Monday, July 31, 2017

True Cost Of Home Delivery San Bernardino

By Brenda Graham


While retailers know quite a bit about how the activities on their floor affect sales (how many ups, closing rates, average sale, etc.), many retailers, when asked, are unaware of what they spend on deliveries each year. If you're one of the few retailers still offering in-house delivery San Bernardino, it's important to understand what your true cost is.

When time makes a difference, choosing a delivery service that has the capability of handling your scheduled distribution needs can help you gain a competitive edge. Whether it's life-saving blood donations that must be shipped daily or a simple one-time distribution that can't be missed, scheduled deliveries give you the ability to streamline your services and establish your company as a reliable provider.

Labor Costs- When considering labor costs, many retailers fail to calculate the underside of the iceberg. If a single delivery takes one-hour round trip and requires two of your employees at $12.00 per hour, you just see the tip of the iceberg. However, the underside of the iceberg reveals your direct labor costs which include; FICA, unemployment, health and welfare, vacations, turnover and workmens comp insurance.

Operational Costs- If you're like most retailers, you've kept good records to track your operational cost over the course of a year. But even some of the strongest retailers that keep the best of records fail to tie some of their operational costs to their very source-home deliveries. Don't make the common mistake of chalking up these operational costs to the cost of doing business. These are the costs directly associated with home deliveries: routing, service issues, discounts, property damage, product damage and adequate equipment such as dollies, pads, straps, uniforms, etc.

Scheduled distribution services add a level of automation to your operation that can free you to focus on adding value in other areas of your business. Having the ability to offer scheduled deliveries can often mean the difference between being in business and losing a customer and can give you the competitive edge. It's important to choose a distribution service that can back your promises with the skill and expertise of a team of customer support and distribution professionals whose goal is to take care of scheduled deliveries so that you can focus on taking care of business.

A large title for some types of deliveries where you may only need an ice chest. If you are going into the grocery home distribution business, I have found I worry a little about the frozen items. If I have 4 or 5 deliveries and just spent one hour in the store buying the product things could get ugly. You may have to have an ice chest big enough for 2 or 3 bags of frozen items.

Vehicle Costs- Years ago, I purchased my first Mercedes Benz and got an incredible deal. After performing much research, taking test drive after test drive and comparing prices at every lot, finally, I was the proud owner of the car I had always wanted. Three months later, I wasn't so sure I wanted it. I spent 4,000 dollars on repairs to the automatic air ride system and 349 dollars on my first oil change. Today, the U. S. Energy Information Administration is pricing diesel at 2.90 per gallon. That's $. 36 higher than this time last year. That rarely goes unnoticed, and most of us like to think we pay close attention to every detail.

To truly position yourself at the top, make sure the distribution service you choose offers real-time tracking capability, so that you will always know where your shipment is and when it will arrive, allowing you the ability to communicate effectively with your customers and manage their expectations. Failing at this could end up costing valuable clients and you definitely do not want to imagine this situation.




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