ProPack What Costco can Teach us About Shipping
Apr 17, 2015

What Costco can Teach us About Shipping

In our household we divide up the grocery shopping amongst a couple of stores. One of the stores we always go to is Costco, and no matter what time of the day or what day of the week they are always busy. In all my years of shopping there I have NEVER been the first person in the check-out line.
Costco is busy for many reasons; one of which is the consumer can purchase in bulk. A 10-gallon tub (over exaggerating) of mayo will last you forever and people buy it along with the never-ending box of fish crackers, bags of chicken and toilet paper.
Purchasing such items in bulk at a Costco, a Sam’s Club or a BJ’s Wholesale Club is smart because of the savings one can have.
People, like my wife and I, and possibly you, do not want to have to pay more for something if we don’t have to. These wholesale club stores help us save and at times, save big.
So, where does the savings come from?
These wholesale club establishments are able to offer savings on several name-brand and high-quality foods and household goods due to the deals they have with “THEIR” suppliers to sell their products in bulk.
Basically they have relationships with companies that we, the public, do not have. Said relationships, are present due to large volumes of business. That savings is then creatively passed onto the consumer, thus causing large check-out lines.
When it comes to shipping products, we have found that many of our clients have had a similar “Costco” cost savings experience.
As a business if you setup a new account with any of the major carriers (FedEx, UPS and DHL), You will more than likely have to pay “Book Rates.” Book rate is the base factor carriers use for their ground, air and international billing. These are the rates you’ll get off, and
More than likely you’ll be paying these standard rates until you’re able to ship enough volume to start earning discounts.
Here at ProPack we have unique relationships with major carriers such as FedEx, UPS and DHL. We ship on behalf of our clients via our own ProPack accounts. Thus, we’re able to build on the combined volume of our many clientele to negotiate good discount programs with the different carriers. We then are able to offer better discounts to our clients than they’d get going directly to the carriers.
Saving our clients on their shipping is another part of the supply chain in which ProPack’s services add value.
Like the big wholesale club chains, we too use our strategic relationships with our customer’s savings in mind. If you’re tired of pay the standard box rate shipping fees, give us a call and start experiencing great savings other than in the check-out line at your local warehouse shopping club.

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