Are you still requesting quotes with “free” shipping? It may sound enticing, but in the world of wholesale, where every penny counts, there’s no such thing as truly free shipping. Here’s the scoop: when shipping costs are bundled, you may end up paying more. By requesting a breakdown of product cost and shipping separately, you open the door to more options for saving.
Why is separating costs a smart move? When shipping is hidden in the overall cost, it prevents you from comparing freight options. If you already have accounts with LTL carriers, for instance, you might be able to negotiate lower rates, leaving more room in your budget. By controlling your shipping costs, you gain flexibility to shop for the best rates and avoid paying extra for bundled shipping you may not need.
Understanding your landed cost—how much your product truly costs once it arrives in your warehouse—empowers you to make better pricing decisions and improve your margins. One clear, bundled cost may seem convenient, but when shipping is broken out, you get a true view of the expenses and can look for ways to improve your bottom line.
So next time, take control: ask your supplier to itemize the product and shipping costs separately. It’s a simple shift that can help you build better margins and avoid leaving money on the table.