If you run your business out of a "house", check this out! - 'bout UPS

[Bill Stearns]

Hi All -
Almost fell out of my chair 'other day! I know many of you run your businesses out of a "house", as I do. You may want' a look into this! MY UPS (freight-in) costs have always seemed high. Still, I've never questioned 'em in all these years. Until the other day! I received an order of printed business cards. The printing cost $20.25. The UPS (freight to me) was $13.74. I phoned the company to ask: why so much for shipping? Was shocked to learn: UPS has me registered as a "residential classification" - 'stead of a "business/commercial" drop. (a higher S&H cost to me.) Nothing the printing company could change; I'd have to contact UPS. Just realizing, this week, that ALL my suppliers have been shipping to me using this residential designation - all these years! (Yipes!) Being told by UPS they have to send out an "investigator" to look at the property 'n decide the issue.
Here is why I've never given this any thought: I run my engraving business out of a "house" building: located on a main-drag; surrounded by other businesses. Have never, in a million years, considered mine a "home business". The entire main floor: a showroom, work areas, office, supply room; my basement a workshop. Even the kitchen is used for business purposes!
A billboard out front. Banners across the front of the building. I am zoned "limited business". I have a MN State tax ID. I pay higher property taxes; 'least triple the "house" next door. I live on the second floor: a bedroom 'n bath. Waiting now to hear back from UPS. ('least a 4-day process I'm told.) Have also learned: UPS apparently relies on the U.S. Post office designation of residential v.s. commercial. Go figure. Waiting now. Angry as heck at how much money I've spent unnecessarily on UPS S&H over the years - 'cause of this "oversight"! Might this be an issue with anyone else?

Bill

[Kristian Matz]

This is standard for UPS. As far as I know if you run a business out of your house you are classified as residential. We were told that residential is more to do with location than having a commercial account. We have many customers with home based business that we ship to where we have to classify them residential. Also if we designate them as commercial and it is residential, we can get charged an adjustment when we get the UPS bill.

[David Somers]

Bill,

I have no idea if this would help or not. But for years I lived on my boat and had a UPS store box. I still have it since it is next to my office building and wicked convenient. Also resolves the problems our neighborhood has with mail and package theft. I wonder how that classifies in terms of UPS shipping rates? They kindly email me when I get a package in so I don't have to keep running over there checking for something I am waiting for. And unlike a Post Office box, it appears as a street address to a shipper so there are no restrictions on who will ship to it like you find with a Post Office box. I do normally find it is cheaper to do Priority Mail with the USPS rather than Fedex/UPS overnight or 2day service.

I am not a business by the way. Just some observations.
Dave

[Kev Williams]

Been running this engraving business in the basement since the folks moved into this house in 1969. We're definitely residential. City wouldn't let us put up a sign, or even hire employees, other than immediate family. Fortunately we've never needed either one.

I've been aware for some time residential shipping rates are different. One of many reasons I use the post office as often as humanly possible. Lately I haven't found one USA shipping situation that the post office couldn't do faster and cheaper than FedUps. International, maybe not. I can ship something from Utah for less than $6 on Saturday afternoon and have it show up in Connecticut on Monday. FedUps can't do that. I only ship FedUps by customer request, and even then I usually don't ;) But stuff shipped to me, I'm at the mercy of who shipped it. Is what it is...

[Mike Null]

Residential shipping rates are the norm. Also higher rates for low density areas. Combine low density and residential with UPS and you will pay a fortune for shipping. I am also a home based business and pick up my JDS stuff from their warehouse (next to UPS) to save excessive shipping costs.

