Last week I was working with a CEO that was concerned about the profitability of his company. As I was searching for different ways to help him, I asked to look at a month’s worth of his UPS bills. He spends about $1,000 a day; however, on one day I noticed that he did $5,000. There were 100 packages that were shipped 3 day select. He explained that he shipped a large order for one of his clients. I began to look at the places where the packages were sent and noticed that more than half of them were sent to zip codes where the packages would have been received the same day or sooner if they had selected ground service.
Please take a look at the example in the picture. This 20 pound package arrives at end of the day Friday whether it is shipped ground service or 3 day select. The only difference is the price. The 3 day select package is $27.20; the ground package is $11.93.
Why pay double for the same service?
I asked that question and the response was that 3 day select is guaranteed to get there. Ground is also guaranteed! UPS and FedEx both guarantee that the package will be delivered on time or your money back. It is the same guarantee for both services.
My tip is to compare the service levels and you will substantially reduce your shipping costs!