[ic] Interchange shipping UPS/Fed EX methods

[Jim Balcom]

On Fri, 7 Sep 2001, Mark R. Misko wrote:

MRM>>I have a couple questions regarding UPS/Fed Ex shipping methods in
MRM>>Interchange.
MRM>>
MRM>>1. Are the formulas/methods that come pre-defined in Interchange accurate?
MRM>>
MRM>>2. Does the UPS/WWW Lookup feature display accurate UPS/FedEx when used?
MRM>>Meaning that if I use a default, predefined shipping algorithm (i.e.; UPS
MRM>>Next Day Air - 1DA) and use the UPS/FedEx Lookup as the Charge Type, with an
MRM>>entered origin zip code, will it automatically calculate proper shipping
MRM>>cost (equal to that of UPS)?  Or is it better to use to use the Internal UPS
MRM>>Lookup with downloaded rate and zone charts form UPS?
MRM>>
MRM>>I am deciding whether to use Interchange 4.8 and much of it depends on
MRM>>proper shipping cost determination.  I have only used the Administration
MRM>>section of the demo to view the shipping methods, but have not been able to
MRM>>see if the shipping indeed calculated correctly.

My experience has been that the UPS charts, which can be downloaded
from their page, are very similar to FedEx's charts. CLose enough that
I don't worry about it.

I prefer to do an 'on-site' look-up using the tables that I have
downloaded. I perceive faster performance. Their rates change only once
a year, except for cutting in a fuel surcharge, etc.

Since both companies tend to find ways to charge more than you were
quoted, I tack on a bit extra. As an example, I have to pay a weekly
pick-up fee. So, that needs to get added in. Both companies have, on
the ground side, a 'boondock' fee - the place is out in the sticks and
they don't want to deliver there, so there is another surcharge. If the
customer tells you that they live at 1234 Main Street, Apt 104, but
they are actually in Apt 401, UPS charges you an address correction fee
of $5.00. (No shit!) For a while UPS was assessing me an oversize
penalty of $60 a week because their data entry people were inputting
the package dimensions wrong. It was only after I got drunk and made
some nasty phone calls did I get those charges reversed!

Get the picture? Somebody's got to pay those expenses.

And, then there are boxes and other packaging materials: tape, labels,
plastic bags, peanuts, etc. My boxes from Uline are averaging a buck
apiece. The tape that I use from them is 30 cents a yard. (It's GOOD
stuff!)

IC is GREAT for all of this! I determine the 'normal' cost from the UPS
look-up charts and use that for both UPS and FedEx. I add on 25% to
deal with the vagaries in their wide-ranging cost structure. I also add
on a flat $2.00 to cover boxes, tape, plastic bags, peanuts, etc. I
changed the label on the check out page to be 'Shipping and Handling'.

The bookeeper tells me that this formula is pretty much a 'break-even'
formula. I'm not losing money in the shipping department and the profit
is only a few cents here and there. I do still lose money on some
shipments, like when it's a big box going Next Day Air. I make it back
on others.

(My policy is that if the computer tells you that the shipping will be
$10.95, then that's what it will be, even though I am losing $50 on it.
I stand behind the quote!)

I switched to IC for the 'zone-based shipping' - something I couldn't
find anywhere else, even in software that I had to buy (and, I bought
quite a bit of inferior software.)

My philosophy is that it is not important that the shipping costs be
down to the penny accurate. I think that they need to be equitable. It
costs more to ship 20 pounds across the continent, than to ship it next
door. I want that fairly represented. IC does that very nicely. I think
that the S&H needs to accurately reflect what it costs me to run my
shipping department, and IC is tremendous for that!

(WARNING: IC has a VERY steep learning curve! Be prepared to invest
some time learning it! It's worth it!)


-= Jim =-

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Tagline for Friday, September 07, 2001 at 19:10 PM:
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