It’s that time of year. Again. FedEx and UPS post their rate increases late every year, and you wonder how to pass that rate increase on without losing your shirt or your customer base. Ever wondered how that general rate increase compares to the consumer price increase? I think you know, but here it is in black and white, as it were:
Annual increases in the consumer price index pale by comparison. I suppose it helps to operate a duopoly. The customer, you, tends to be less price sensitive when your two primary service options, FedEx and UPS, match the other’s price increase. 2018 is no exception to that rule.
It you’re going into the new year wondering how best to make sense of the carrier rate increases and wonder how to absorb the shock, consider the Direct-Recovery rate analysis. We’ll deliver a full report showing how the change may impact your business, and how to offset the increase with a corresponding boost in hard and soft cost savings.