by Will Schneider
Looking at a pricing proposal from a warehousing and fulfillment vendor is akin to browsing the statutes of a typical homeowners association. Although it may be a good solution for sleep troubles, reviewing the pricing proposals of warehousing and fulfillment companies should be done with great care and diligence. Below are some tips to help avoid some of the challenges of warehousing and fulfillment pricing.
- Make sure that the warehousing and fulfillment vendor has listed ALL costs
- Beware of monthly minimum charges
- Ask for volume discounts that are available for higher volume order processing and storage
- Determine all monthly fixed recurring charges
- Ask if the handling charges can be rolled into your product costs and make sure that you are comfortable with the resulting net profit
- Ask if the vendor makes margin on freight
- Ask for referrals from current customers to make sure that costs don’t change after sign up
- Check the vendor’s BBB rating
- Make sure that everything is documented in a contract
Taking a few precautions when looking at warehousing and fulfillment proposals can help in avoiding unncecessary troubles, and can lead to a long-term agreement that works for both sides.