A special thank you to Edward Griffin, Senior Vice President/General Manager at Price Davis, and Eric Martin, President at Lodging Kit Co. for their time and insights on all-things freight. In this multi-part blog post, you’ll get tips and tricks on what your dealership should do… and not do when dealing with freight orders and acceptance.
In 2021, trucks moved more than 10 billion tons of freight across America – about 72% of the total domestic tonnage shipped, according to the American Trucking Associations. That’s a lot of goods crisscrossing the nation’s interstates and highways, and the foodservice equipment industry contributed to those numbers with its walk-in coolers, combi ovens, conveyor dishmachines and other products.
Freight is a segment of business that doesn’t get a lot of attention, but it’s a part of every foodservice equipment dealer’s business and can range from 3%-6% of overall sales costs, if not more. While it might not seem glamorous to talk about the details of negotiating freight contracts and the best practices surrounding freight acceptance, for dealers that pay attention to those practices and fine-tune their policies, the attention given to freight can end up making a difference in their bottom line. Read on for eight tips on how you can improve freight efficiencies and costs for your dealership.
1. Practice Smart Ordering Habits
Saving money and improving freight acceptance procedures starts before you even get to the point of negotiating with freight carriers. Paying attention to how you place orders, and the timing of those orders, can play a big part in lowering freight costs and becoming more efficient in shipping processes.
2. Timing is Everything
Getting equipment to a job site is often like putting together pieces of a jigsaw puzzle. You have multiple moving parts to deal with, from availability at the manufacturer’s warehouse to coordinating with the job site’s construction schedule. The freight part is only one piece of the puzzle, but it’s an important one.
When possible, order early to ensure the equipment will be delivered with plenty of time to be installed for a grand opening, but also to save money on shipping….