Yes we work with FedEx, UPS and DHL and some carriers have higher volume commitments than others.  Some customers use one carrier and some use all three.  It really depends on the operation.  On larger shippers it is sometime best to use UPS for ground, FedEx for domestic air and DHL for international.  Customers that ship under $20,000.00 a month usually get the best deal by using only one carrier.  We currently do not have any customers using one carrier that pay any management fees that are not incorporated into their rates.  About 3% of our customers are paying $19.95 a month for some integration subscription fees.  Larger customers that are spending over the $20,000.00 a month are paying between $1,000.00 and $2000.00 for a set-up fee and the same amount annually for a subscription.  If extensive programing is needed cost could be higher but that is rare. 

 

Once we set up a customer that pays no subscription or management fee we never go back and add on those fees if their volume drops.  We don't put smaller customers in a position where they sign a volume commitment with the carrier.  Larger customer may need to commit to volume requirement to get the best rates.  If the volume drops below the commitment it is up to the carrier to decide it there is a rate adjustment, but our fees to the customers would not change.

 

We really do our best to protect our customers and to do what is in their best interest.  As customers needs change we can make adjustments to help the customer.

We can't offer a discount with the USPS.  We can offer free tracking with the USPS and we can insure USPS with a third party to offer a savings, but we can't offer a discount on those rates.  Currently the USPS is not a focus of our business.  Only a few of our customers use the USPS and that use is minimal. Our solution can print the label but the customer needs to take the parcel to the post office to pay the postage.  We can support more USPS processing but a management fee would need to be paid because the USPS will not pay us any fees.  When customers tell us their needs we will give them a variety of options based on their situation.

 

Good question.