Originally posted by: NeoPTLD
The cost to ship overnight by UPS or FedEx for non-account holding consumers is about two to two hand half times the cost of shipping by Postal Service Express Mail, but companies almost always use FedEx or UPS.
If they are a volume ground shippers, how much discount do they get on their ocassional overnight shipments?
The answer isn't quite so easily given as UPS, and I'm using them because I'm more familiar with them than FedEx in the corp. world, has a tiered system for companies. The company's rates are based upon what the company can commit to as the amount they guarantee to ship with UPS on a monthly/quarterly/yearly basis.
My company allows its employees to ship under their UPS contracted pricing structure. So we can ship packages and we get charged what the company would for a similar weighing package.
Notice I didn't mention size anywhere. That's because size is immaterial for most larger companies and their shipping contracts with UPS.
Here's a case in point with a package I shipped a while ago. I sold an original Schwinn Sting-Ray bicycle online to a fellow in Colorado. I'm in Georgia. The bike was partially disassembled and packed quite well in a standard sized bicycle box......a box that falls in the Oversize 1 shipping cost structure for non-corp. clients. The packed bicycle and box weighed 38#. I paid $13 and change to ship it ground via UPS. Compare that rate to Oversize 1 for a regular off-the-street Joe shipper.
As for overnight......well, we rarely had to use that. But I have used 2-day via UPS, and the cost was typically only a dollar or two over the ground cost. A 4 pound package anywhere in the U.S. will cost me under $5, two-day is under $6-7.
Corporate clients get a huge discount, but a lot of the discount the company gets depends upon the volume the company can guarantee being shipped via UPS.
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