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We ship around 100 packages/week... Packages range fom 5-12 pounds, and most are domestic.
It seems like Fedex Ground home delivery is the best option, and DHL isn't bad either. What kind of quantity do we need to ship to get bulk rates?
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Based on these numbers, it's going to be tough to get a really competitive rate out of Fedex or DHL. One nice thing about USPS is that they don't require volume (it's a level playing field).
Considering the package weight (and guessing at how hungry your local sales reps might be) I would think you'd need to double your shipping average to get decent rates. This op is based on what we've seen in our area- I'm sure the shipping companies approach different areas with varying degrees of sales pressure.
Still, it doesn't hurt to ask. I would probably talk with sales reps from FedEx & DHL (and let them know that they are competing for my business). I would also let them know that their current entrenched competition is the USPS. Then I would provide them with a business plan for future growth and try to get a rate quote with that in mind. The shipping rates you end up with will still be higher than USPS but the added customer service and insurance should more than make up for it (the majority of our customers don't mind paying a few bucks extra for FedEx... and it really is only a "few bucks" in most cases). Shipment tracking that actually works is worth $2.00 to me- esp. if my order total exceeds $50.00.
Good luck with all this.