postage costs in your business
Depending on your
business operations, you may have large postage or freight expenses. Whilst
these are necessary for your success, reducing these costs will obviously
increase your final profits.
Having said that,
it is never worth cutting corners to save a few cents at the expense of service.
Sure, you could use less packaging and save money, but if the products arrive at
customers’ either broken or damaged, you will have the extra costs or repairs or
replacements – not to mention bad will.
So, keeping your
products sufficiently padded has to be a priority, but once that is taken care
of you could consider some of the following tips:
average phone call In Australia will cost you 20 or 25 cents, a fax little more
and an email costs nothing. A standard letter will cost you $0.50 for a stamp.
Before you mail something, ask if it could be sent as effectively by fax, email
- Talk to
your local post office about bulk mailing costs. These can be substantially
cheaper than regular postage charges. Ask if the bulk price can apply over a few
days rather than a single mailing.
- If you
are sending out packages of the same size regularly, then you can buy in the
envelopes or boxes in bulk.
- Look at
the usefulness of padded bags versus boxes filled with packing foam. Compare the
rices with the benefits for your particular products.
ahead. Instead of sending two packages to one place, can you compile the items
into one? Many businesses will send a parcel and follow it up a day or so later
with the invoice; is it feasible to include the invoice in the original package
to save the 50cent stamp for the invoice?
packaging as small as possible for the item(s) to be transported. This leaves
less room for movement and damage, as well as needing less additional packaging
stamps in bulk – you can boxes of 50, 100 or 200 stamps. This doesn’t save on
the cost of the stamps, but it will save you time buying them more often. It
also requires less administrative effort to pay for stamps once a month instead
of once a week.
- Unless it suits
your business image to do so, don’t use the heavier grade of paper for letters
and other documents. For one or two pages it wouldn’t matter, but over a large
document the extra weight could end up costing you in extra
things as soon as possible. It is when things are delayed that you will get
charged more for overnight or urgent delivery by the post office or a
around for freight services. There can be a wide range of prices for what appear
to be the same services. It may be worthwhile to use more than one courier
service if their local and distant rates vary greatly. However, with freight and
couriers, check what is and isn’t included in the costs before making a final
decision, and then monitor the service.
assume that because your customer is paying for the freight, the cost doesn’t
matter. Clients will factor the freight costs into their purchases and extra
freight could be the difference between buying from you or not. Likewise, cheap
service from your courier may reflect badly on your business, too.
Tash Hughes is the owner of
Word Constructions and assists
businesses in preparing all written documentation and web site content. Tash
also writes technical and business articles for inclusion in newsletter and web
to Business homepage