Balikbayan box issues and tips

When I started the business in 1994 in Washington, DC, our charge for a standard box to Metro-Manila was $95 with a $10 pick-up fee.  When I relocated to Los Angeles in 1998 to position Manila Forwarder in the hub of Philippine shipping, gasoline was $1.50 per gallon.  The prevailing price then was $65 for a standard box to Metro Manila while the lowest was $45 per box but you have to buy your box and drop it off an agent or later on, via supermarket drop off.  This practice became unpopular as the shipper's information can be seen, making it a security issue. 

The average balikbayan box

Jumbo Box is one third bigger than the average balikbayan box and is also thicker, and has better quality.  I positioned Manila Forwarder as the quality, an alternative for a better price that targets the well off and educated segment of the market.  Now, Manila Forwarder is the choice shipping company of prominent personalities in business, entertainment, and sports industries.

Initial pricing.  Our introductory price in 1998 was $79 to any point in the Philippines, a good deal for clients who send their boxes to Visayas and Mindanao.  Making this as our market niche, we also added special values like putting security seal in boxes and wrapping them with industrial strength plastic for further protection.  We also offered Internet package tracking, the first in the industry.

Since the shipping lines are catching up from preceding years operational loss, the slowing down of sailing was further aggravated by a $900 rate increase per ocean container in 2008 and an additional $300 increase last June.  Most of these increases have been absorbed by the balikbayan box industry and not passed to consumers as common business procedure would dictate.

Experience and capability.  A good number of existing companies in California are a one-man operation. These entrepreneurs are former agents of established companies that decided to do business of their own.  They have a long experience in picking up boxes and community contacts, but lack the experience in finance, documentation, government regulations, and all the intricacies of the logistic operations.  One-man operation companies usually do not ship their own containers and sub-contract the services to a consolidator.

Pricing.  Cutthroat competition has been for the benefit of the consumer. The balikbayan box industry has been the patron of various community-inspired endeavors before but is slowing disappearing due to some companies who try to short change the business. The industry needs to breathe and consumer support is needed.  Low pricing smells trouble.

Good number of entrepreneurs

A good number of entrepreneurs would put up balikbayan box companies on the last quarter of the year in time for the balikbayan box season without proper planning. Luring consumers with low prices and friendship, they will then obtain a business credit with a consolidator to provide them the shipping services.  However doing business on the red due to low pricing would make them unable to pay consolidators resulting into non-deliveries.  Non-deliveries mean your loved ones will not receive your hard-earned padala.

Not everything has been stagnant in the industry. New technologies have been developed and being implemented by Manila Forwarder and perhaps some other companies. As the leader in balikbayan box technology, Manila Forwarder uses the Voice Over Internet Protocol (VoiP) for after-hours live personnel support for live for worldwide clients. USA and Manila offices also share the same data using Virtual Private Network (VPN) to answer the queries.