It is a mission critical objective that often fails the test: meeting your customers' needs and keeping your promises with scheduled deliveries. Whether you have a one-time delivery to make on a promised date or a bank deposit that has to happen every day at the same time, fulfilling your scheduled delivery San Bernardino on time are a part of your business that matter.
Every home furnishings retailer wants to improve their bottom line and increase profitability, however, there's a significant hole in your wallet that's eating up your profits with every delivery. In all cases, your cost to deliver goes well beyond a tank of gas and the hourly wage of a couple of employees. To begin, you must identify and control your costs in three major areas as it relates to your deliveries; Labor Costs, Operational Costs, and Vehicle Costs.
There are many factors to consider when it comes to the size of the vehicle. As said above it depends on the product you are delivering and the service you provide, but that's not all. The cost of fuel is a large factor in what you use to deliver. If you are charging $35.00 for distribution to a household and the location of the distribution is on the other side of town, it does not make sense for you to pay $20.00 for gas, take 2 hours of your time and work for $7.50 hour.
There are overhead and maintenance costs to consider. You just lost money. But if you can make the distribution pay by distribution to 4 or 5 locations on the way, then look at the profit. The size of the vehicle then needs to be larger than a car or small SUV, or you have no room to haul the cargo. The product you are delivering may be products from the local hardware or lumber yard in which case you will need a pickup or truck to make the distribution.
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.
Also overlooked are service issues and how expensive they are to resolve. From missing product to damaged product, studies show that your typical exchange can cost up to 5x the original delivery cost and all too often, these costs exceed the margin or even the total cost of the item. Also, there are costs associated with unnecessary customer agitation, future lost business, and negative word of mouth advertising.
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.
Every home furnishings retailer wants to improve their bottom line and increase profitability, however, there's a significant hole in your wallet that's eating up your profits with every delivery. In all cases, your cost to deliver goes well beyond a tank of gas and the hourly wage of a couple of employees. To begin, you must identify and control your costs in three major areas as it relates to your deliveries; Labor Costs, Operational Costs, and Vehicle Costs.
There are many factors to consider when it comes to the size of the vehicle. As said above it depends on the product you are delivering and the service you provide, but that's not all. The cost of fuel is a large factor in what you use to deliver. If you are charging $35.00 for distribution to a household and the location of the distribution is on the other side of town, it does not make sense for you to pay $20.00 for gas, take 2 hours of your time and work for $7.50 hour.
There are overhead and maintenance costs to consider. You just lost money. But if you can make the distribution pay by distribution to 4 or 5 locations on the way, then look at the profit. The size of the vehicle then needs to be larger than a car or small SUV, or you have no room to haul the cargo. The product you are delivering may be products from the local hardware or lumber yard in which case you will need a pickup or truck to make the distribution.
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.
Also overlooked are service issues and how expensive they are to resolve. From missing product to damaged product, studies show that your typical exchange can cost up to 5x the original delivery cost and all too often, these costs exceed the margin or even the total cost of the item. Also, there are costs associated with unnecessary customer agitation, future lost business, and negative word of mouth advertising.
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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