[Bill Stearns]

Everyone - here is a follow up on my problem ...
I received an e-mailed notice from UPS this afternoon. Sure enough they plan on keeping me registered as "residential". (their policy cut 'n dried: if you live in the building too - in this case, upstairs - it's considered a "home"; "home business".) I've got' a real problem with this for the following reasons:
1. I am zoned business.
2. Have a MN sales tax ID #.
3. The building is 99% business use; I'm known as a business; I'm surrounded by businesses.
4. Bill boards and banners out front
5. I pay [business rate] property taxes
6. Even the Post Office has me as "commercial"
7. The UPS drivers know I'm a business.
8. I've been a UPS customer for 25 years, at this location. - all this being just a stinky way to charge me more than necessary for UPS shipping in! Gonna raise cane with 'em - I'll let you know how it goes!

Bill

[David Somers]

Good luck Bill!! Fingers are crossed for you!

[Phil Thien]

If you are always open business hours (like 9-5, Monday-Friday), then go back at them again and tell them you want to be classified as a business.

The reason they charge more for residences is the extra hassle getting signatures, sometimes having to leave packages with neighbors, etc. Businesses are typically open 9-5 and they know they are going to successfully deliver that package the first try.

[Bert Kemp]

Been running this engraving business in the basement since the folks moved into this house in 1969. We're definitely residential. City wouldn't let us put up a sign, or even hire employees, other than immediate family. Fortunately we've never needed either one.

I've been aware for some time residential shipping rates are different. One of many reasons I use the post office as often as humanly possible. Lately I haven't found one USA shipping situation that the post office couldn't do faster and cheaper than FedUps. International, maybe not. I can ship something from Utah for less than $6 on Saturday afternoon and have it show up in Connecticut on Monday. FedUps can't do that. I only ship FedUps by customer request, and even then I usually don't ;) But stuff shipped to me, I'm at the mercy of who shipped it. Is what it is...
Kev,
I have on occasion when I thought sxh was way out of line, like when i order a vest patch for 3$ and they say sxh $8.95 ups or fedup. I call them and ask if they could just put it in an envelope and charge me a couple bucks sxh. Most time they say sure they can do that.
I once ordered 30lbs of river rock for engraving they wanted I think it was like 40 bucks sxh fedup. I called and asked if it would fit in a large flat rate box they said they would try it and it did cosy 16 buck usps flat rate. So sometimes its worth a phone call. jmho

[David Somers]

Bert,

I had similar experiences living in HI. Folks often insisted on shipping overnight Fedex to the Big Island. It was physically never going to get there in less than two days. And wicked expensive to boot! Yow! I finally got hold of a manager at one company I order from a lot and explained what was happening. Next thing I know I got a call from them saying they would do USPS priority for me and make that available to everyone in the islands. I was ever so grateful! Boy did that save $$. It pays to ask and push a bit.

Dave

[Joe Pelonio]

I had that same issue since moving to the house in 2007, but it hasn't been much of problem becuse I have local suppliers for almost everything, so I just pick things up. Business cards I have always done myself, and the sign supply in Seattle was happy to deliver free to my house despite being about 14 miles out of their way from their route. Good luck with the battle, but unless you do a lot of business with them I'd doubt they will bend. Back when I was spending several hundred a month with them they gave me a discounted shipping rate.

[Mike Null]

I don't believe UPS will change their policy. They don't have to and, in some respects, their costs are higher to deliver residential. I am on a discount plan but it's barely enough to matter.

Since I ship to Canada frequently I use the Worldship program and I must pay a $10 per week fee for pick ups to use that program.

[Phil Thien]

BTW, is FedEx ground a more reasonable cost option? Until recently I've preferred UPS but FedEx ground has really improved quite a bit.

[Mike Null]

Phil

I used FedEx because they were cheaper but I couldn't get any straight answers from them on my Canadian shipments hence my change to UPS. All things considered I feel that UPS is the superior service.

FYI, a few months back I purchased a 2d scanner and can now populate all but two fields on my international and domestic labels for my largest customer and that includes electronic invoices for international shipments.

[Scott Shepherd]

BTW, is FedEx ground a more reasonable cost option? Until recently I've preferred UPS but FedEx ground has really improved quite a bit.

