3 Tactics to Minimize Wholesale Dollar Merchandise Freight Costs
3 Tactics to Minimize Wholesale Dollar Merchandise Freight Costs
With prices going higher and higher, one area of concern for those who own a dollar store is associated with how to maintain control of freight costs associated with bringing the wholesale dollar merchandise to their store. As fuel costs shoot for the sky, actions must be taken to not only keep freight hauling costs under control but to also maximize the impact of every dollar spent on hauling. Obviously the answer is not to stop bringing wholesale items to your store unless decreasing total sales is the goal. While some store owners find little opportunity to cut freight costs back, other recognize this just isn't the right time to sit back and accept the added burden on their bottom line.
Fortunately there are actions to take. In this article I present 3 tactics to reduce freight costs for your business. In some cases they will not be workable for your specific circumstances. However, all are worth seriously considering, and trying. Take the time to pursue each and see which provides a little relief as your freight costs continue to climb.
Always verify pallets will be filled to the trailer roof before approving orders.
o Start looking for a new supplier if your current wholesale item vendor is unwilling to properly stack merchandise on pallets until they are filled to the top. Do not accept freight damage as the result to expect. If done properly, damage should not occur. Sure, there may be an exception from time to time. However that happens even with partially filled pallets.
o Create a backup list of lower cost impulse and hot-selling wholesale items your supplier can add to totally fill pallets before shipping.
o You can also add bulky, more expensive consumables such as paper products to round out pallets. Using this tactic you are filling space you would have left empty with the in-demand, expensive-to-ship wholesale items you need.
Negotiate freight costs.
o Ask for wholesale dollar merchandise supplier help to cut freight costs. A flat fee, freight cap or even a better price are all acceptable outcomes.
o Seek the services and an agreement with a freight forwarder. You may be fortunate and locate a freight forwarder who can locate an empty truck following exactly the path you are hoping to have followed. At other times they can negotiate for truck hauling space for you.
Implement dollar-cost-averaging
o If you implement the practice of dollar-cost-averaging and focus on filling with lower-cost wholesale items you may actually be able to reduce the per item cost of the wholesale dollar merchandise on the pallet as a great side benefit. If this practice is followed without fail, you will be able to see an impact on your monthly cost-of-goods-sold. Of course, it is important to be careful not to add items which will not sell simply to save a few cents in COGS for you store.
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