The number of companies that are not aware of their shipping spend is staggering.
Here's how we know:
It happens every week:
We'll have a call with one of our customers.
We ask them:
"You've been using FedEx or UPS for the last five years, correct? Could you give me an idea of how much you are spending on a monthly or annual basis in shipping costs?"
They'll respond with a number.
Then, when we actually pull the data, it turns out... it's that number times four, or that number divided by 3.
It's really worrying.
So… how can you avoid this?
I'd suggest taking a step back and asking yourself what type of customer you are to UPS or FedEx.
Are you a $100,000 customer?
A $1M customer?
How do you compare to other companies in your city or region?
At 71lbs, we also think it's essential to know how much you're spending on shipping costs in relation to your overall revenue.
Just for reference → in e-commerce, we've noticed that companies spend (to a T) 10% of their revenue in shipping.