- after you have shipped a while.

Brokers are all well and good until you have that one parcel -or even letter- that has to be there a day earlier, or even an hour or 2 earlier. I can ring the country manager or depot manager where its going and say "If it can happen, then please make it so". I have never had an incident where it didn't happen. I have even rang customers customers and explained situations and saved embarrassment for them by claiming it was my own fault, when it never has been.

That's really hands on, and many pay much more than the prices I have quoted just for the peace of mind. This is the service we deliver, as well as the parcel.

UPS GUY - DIRECT (Not diluted)
 
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KateCB

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May 11, 2006
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We use APC, £4.00 for 1kg, 5.00 for 1.1-5kg, 8.50 for 5.1 - 25kg. 25p per kg after that; fuel surcharge is 2.5% at the moment, and we have a great relationship with our driver which does help. We had a few problems earlier this year, but they were sorted out quickly and to be honest after 5 years of use, we cant complain!

We did briefly go to Amtrak- prices were silly - sadly the service was too and we actually lost two of our customers due to Amtraks poor service - back to APC we went! We can send as few as 5 parcels a week or at peak times perhaps 20 - 30, August we might send 5 in the month, however we arranged with APC at the start of the contract that this was not to be charged at the usual minimum 5 parcels per week rate as our business is seasonal and they have been fine about it.

We do use Royal mail too for lighter items - a single belt weighs around 300gms, so we can send this bybrecorded delivery for about £2.00 instead of the minimum £4.00+VAT of course with APC.
 
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can crusher

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May 1, 2009
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we have used a reseller to send our DHL parcels, we send out about 300 per month, about 200 are 2 kg and go by Royal mail small parcel £4.41, they have not lost one yet. the rest go by DHL 75% to private addresses and 25% to business, we pay £6.65 for home delivery 2-3 day (most are delivered next day) and we pay £6.65 for business addresses next day so far we have 100% delivery since January. these prices are for any uk mainland addresess and include VAT
So what is all the fuss about, the best price I could get I could get for the whole 300 per month direct was £8.23
 
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UPS GUY

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Apr 18, 2009
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we have used a reseller to send our DHL parcels, we send out about 300 per month, about 200 are 2 kg and go by Royal mail small parcel £4.41, they have not lost one yet. the rest go by DHL 75% to private addresses and 25% to business, we pay £6.65 for home delivery 2-3 day (most are delivered next day) and we pay £6.65 for business addresses next day so far we have 100% delivery since January. these prices are for any uk mainland addresess and include VAT
So what is all the fuss about, the best price I could get I could get for the whole 300 per month direct was £8.23

Hi Can Crusher,

Like I say, if its not broke, don't try and fix it. You are getting 100% UK-UK B2B (around £4.47 1-5kg with us) or 14 consignments per week. If you get probs then email me. Being as big as we are we don't beg for business. I do this for my own personal research. Things to look at for business people are:
How good do we look when we turn up? (Big Amercan styled van)
How important are your customers?

ups guy
 
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ArmitageShanks

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Dec 24, 2008
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we have used a reseller to send our DHL parcels, we send out about 300 per month, about 200 are 2 kg and go by Royal mail small parcel £4.41, they have not lost one yet. the rest go by DHL 75% to private addresses and 25% to business, we pay £6.65 for home delivery 2-3 day (most are delivered next day) and we pay £6.65 for business addresses next day so far we have 100% delivery since January. these prices are for any uk mainland addresess and include VAT
So what is all the fuss about, the best price I could get I could get for the whole 300 per month direct was £8.23
Have a look at this thread:
http://forums.moneysavingexpert.com/showpost.html?p=17409039&postcount=4

Which resller out if interest?

Also have a look at getting packet post. 2kg 1st class is £3.81
 
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ArmitageShanks

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Dec 24, 2008
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Hi Can Crusher,

Like I say, if its not broke, don't try and fix it. You are getting 100% UK-UK B2B (around £4.47 1-5kg with us) or 14 consignments per week. If you get probs then email me. Being as big as we are we don't beg for business. I do this for my own personal research. Things to look at for business people are:
How good do we look when we turn up? (Big Amercan styled van)
How important are your customers?

ups guy
Weight banding and location pricing
.....very UPS specific.

Flat rate up to 30kg, too much to ask?
 
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I only send parcels occasionally but use a company called parcel2go.com. I don't have an account with them but the prices you have quoted virtually match what I pay using my credit card. There are discounted rates available if you open an account and arrange regular pickups.
I haven't been let down yet and have sent parcels as far away as Australia and they have always arrived on time.
 
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