What do you consider a beat in class discount from lost proce on parcel shipment?

I have a client at 60% from list, not a lot of experience with parcel, but that is standard on LTL due to crazy tariffs.

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FYI, I finally found answer to this question.

Best in class parcel rates for ground are between 46-56% discount from list price.

Industry average is closer to 40-43% discount from list price.

Just in case anyone ever needs this info.

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My experience with parcel discounts has been all over the place. It depends not only on volume, but destinations, service levels and location of shipping points. For shipping points, if you are in the Memphis area, FedEx usually gives you killer rates, while UPS will do similarly if your near a hub like Louisville.

Usually, the carriers will ask for 12 months of data to determine the appropriate discount or rate.

Makes sense. I do have a lot of experience doing sourcing eventa for Bulk, FTL, and LTL so I am familiar with the negotiation process.l, and benchmarks for companies regardless of whete they sit on the spectrum.

For LTL for exampkes FAKs and Tariff types help me find that benchmark.

Unfortunately have zero benchmarks or even an idea of what good looks like for Parcel.

I dont know for example if the largest industry players should be aiming for 70%, while small players will be around 25% or stuff like that.

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