Overnight delivery services has increased the speed by which we do
business. With FedEX, Airborne, UPS and the USPS Express mail,
businesses are able to set and meet tighter deadlines, conduct
business rapidly, and stay in touch over long distances. Although
still a relatively recent innovation, overnight delivery is now
ubiquitous, with businesses expecting delivery the next morning for
anything of even slight importance.
Next Day Ships Overnight / Next Business Days
Letter $10-$16
Box $8-$10 1 to 3-lbs.
$3 Per Additional Pound
Second-Day/Economy Ships Overnight / Two Business Days
(Offered By Fedex & UPS Only)
Letter $3-$10, $3 Per Additional Pound
Box $3 (Up to 2lbs. - USPS Priority Mail 2-3days)
Over the past several years, the national overnight carriers have
greatly expanded their menu of shipping options. Now, businesses can
choose among as many as four different guaranteed delivery times when
sending packages.
The fastest services promise delivery to major metropolitan areas
by 8:00 or 8:30 A.M. These programs carry a hefty premium of $30 or
more over other services and are primarily offered by UPS and Federal
Express.
Traditional morning delivery services promise delivery by 10:30
A.M. or 12:00 noon to most locations. These remain among the most
popular overnight services, since they deliver packages in time for a
thorough review and response.
Afternoon delivery services are designed for slightly less urgent
packages. These programs promise delivery by 3:00 or 5:00 P.M., and
cost a few dollars less than morning delivery.
Most overnight delivery services also offer options for two-day
delivery. Two-day delivery tends to cost about 40% less than
next-morning delivery, with delivery guaranteed by the afternoon of
the second day.
A few years ago, only Federal Express was capable of tracking
packages while they were in transit. Now all companies have similar
systems in place. The main difference is how rapidly each carrier can
notify you of a package's status, with response times varying from
half an hour to a full day depending on the carrier.
For the high-volume shippers who use tracking on a frequent basis,
a more important consideration is the availability of computer
tracking software. This allows you to access shipping information
easily and quickly from a PC, so you spend less time on the phone or
searching through reference books. Most firms offer software that is
easy to install, with access to tracking computers via dial-up lines
or the Internet.
If you ship fewer than 3 overnight packages per week, generous
discounts will generally be unavailable to your firm. To get the best
deal, you should use whichever carrier is best suited for each
particular package. To do this, first open an account with each
carrier and obtain rates for different weights and destinations.
Then, before you ship, choose which carrier offers the best deal for
that particular package.
Another way for small businesses to obtain lower rates is to work
with a shipping consolidator. By combining shipping volumes from many
firms, consolidators can negotiate lower rates. Although packages may
be shipped via several different carriers, firms need only place one
call to the consolidator for pickup.
For firms that send numerous overnight packages each week, the
best way to save money is to find a carrier that best fits your needs
and then negotiate customized discounts. To start, first estimate
your monthly shipping volume. Be generous in your estimates, since
rates can later be adjusted to reflect your actual traffic. Then
approach carriers that best match your shipping patterns.
Airborne, Federal Express, and UPS specialize in letter-sized
packages. UPS recently switched to a distance-based pricing
structure, which may make it particularly attractive if you often
ship to nearby locations. Burlington and Emery do not offer as
competitive rates for letters, but are much more competitive for
businesses sending large packages.
In addition to the major national carriers, there are a number of
regional overnight carriers in the market. These companies specialize
in the expedited delivery of packages within a defined geographic
region.
Smaller shippers that have special shipping needs but find they
are too small to warrant much attention from the national providers
may want to consult a regional carrier. Regional carriers are often
quite flexible in accommodating specific needs and concerns.
Generally, a company should be shipping about five packages a week
to consider working with a regional carrier. Pricing from these
carriers at such shipping volumes can be quite competitive with the
larger players.
Until recently, only the Postal Service's Express Mail has a
standard program that delivers on Sundays and Holidays. Since March,
1998, FEDEX started offering Sunday deliveries, at a premium.
Emery uses a different pricing system than other companies. Prices
are quoted for each package based on the firm's current traffic and
shipping loads.
When sending a package, make sure to ask when in the day the
recipient needs to receive it. Next afternoon delivery is
significantly less expensive than morning delivery.
Some carriers offer heavily discounted overnight shipping
envelopes to companies willing to pre-pay for shipping.
Check when packages arrive. You may not have to pay for packages
that arrive after their guaranteed time. While some carriers will
refund the full price of a shipment that does not meet its deadline,
others will only discount the cost to reflect the level of service
that was provided.
