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Jellis

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Reply with quote  #1 
can anyone tell me if they are seeing set delivery fees tied to invoices from FS distributors? If so what are the amounts ranging?
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northernms

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Reply with quote  #2 
Sysco $5
Reinhart $6.99
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Jellis

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Reply with quote  #3 
any idea of what they base the charge off of?
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texaspeddler

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Reply with quote  #4 
Sysco must be the same across the country.  Its $5.00 down South as well.  It can be removed if its a deal breaker.
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MagicChef

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Reply with quote  #5 
My question is: Is the delivery charge a fee which benefits the company only or does the sales person get any GP benefit from the charge?
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ISellLettuce

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Reply with quote  #6 
Most of the set ($5-7) delivery charges that you see on invoices now are fuel related. When gas / diesel was through the roof a handful of years ago, most every distributor started to tack on these charges to offset the rising costs. When diesel dropped back to a reasonable amount a few years ago, some companies took them off in good faith, while many still left them on. I know my company doesn't charge any fuel surcharges currently, but we do have a sliding scale base on EIA On Highway diesel prices if prices were to ever get up there again.

And to MagicChef- no....I've never seen these charges become GP or commission related 
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MagicChef

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Reply with quote  #7 
ISellLettuce -

We had $5 a long while ago as a delivery fee Years back when the gas was at the super high point but only had that for like 4 months at that time

Then they took it off and left it as an option

The option now to put it on as a rep like keying in an item and for us it is 100% to our commission if we choose to key it

I was just wondering if any of the other companies were letting their reps have a piece
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northernms

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Reply with quote  #8 
The delivery charge is a hot bottom for some people. 

Rightfully so, as gas prices are down. On the other hand it a major source of revenue to just take away. Any account that has it removed will likely have that $5 snuck in there some other way. 
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Investigator

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Reply with quote  #9 
Quote:
Originally Posted by northernms
The delivery charge is a hot bottom for some people. 

Rightfully so, as gas prices are down. On the other hand it a major source of revenue to just take away. Any account that has it removed will likely have that $5 snuck in there some other way. 


As a female sales rep do you see anything wrong with a "hot bottom"?
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ISellLettuce

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Reply with quote  #10 
Quote:
Originally Posted by MagicChef
ISellLettuce - We had $5 a long while ago as a delivery fee Years back when the gas was at the super high point but only had that for like 4 months at that time Then they took it off and left it as an option The option now to put it on as a rep like keying in an item and for us it is 100% to our commission if we choose to key it I was just wondering if any of the other companies were letting their reps have a piece


Interesting...that is the first I have heard about something like that.

It almost seems silly to even have it as an option. What's the point? Add $5 profit somewhere...
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MagicChef

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Reply with quote  #11 
Well ISellLettuce, I think it's a pretty cool option. #1 is it's a full $5 towards GP with no split so that's pretty enticing. #2 you know how it's usually the $600 accounts are the ones that that scour their bills, beat u up for a nickel, and run sales people around. It's not usually the larger accounts. I use it with discretion, only to the ones that really should have it, but I cannot speak for all sales people.
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ISellLettuce

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Reply with quote  #12 
Quote:
Originally Posted by MagicChef
Well ISellLettuce, I think it's a pretty cool option. #1 is it's a full $5 towards GP with no split so that's pretty enticing. #2 you know how it's usually the $600 accounts are the ones that that scour their bills, beat u up for a nickel, and run sales people around. It's not usually the larger accounts. I use it with discretion, only to the ones that really should have it, but I cannot speak for all sales people.


Don't get me wrong, I think if you can add $5 straight GP somewhere with a delivery charge line item, more power to you. Especially for those smaller accounts that run you around. I have known distributors to charge "under minimum" fees for say...an account that places less than a $600 order. I've heard of using a case threshold as well. Either you place enough of an order to the minimum or you get a accessed an (optional) delivery fee of $15-$25. Sounds like you use this $5 fee in kind of the same manner, only perhaps without specific parameters. Either way, good on you...
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chefblue

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Reply with quote  #13 
Gas may have gone down, although recently going back up, but remember, the trucks run on diesel, which has not gone down the way gasoline has.
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wilsontennis

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Reply with quote  #14 
I have not been on the distribution side of this industry for decades.  But, are we/you reaching a point where fees are part of the bargain? 

I'm just thinking of when "online banking" was in development.  One would receive all the enticements in the world to move to "paperless and online/etc."  Then, that space started to mature and the very banks which offered a discount to not come into a branch started applying "convenience fees" for not doing so.

I don't have an issue with fee, per say, but some of this could be handled with a well thought out conversation of the business relationship.  I remember the days when "prime vendor" 1st came out.  It was reserved for the really big drop customers.  Now, with all the access to data, even failing sub shops can claim a "prime vendor" who treats them well.  I saw the figure earlier - $600/order.  When that account can act expect the same as a $5,000 drop, there is an issue and it should be addressed.....

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chefblue

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Reply with quote  #15 
wilsontennis....I concur. It is sad to see distribution companies so readily change from traditions of relationship driven sales and consulting in favor of the technology "crack" that is online and on-tablet and on-phone driven sales being mandated by someone who read a position paper that indicated people who order online might order more. Might be OK for techno-savvy newbies to the hospitality industry, but the truly successful operators find a knowledgeable and trustworthy sales rep who truly works for them and protects their business (granted it is a little selfish - if I can drive my customers sales then I can participate in their success by virtue of selling them more product to meet increased demand). Too many operators today worry about shrinking their invoices and not enough about growing their bank deposits.
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