If it’s not broke, don’t fix it.
It’s an old cliche, but some businesses still take this approach to their shipping contracts. Many often think that since they’ve stuck with one company for years and have cultivated a good relationship that means they’re getting the best deal.
That’s not usually the case.
Take Park Hill Collection, a family-owned business which sells home furnishings, decor, and gifts. Between wholesale and eCommerce, they ship their curated items all across the country, and even internationally. Their curated collection brings meaningful pieces together for meaningful moments.
Park Hill has a great relationship with FedEx Ground, and has been using them exclusively for over a decade—but that fact doesn’t necessarily mean they were offering their best pricing.
Keep reading to see how Park Hill partnered with Reveel to cut their shipping costs, even at the brink of a global pandemic.
Partnering with Reveel + Early Contract Negotiations
David Montes, the recently appointed Director of Warehouse Operations, contacted Reveel back in June of 2019. He expressed that they had competitive rates with FedEx but he felt it was time to have a true bidding process for Park Hill’s parcel business—whether that meant staying with FedEx or moving to UPS.
David knew they had an opportunity to work with the carriers on rates, but Park Hill didn’t have the depth of internal knowledge they could get with Reveel.
“They have a feel for the industry and they know what the ground carriers are charging,” said David.
Working through contract negotiations—normally a time consuming and arduous process—required less of David’s time and energy.
David said having Reveel in his hip pocket helped him relax throughout the process because “you know [Reveel is] looking at the data of companies that are similar to yours, and they know what FedEx and UPS can do.”
Partnering with Reveel gave David all the tools he needed to run a successful negotiation and secure a contract beneficial to Park Hill.
A Race Against COVID-19
With COVID-19 on the verge of shutting down the country, David and the Reveel team reached an agreement with FedEx. With a signed contract in hand just before the pandemic washed across the United States.
“I don’t think we would have been in any position to negotiate afterward,” said David.
And the timing was fortuitous. Like many small businesses, Park Hill faced canceled orders and a significant volume drop. The savings they saw in the new FedEx agreement gave them one less thing to worry about over the coming months.
The contract negotiations will work to their advantage in the coming months also. Early on, FedEx pushed to remove their money-back guarantee from their contracts. Despite several attempts to remove it, David and the Reveel team vigilantly asked to include the guarantee. Although it’s currently suspended, Park Hill will reap the benefits when it’s reinstated.
David’s Advice to Other Businesses
“You have nothing to lose,” said David. “Reveel is there to help coach you through the negotiations and ensure you’re hitting the high points that you need to.”
He continued, “They analyze the data and know exactly how you fit in with those carriers. That’s what it’s really all about.”
Save Money on Your Shipping Contract
It’s never a bad time to review your shipping contract for potential savings. Now it’s your turn. Contact our shipping experts today to compare your rates against the industry standard and see where you can save.