Friday, February 13, 2009

Shipping Like a Pro

Auction Freight Desk

Your Partner for increased profits and customer satisfaction

CONTENTS:
I. Freight Pros Save Money While Increasing Satisfaction

Freight Pros Save Money and Increase Satisfaction The price of freight directly impacts the amount buyers are willing to pay for your auction items. You are not selling products shipped via parcel; your products are heavy and typically bulky which can cause the freight bill to exceed $500! Your auction winner adds the $500+ freight bill their winning bid to calculate the total cost of your auction.

Every dollar that is paid to FedEx/UPS, are dollars that should have gone to you. How can YOU keep these freight dollars verses opening your wallet to FedEx or UPS? Once the auction is closed, the sellers have to get the product delivered and maintain positive feedback.

The shipping options for heavy products are more complex than parcel products. Sellers or buyers must contract with carrier to load the product and deliver to the destination. The shipping options for oversized freight seem straight forward, but each option impacts the final sale amount and customer satisfaction. The freight methods available to sellers are:

  1. Pickup Only where seller arranges delivery (Cons: Limits the buyer universe to those buyers who have access to carriers)
  2. Standard Flat Rate Shipping (Cons: Actual freight amount is not known until the product is delivered and the carrier could charge miscellaneous delivery fees)
  3. Free (Con: The seller includes shipping costs into the price of the product and the buyer may get charged miscellaneous shipping fees cutting into profits)

Experienced shippers use LTL (less than truckload) carriers such as Landstar to pickup and deliver their heavy packages. These LTL carriers provide first rate customer service and cost considerably less than FedEx and UPS Freight. LTL carriers have all the shipping tools, but they are not household names; however, experience shippers find these LTL carriers to provide outstanding customer service.

The biggest obstacle to using LTL carriers is obtaining a quote. All carriers requires the shipper to provide freight specific information regarding weight, size, density, addresses for ship from or to, and other shipping instructions for their freight calculator.

Carriers provide online tools collect the basic information and calculate the freight costs. The online tools can be found at the auction site, FedEx, UPS, or Landstar (http://www.globallogisticsofjax.landstaragent.com/Rate_Quote.html) are easy to use and provide rate quotes. But, does your tool of choice provide a competitive freight rate? Our experience has shown that the auction and FedEx/UPS freight calculators can generate 10% to 20% in freight discounts; but the reality is that anyone shipping large packages gets these discounts. However, Landstar Freight Desks, like Global Logistics, can guarantee a minimum 40% freight discounts and typically capture 50% to 60% discounts. These added savings can add dollars to your bottom line. Auction sellers work hard to position their products, develop pricing strategies, managing the business and maintaining customer service.

Freight is typically an afterthought and does not add value to your business; rather it could cost you if your carrier lets you down. Freight is all Global Logistics thinks about and we are able to guarantee that we will put money in your pocket, provide unmatched service and deliver your product. Call me today to discuss how Landstar and Global Logistics can take the worries of freight off your shoulders.


Mel McKern
Executive Sales Agent
Global Logistics
(712) 326-9966
mel.mckern@globallogisticsjax.com

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