How does this shipping work? - GoFuckYourself.com

Pipecrew · 04-24-2013, 05:50 PM

I am fascinated that I can buy a bag of dogfood online that weights 20 lbs and get it in 2 days via fedex for only 4.99.

I am also fascinated that if I spent 35 dollars and get two bags of dog food (40 lbs worth) and get it in 2 days. The shipping is free.

How does this work? I know if I walk into fedex and even try and send something that weights 5 lbs across the country, they are going to jam a 25 dollar bill up my ass so fast my head will spin. If I walked in with two bags of dog food weighing 40lbs and tried to ship it across the country in 2 days, it would probably be 90 dollars.

1) How crazy are their shipping rates negotiated down based on volume? I am guessing like 75%. Maybe someone here knows the answer

2) Are they taking major losses on shipping to try and remain competitive and making up for it in their margins?

Juicy D. Links · 04-24-2013, 05:52 PM

Quote:

Originally Posted by Pipecrew

I am fascinated that I can buy a bag of dogfood online that weights 20 lbs and get it in 2 days via fedex for only 4.99.

I am also fascinated that if I spent 35 dollars and get two bags of dog food (40 lbs worth) and get it in 2 days. The shipping is free.

How does this work? I know if I walk into fedex and even try and send something that weights 5 lbs across the country, they are going to jam a 25 dollar bill up my ass so fast my head will spin. If I walked in with two bags of dog food weighing 40lbs and tried to ship it across the country in 2 days, it would probably be 90 dollars.

1) How crazy are their shipping rates negotiated down based on volume? I am guessing like 75%. Maybe someone here knows the answer

2) Are they taking major losses on shipping to try and remain competitive and making up for it in their margins?

You negotiate rates with Fedex and UPS as a business , but they will rape you if you walk in as a individual at a FexEx office or ship center..

So basically yes the more volume and negotiating you can do and have the UPS and Fedex reps go back n forth you can get the rates low.

Lace · 04-24-2013, 05:59 PM

Hell, it cost me $30 to overnight a friggen birthday card once. It's all about volume.

PeR930 · 04-24-2013, 06:12 PM

Volume gets you a discount but not a whole lot. They definitely take a hit on shipping costs.

Sunny Day · 04-24-2013, 06:28 PM

I worked for a company that had 10 regional offices, each with around 150 salesmen. Every week the salesmen got their weekly sales stats sent to them in UPS Overnight Letters. The company's rate was $6 per letter.This was about 10 years ago when individuals were paying $20+

Penny24Seven · 04-24-2013, 06:32 PM

I use my sister in laws biz to send shit all the time UPS and it saves me a ton but 20 pounds for 5 bucks I am not so sure lol, maybe they think you will come back and spend 100 bucks on socks for your dog

Pipecrew · 04-24-2013, 06:35 PM

Definitely makes sense with the volume discounts.

I just still am amazed logistically that someone like petflow can ship 20-30lbs of petfood for 4.99 anywhere in the states. On top of that, the real rate they are getting is probably like 4.15 and they are compensating for some staff, tape, bubble wrap, boxes and a slight markup to the customer.

sandman! · 04-24-2013, 06:40 PM

volume discounts ...

04-24-2013, 05:50 PM	#1
Pipecrew Master of Gfy.com Industry Role: Join Date: Feb 2002 Posts: 14,887	How does this shipping work? I am fascinated that I can buy a bag of dogfood online that weights 20 lbs and get it in 2 days via fedex for only 4.99. I am also fascinated that if I spent 35 dollars and get two bags of dog food (40 lbs worth) and get it in 2 days. The shipping is free. How does this work? I know if I walk into fedex and even try and send something that weights 5 lbs across the country, they are going to jam a 25 dollar bill up my ass so fast my head will spin. If I walked in with two bags of dog food weighing 40lbs and tried to ship it across the country in 2 days, it would probably be 90 dollars. 1) How crazy are their shipping rates negotiated down based on volume? I am guessing like 75%. Maybe someone here knows the answer 2) Are they taking major losses on shipping to try and remain competitive and making up for it in their margins?

04-24-2013, 05:59 PM	#3
Lace Too lazy to set a custom title Industry Role: Join Date: Mar 2004 Posts: 16,116	Hell, it cost me $30 to overnight a friggen birthday card once. It's all about volume. __________________ Your Paysite Partner Strength In Numbers! StickyDollars \| RadicalCash \| KennysPennies \| HomegrownCash

04-24-2013, 06:28 PM	#5
Sunny Day Confirmed User Industry Role: Join Date: Dec 2010 Posts: 1,406	Big Discounts I worked for a company that had 10 regional offices, each with around 150 salesmen. Every week the salesmen got their weekly sales stats sent to them in UPS Overnight Letters. The company's rate was $6 per letter.This was about 10 years ago when individuals were paying $20+

04-24-2013, 06:32 PM	#6
Penny24Seven So Fucking What Industry Role: Join Date: Jun 2007 Location: USA Posts: 6,287	I use my sister in laws biz to send shit all the time UPS and it saves me a ton but 20 pounds for 5 bucks I am not so sure lol, maybe they think you will come back and spend 100 bucks on socks for your dog __________________ Our site is coming soon. It will be one of the best ever! I know so. Brian and Penny

04-24-2013, 06:40 PM	#8
sandman! Icq: 14420613 Industry Role: Join Date: Mar 2001 Location: chicago Posts: 15,432	volume discounts ... __________________ Need WebHosting ? Email me for some great deals [email protected]

04-24-2013, 06:12 PM	#4
PeR930 Confirmed User Industry Role: Join Date: Dec 2012 Posts: 283	Volume gets you a discount but not a whole lot. They definitely take a hit on shipping costs.

04-24-2013, 06:35 PM	#7
Pipecrew Master of Gfy.com Industry Role: Join Date: Feb 2002 Posts: 14,887	Definitely makes sense with the volume discounts. I just still am amazed logistically that someone like petflow can ship 20-30lbs of petfood for 4.99 anywhere in the states. On top of that, the real rate they are getting is probably like 4.15 and they are compensating for some staff, tape, bubble wrap, boxes and a slight markup to the customer.