August 26, 2025

The Cost of Choosing the Wrong Service Type

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True Parcel Audit Results

When was the last time your team reviewed the service types they’re actually booking?

Many shippers assume their staff always choose the most cost-effective option — Ground, 2-Day, Next Day, etc. But contracts don’t treat every service type equally. In fact, a poorly negotiated rate on a single service level can quietly drain tens of thousands of dollars from your budget.

Here’s a real-world example:

  • A company thought they were saving money by shipping 2-Day AM instead of Overnight Saver.
  • But their 2-Day AM discount was weak, while their Overnight rates were negotiated aggressively.
  • End result: it was cheaper to send some shipments Overnight than on the supposedly “slower” 2-Day service.

This mismatch happens more often than you’d think. Why?

  • Service type discounts aren’t uniform — carriers push volume toward what benefits them, not you.
  • Shipping staff often just pick what “sounds right” without checking the actual cost impact.
  • Once a bad habit sets in, it quietly bleeds cash week after week.

What you can do:

  • Audit weekly: Look at the service types your team actually used.
  • Compare rates: Is 2-Day actually cheaper than Overnight in your contract? Don’t assume.
  • Train your team: Make sure staff know which service levels are safe choices — and which ones should be avoided.
  • Leverage reporting: Tools like our service-type analysis make these mismatches obvious.

The carriers count on you not checking. But once you start reviewing, you can turn those “wrong service” choices into quick savings without changing a single package.

Learn how smarter service selection saves thousands.

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