Need help finding a 3-5 day courier in UK

New business struggling to compete on postage rates

[ajparty]

I've recently launched a small business where my typical package is 2-3 kg, in a 'sensible' size. I've done my homework on the 'usual suspects' - UPS, Amtrak, DHL, Lynx etc. and the best price I can get for this sort of package is Royal Mail 1st class, at about £6 - 8. This is similar to the most basic price for the couriers.

My competitors, however, are offering three different services - the next day at £6 - £8; 2 - 3 days at £5 and 4 - 5 days at £3.50. They're not so big to have their own operation, so my question is - how do they do it? I don't want to price myself out of the market, but I haven't seen anyone offering this sort of service.

Can anyone help?

[JKMitchell]

Have you tried looking at a competitors site to see if they say who they use for deliveries?

[PCInk]

Big named couriers often don't like small companies. I tried a few but some even refused as they require a minimum number of parcels.

Try the Yellow Pages or BT Phone Book for local companies (many contract through the larger couriers anyway - others are networks that deliver in their areas for each other).

Don't forget that just because a competitor offers £3.50 for a delivery charge, it does not mean that they actually pay £3.50. It could be less (making profits on the charge). It could be more (using profits from goods to pay for the remainder).

[meg8]

Why not order from them and see who turns up at your door.

I post out a similar size package and have spent a year tryng to get my postage costs down. I suspect they are taking a loss on the postage, I've never heard of anything that cheap.

Beware of cheap courier companies. They are terrible, (I won't start my tale of woe) you may decide it's better to pay in money than heartache.

[topr8]

>>Don't forget that just because a competitor offers £3.50 for a delivery charge, it does not mean that they actually pay £3.50.

as has been said! we ship at a loss (on the shipping), we believe it encourages sales.

[percentages]

Where your profit comes from is your problem.

A large number of major US sites offer free shipping......well we all know that ain't real. So they build the shipping into their costs!

I don't have to pay to visit a store (well okay I do, but, most people don't see it that way!). So why should I pay for shipping online?

Answer is to offer free shipping and add the price of shipping to your product!

People hate the added costs! Remove them all. We pay your VAT, we pay your shipping, we pay your restocking fee......of course it is all added into your price......but, the consumer doesn't care about that!

[ajparty]

Thanks for all the tips, appreciated.

It leads to the question: why offer different varieties when the cost is almost the same? Having 'three - five day' doesn't make a lot of sense if the actual cost is the same as the 'next day' delivery - all you are doing is losing money. Surely it would be better to promise 'next day' to everyone, unless you really do have such a quantity of orders that there is some logistical benefit in waiting.

[topr8]

>>why offer different varieties when the cost is almost the same?

good point.

but just because another site is doing something doesn't mean that they have looked into it or that it is better.

amazon offer free shipping, or "pay for" quick shipping

[meg8]

>>why offer different varieties when the cost is almost the same? Having 'three - five day' doesn't make a lot of sense if the actual cost is the same as the 'next day' delivery

If I was doing that then my reason would be that I would spend the morning packing up all the 'next day' orders and the afternoon packing up all the 3-5 day orders, then it wouldn't matter when the courier picked up (ours have to be rung by 2 o'clock, so we always have to prioritise the orders). I suppose it depends on whether you have things packaged up and ready to go.

Except in the busiest couple of weeks though it would make business sense just to get up a bit earlier!