In my last post, I shared a real life example of a company that could have saved over $2,000 on shipping. I explained that ground service was guaranteed and would arrive at the same time as 3 Day Select for specific zip codes. I asked him if he would begin to compare rates and his response is astonishing—yet one I have heard too many times. He said no.
“Why?” I asked.
“Because we bill our customer for the shipping charge.” He responded.
“But you could save the customer 50% on those packages.” I replied.
“It doesn’t matter; it is too much of a hassle to change and it doesn’t save us any money.”
I see his point. Yet this is a serious problem. The carrier is the only one that benefits from this scenario. Why should he change? Why should he try to set up a system to compare service levels if it does not save his company any money?
What do you think?