Couriers - Unfair Newbie Customer Rates over Loyal Customer Rates

wid71

Hi,

Has anyone come across newbie customer courier rates that have been considerably lower than existing customer rates for exactly same profile and sometimes even for lower volumes than the existing customers.  How can this be fair?  Has anyone taken the biggie courier companies on over this and won? Is it actually legal?

DullGreyGuy

It's perfectly legal and "new customer discounts" are common across most industries. They just can't offer a gay/black etc discount as that would be discrimination based on protected characteristics. Being a new/old customer isn't a protected characteristic.

If you aren't happy with the rates you are getting complain with your wallet and go to another firm offering new customer discounts, maybe avoid Yodel though. 

Alderbank

You talk about 'courier rates' and 'lower volumes' so sounds like B2B contracts rather than Auntie Mary sending you a birthday present?

Is it legal to charge different rates to different customers? Absolutely.

Has anyone challenged bigger contracts? Of course. Every time a big company like Argos or Asos renegotiates with the likes of DHL or Evri they will have intense pre-contract discussions about price, service level agreements, penalty clauses for non-compliance, etc. The important term here is pre-contract, once the contract is sealed both parties are bound by the agreed T&Cs.

Can you see these agreed T&Cs? Absolutely not! They are strictly confidential, usually bound by NDA. Someone might whisper to you that they know that Sports Direct pay this or that, but there is no way of checking.

wid71

I understand that people can talk with their feet and we will unfortunately be forced too. I just thought I'd remembered something about Broadband/Mobile companies being regulated regarding newbie offers versus regular loyal customers tariffs and wondered if it applied to other industries too.  

We're a small family business and it just leaves a nasty taste in your mouth when you discover the company you've been loyal to for over a decade will offer base rates over £1.50 less than we pay to start up companies who send exactly the same product as us but at a lower volume and with no trading history.  Yet when we try to negotiate our base rate they tell us that we're getting the absolute lowest rate possible? 

lincroft1710

wid71 said:

We're a small family business and it just leaves a nasty taste in your mouth when you discover the company you've been loyal to for over a decade will offer base rates over £1.50 less than we pay to start up companies who send exactly the same product as us but at a lower volume and with no trading history.  Yet when we try to negotiate our base rate they tell us that we're getting the absolute lowest rate possible? 

Well, stop being loyal to them and take your business elsewhere. You may find your existing courier more amenable to negotiation if they think they are going to lose your custom

wid71

We understand that we will have to go elsewhere Lincroft1710, it's just annoying as we're not unhappy with their service, just that they are willing to offer new competitors a far better price than we can get which ultimately effects our business.  

We just felt that seemed a little unfair and thought we'd throw it out there for discussion, looks like we're in the minority though.

jon81uk

wid71 said:

I understand that people can talk with their feet and we will unfortunately be forced too. I just thought I'd remembered something about Broadband/Mobile companies being regulated regarding newbie offers versus regular loyal customers tariffs and wondered if it applied to other industries too.  

We're a small family business and it just leaves a nasty taste in your mouth when you discover the company you've been loyal to for over a decade will offer base rates over £1.50 less than we pay to start up companies who send exactly the same product as us but at a lower volume and with no trading history.  Yet when we try to negotiate our base rate they tell us that we're getting the absolute lowest rate possible? 

It applies to a few consumer things and the CMA have been investigating, the only one I can think of that has actually resulted in a change to the law is insurance.

But as you are a business what applies to consumers isn't relevant. You are expected to be able to negotiated.

If you've been with a company for ten years there is no incentive for them to try get you on board they already have you. Whereas they need to attract new customers. See if another company will do better to attract your business.