With carriers like UPS enjoying record high profits due to price hikes, businesses that failed to monitor their contracts closely enough might see huge cost increases.
In today’s hypercompetitive markets, things can happen in a blink of an eye. Your existing carrier agreements may be a huge burden rather than a benefit. Here are five good reasons you shouldn’t just set and forget your company’s carrier agreements.
1. The market changes and your needs might change with it.
Just because you’re happy with your current carrier agreement doesn’t mean it will always be the best option for your business. The marketplace is constantly changing, and what might have been a great deal a few years ago might not be so great now.
Carrier pricing also changes often, so it’s important to keep an eye on the market and see if there are any better options. It might be good to review your options every few years or even sooner if you think the market has shifted significantly.
If you’re not regularly reviewing your carrier agreements, you could be missing out on opportunities to save money. Keep an eye on the market and be ready to jump ship if a better option comes along.
- What you should do: Review your carrier agreements at least once a year to make sure you’re still getting the best possible deal.
2. Your business may not be the same as when you signed the agreement.
When you first signed your carrier agreement, your business was probably in a different place than it is now. If your business has grown, you might be shipping more volume than when you signed the agreement. In that case, you might be able to get a better deal by renegotiating your contract.
On the other hand, if your business has shrunk, you might be overpaying for shipping. Again, it’s important to review your contract regularly to make sure you’re not overpaying for shipping services.
Additionally, you may also find yourself discovering unnecessary spending that is hidden in the details. For example, you might be paying for services that you don’t use or for insurance that is no longer necessary.
All of these things will impact your bottom line and the type of pricing tiers that make sense for your business.
- What you should do: Review your contract regularly and be prepared to renegotiate if your business has changed significantly since you signed the agreement.
3. The terms of the agreement may have changed.
You’re usually locked into a long-term contract when you first sign a carrier agreement. However, the terms of that contract may change over time. For example, your carrier might hike prices or change the terms of the agreement in ways that are not favorable to your business.
Keep in mind that carriers are businesses that are focused on profitability. They will eventually consider hiking prices to suit their own needs. However, they are always willing to renegotiate with customers who demand it.
- What you should do: It’s important to stay on top of the changes to your contract to renegotiate the terms if necessary.
4. You might be able to get a better deal elsewhere.
Even if you’re happy with your current carrier, it’s always worth shopping around to see if you can find a better deal elsewhere. There’s nothing wrong with being a loyal customer, but you should always look for ways to save money.
Carriers are always trying to attract new customers with special deals and promotions. If you’re not regularly shopping around, you could be missing out on some great deals.
It’s also worth noting that your competitors may have a better deal with the carrier you’re currently signed up for. If that’s the case, you might be able to get a better deal by switching to the same carrier or renegotiating your contract using your competitor’s deal as leverage.
- You should shop around regularly to see if you can find a better deal elsewhere. You should also be aware of the deals your competitors are getting so you can use them as leverage in your negotiations.
5. Carriers may not always keep their promises.
When you’re negotiating with carriers, it’s common for most carriers to make all sorts of promises to get you to sign on the dotted line. However, those promises are not always kept. It’s not uncommon for carriers to change the terms of their agreements after you’ve signed them.
For example, a carrier might agree to give you a certain discount for a certain period of time. However, after that period expires, the carrier might hike prices without giving you any notice. Additionally, the carrier might also change the terms of the agreement in other ways that are not favorable to your business.
- What you should do: Be sure to get everything in writing and never sign off on your right to refund or cancel if the carrier doesn’t keep any of its promises.
Protect Your Business
As you can see, there are a few reasons why you shouldn’t set and forget any carrier agreements. To protect your business, it’s important to review your contract regularly and be prepared to renegotiate if necessary.
You should also make sure you’re always looking for better deals elsewhere.
Things change, and your business may need to adapt quickly. By being proactive, you can avoid any potential problems down the road.
Reveel’s powerful tools can help you find the data you need to save on shipping costs, whether you’re in the middle of a carrier agreement or planning to renegotiate. Contact our team today to request a demo, or sign up for free.