(26.11.2024.)
“For small entrepreneurs, especially when starting operations, sending their product to a buyer in a foreign country, including within the European Union, often costs the same as the product itself, and it is disproportionately expensive,” emphasized the Minister of National Economy, Agrarian, Environmental and Regional Affairs of the Saeima on Tuesday, November 26. Ervins Labanovskis, chairman of the Subcommittee on Business Development. At the meeting, the subcommittee decided on support for small producers in conquering export markets, showing opportunities to reduce the logistics costs of small packages.
The cost of small packages can become a significant obstacle for the small entrepreneur to increase the production volume and limit the opportunities to compete. In addition, logistics and transportation costs make up a significant part of the cost of the product, noted the chairman of the subcommittee.
In response to the members’ questions, the representative of VAS “Latvijas Pasts” stated that discounts may be applied to postal items, depending on the number of items. For example, if a company sends 100 or more shipments per month, a 13 percent discount could be applied to it, while for a larger number, up to 33 percent of the established tariff. The tariff is also affected by the weight of the shipment.
From February 1 of next year, small entrepreneurs could be offered the opportunity to cooperate in order to receive a tariff discount for shipments based on volume, said VAS “Latvijas Pasts”.
The subcommittee invited the Ministry of Economy, the Latvian Post, the Latvian Chamber of Commerce and Industry, as well as other cooperation partners to agree on a targeted, time-bound support mechanism for reducing small package logistics costs for small entrepreneurs. E. Labanovskis noted that the support would be necessary until the entrepreneur conquers the market, increasing the volume of production and thus reducing logistics costs.
Saeima Press Service
(In a cheeky, Jimmy Carr-esque tone) Ah, the life of a small entrepreneur, always struggling to make ends meet. I mean, it’s not like they have enough to worry about, what with trying to create a product people actually want, and then having to deal with the joy of accounting and tax returns. But no, the cherry on top is the absolute bloody nightmare of postal costs. I mean, who doesn’t love paying through the nose to send a tiny package to their customers? It’s like the postal service is playing a game of “how much can we fleece the little guy?” (pauses for comedic effect)
Now, I know what you’re thinking, “Jimmy, why should I care about the woes of small entrepreneurs?” Well, let me tell you, dear reader, these plucky individuals are the lifeblood of our economy. Without them, we’d all be stuck buying the same bland, mass-produced rubbish from the big corporations. So, when I saw this article, I just had to weigh in. (smirking) I mean, who doesn’t love a good bureaucratic tale of postal woe?
It seems that the Minister of National Economy, Agrarian, Environmental and Regional Affairs of the Saeima (try saying that five times fast, I dare you) has finally acknowledged that sending small packages is, in fact, a significant obstacle for small entrepreneurs. Wow, what a shocker. The cost of postage can be as much as the product itself. I mean, that’s not exactly a recipe for success, is it? It’s like trying to sell a product while being slowly strangled by a Basel-based postal bureaucracy.
Now, enter the lovely people at VAS “Latvijas Pasts” (who sound like they’d be a great support act for a Latvian folk band), who claim that discounts can be applied to postal items, depending on the number of items sent. Ah, a glimmer of hope! If a company sends 100 or more shipments per month, they can get a whopping 13% discount. Yeah, because that’s exactly what a struggling small entrepreneur needs, more math. “Let’s see, if I send 100 packages this month, I’ll save 13% on postage, but I’ll have to spend 500% more on blood pressure medication.”
But wait, there’s more! From February 1st next year, small entrepreneurs might (note the operative word here) be offered the chance to cooperate and receive a tariff discount for shipments based on volume. Because what every small business owner needs is another thing to worry about, “Oh, I’ve got to make sure I’m shipping enough packages to hit that sweet, sweet discount.” It’s like trying to solve a puzzle blindfolded while being attacked by a swarm of accountants.
Now, I know some of you are thinking, “Jimmy, this all sounds like a jolly good attempt to help the little guy.” And you’d be right, it is. But let’s be real, folks. We all know how these “initiatives” usually pan out. It’s like trying to hold water in your hand – it sounds good on paper, but in reality, it’s just a bunch of empty promises. (chuckles)
In conclusion, dear reader, it’s a tough world out there for the small entrepreneur. But don’t worry, with the help of VAS “Latvijas Pasts” and the Saeima, they might just make it. Or not. (winks)
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(Rowan Atkinson-esque interlude) Ah, the never-ending battle between the small entrepreneur and the postal system. Rather like the epic struggle between Mr. Bean and the pesky letter slot. (chuckles)
(In a Lee Evans-esque tone) You know, I’ve got a mate who’s a small entrepreneur. He’s always sending packages here, there, and everywhere. I’m like, “Mate, how much are you spending on postage?” He’s like, “Lee, it’s killing me, mate.” I’m like, “Why don’t you just use a catapult?” He’s like, “Lee, that’s not exactly feasible.” I’m like, “Fair enough, mate.” (laughs)
(Ricky Gervais-esque aside) You know, it’s funny, isn’t it? We’re living in an age where technology is supposed to make our lives easier, but it seems like the postal system is still stuck in the dark ages. I mean, what’s next? Are they going to start using carrier pigeons? (sarcastically) Oh, that would be brilliant, wouldn’t it? “I’m afraid your package has been delayed, sir. One of our pigeons flew into a window.” (chuckles)
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Back to the article. (winks)
(26.11.2024.)
Speaking to the Subcommittee on Business Development on Tuesday, November 26, Ervins Labanovskis, Minister of National Economy, Agrarian, Environmental and Regional Affairs of the Saeima, emphasized that for small-scale entrepreneurs, especially those in the initial stages of operations, shipping their products to international buyers, including within the European Union, can be prohibitively expensive, often costing as much as the product itself, and therefore, disproportionately costly.
High logistics costs for small packages can pose a significant barrier to small entrepreneurs seeking to increase production volume and limit their competitiveness, as logistics and transportation costs constitute a substantial part of the product’s cost, noted Labanovskis, chairman of the subcommittee. Moreover, this can hinder their ability to penetrate the global market effectively, thereby impeding economic growth. Ervins Labanovskis also pointed out that lowering these costs could provide small entrepreneurs with a competitive advantage, allowing them to expand their customer base and ultimately, increase their revenue.
Responding to the members’ queries, a representative from VAS “Latvijas Pasts” highlighted that the organization offers discounts on postal items, contingent upon the quantity of items being shipped. For example, businesses that send 100 or more shipments per month are eligible for a 13% discount, and larger volumes qualify for discounts of up to 33% of the established tariff, with the tariff being influenced by the shipment’s weight. Additionally, the representative mentioned that the organization is exploring the possibility of introducing a more dynamic pricing system, which could further benefit small entrepreneurs by providing them with more affordable shipping options.
As of February 1 next year, VAS “Latvijas Pasts” plans to offer small entrepreneurs the chance to collaborate in order to secure a tariff discount for shipments based on volume, thereby reducing their logistics costs. In the long term, this initiative could contribute significantly to the growth and development of small businesses in the region.
The subcommittee has invited the Ministry of Economy, Latvian Post, Latvian Chamber of Commerce and Industry, and other key stakeholders to collaborate on creating a targeted, time-bound support mechanism aimed at reducing logistics costs for small package shipping, which will provide a much-needed impetus for small entrepreneurs to expand their operations. According to Labanovskis, such support will be indispensable for entrepreneurs until they can penetrate the market, increase their production volume, and subsequently, lower their logistics costs. Ultimately, this support mechanism is expected to have a positive impact on the regional economy by promoting entrepreneurship and job creation.
Saeima Press Service