We've found FedEx to be substantially less expensive than UPS from our location. I had to ship a job to California that was fairly large. UPS was $45 to ship it, FedEx was $17. What's normally in the $12-13 range for UPS, comes in around $7-8 for us with FedEx.

[Curt Harms]

We've found FedEx to be substantially less expensive than UPS from our location. I had to ship a job to California that was fairly large. UPS was $45 to ship it, FedEx was $17. What's normally in the $12-13 range for UPS, comes in around $7-8 for us with FedEx.

We're not a business but when shipping something I always check all 3 options. We're paying retail of course. UPS is always higher. FedEx ground is more often competitive with USPS, usually 10-15% higher but if I needed reliable tracking & delivery info I'd go FedEx ground.

[Phil Thien]

We've found FedEx to be substantially less expensive than UPS from our location. I had to ship a job to California that was fairly large. UPS was $45 to ship it, FedEx was $17. What's normally in the $12-13 range for UPS, comes in around $7-8 for us with FedEx.

That has been about my experience, too.

I used to hate FedEx ground. They'd quote 3-4 days in transit and then it would take 7-10. But they've improved quite a bit.

[Mike Chance in Iowa]

The problem with Fed Ex is they sell their residential routes to other drivers. Even though it's a Fed Ex truck and uniform you see, it may not be a true FedEx employee. We had a problem with FedEx at our old house. Because we were so rural, everything was considered Residential Delivery. The Fed Ex route was owned by a group of Romanians and they would hold the package several days until they had more packages to deliver out our way. They would update the status as "Could not find address" or "Attempted Delivery. No one there." or "Business closed." when they never made an attempt to deliver it at all.

Convincing UPS you are a business when it's flagged as residential can be a challenge. Our former neighbor had a thriving mail order business that would fill the UPS truck up each night with packages. She had a full retail center and shipping building, but also had a house on the property. Once again, because we were so rural, UPS flagged her as Residential until she took her business to FedEx. Once Flat Rate Shipping became available with USPS, she started shipping more product via USPS.

[Bill Stearns]

AN UPDATE -
My thread took a left-turn with you all talking ‘bout options for shipping products OUT - versus using UPS. My original post: I was talking ‘bout UPS charging me their residential delivery rates - for products being delivered to me by my suppliers. (i.e. JDS, Johnson Plastics, etc.) - at higher costs to me! If you recall, UPS had me registered as a "residential drop off" ‘stead of "commercial". I called, and e-mailed, UPS giving them the reasons I should be considered commercial; reasons I posted earlier. UPS "investigated" and, as of this morning, they have switched my designation to "commercial/business" location! I called JDS - sure enough they had me listed as "residential" shipping; she changed the designation within a minute. (Now, I have to contact my other suppliers to have this changed.)
Telling you all this, ‘cause if you operate out of a "house" - as I do, yet you are primarily business - (I live on the second level) - you may be able to lower your incoming UPS freight costs. Anyway, my problem is apparently resolved ... but, oh, I can only wonder how much this oversight has cost me over time!

Have 'great day! - Bill

[Phil Thien]

AN UPDATE -
My thread took a left-turn with you all talking ‘bout options for shipping products OUT - versus using UPS.

Not really, we were saying to have your suppliers ship to YOU using FedEx, or at least get some quotes for doing so. My larger suppliers are shipping all day long via UPS, FedEx, USPS, and a number of other regional carriers, too.

Looks like you got the UPS issue worked out, but I'd still check those FedEx rates.

We also often specific USPS. They (for the time being) deliver Saturdays, and items shipped clear across the country often arrive in a couple of days.

[Jeff Belany]

Just FYI -- if you ship FedEx to a residential address it will ship as FedEx Home and will cost more than to a commercial address. Same as UPS. However I do agree that FedEx does seem to be less expensive than UPS. I have no idea how FedEx would treat the OP problem with being classified as residential. Call them and ask.

Jeff in northern Wisconsin