BorderBoxes in downtown International Falls is a busy place these days as airlines add additional baggage fees, and as rising fuel prices make choosing the right shipping companies a challenge. Canadian customers also find the business a cost effective option to direct mail.
“The trend is changing and when times get tough certain businesses do prosper,” said Bill Gray, owner of BorderBoxes.
Some of the trends that Gray speaks of are the major airlines, that he says are now charging more for extra bags, and that its sometimes cheaper to ship them ahead of the flight. The extra space on the flight is sold as freight space to outside companies, he added.
BorderBoxes is an authorized FedEx, UPS and Spee-Dee Delivery center and Gray said his strength is with informing customers of which services work best for their needs. He recommends FedEx for international packages; UPS for domestic routes and Spee-Dee Delivery for regional delivery in the upper Midwest states.
Gray also noted that as a smaller carrier, Spe-Dee Delivery has not adjusted for “dimensional weight.” The trend is to justify cost for size versus weight, so that lighter packages with larger length and girth, such as an oil painting, will be charged accordingly.
“I like to give customers an option,” he said. “We use three different shipping companies and try to choose whichever provides the best service and price for the customer.”
BorderBoxes also carries the full line of industry standard packaging materials for all sizes. They have corrugated boxes, bubble wrap, packing peanuts and the right kinds of tape that comply with shipping company regulations.
Gray said that most of BorderBoxes business is local, with some tourists that ship summer purchases home. However, it is the Canadian customer that makes up about half of the customer base.
Canadian customers rent 90 percent of BorderBoxes mailboxes, said Gray. The U.S. physical shipping address avoids excess costs of shipping north of the border, which he noted attracts online shoppers that find some companies won’t absorb the costs of shipping to Canada.
Customers from as far as Kenora and Dryden come to the Falls to send and receive personal and business related packages. Gray said that the strong Canadian dollar means that these customers will also be eating at local restaurants, shopping and filling their tanks with gas that is less expensive than north of the border.
“We’ve got over 300 people receiving goods here and there is a definite need for those people,” he said. “That helps the economy of International Falls.”
Canadian business owners use the U.S. mailboxes to avoid excess brokerage fees by picking up their packages in the Falls, he said.
If a Canadian company buys merchandise in the U.S. to resell in Canada, they buy it, declare it and pay the taxes themselves at the border, said Gray. This avoids having the additional fees of going through a brokerage if it is mailed into the country. Everything is clearing customs regardless.
“Another big thing is time,” said Gray. “An order to a Falls address can be there the next day, while a package mailed to Fort Frances can take up to a week.”
For Canadians, it is the best of both worlds. Anyone could do this but the travel is not going to offset direct shipping costs unless you live close enough to the border.
BorderBoxes also makes keys, offers graphic design services, including signage and custom banners.
BorderBoxes is located at 231 4th Avenue. Call 283-8666.
