“Getting a Freight Quote: The Ultimate Guide
There are plenty of reasons to spend more on freight. The main options are to choose a more reliable carrier, or to include some extra services that might make life easier for you or your customers. However, misquoting is not one of the reasons why paying more for your shipping is a good idea. Read on for more quotes to consider
What to consider before making an offer
1. Understand the cost of materials
A common mistake in calculating material costs is to multiply the cost per pound by the weight of the material. But in sheet metal fabrication, for example, the entire sheet must be ordered to cut the part. Material cost must include extra material not used in a given part. You need a supplier who can explain the available sizes and help you understand the cost of materials, as it also involves the inevitable waste due to project specifications.
2. Determine store prices
The hourly wages your workers receive are only part of the cost of labor. Large work centers will have higher hourly rates than small work centers. In addition to the hourly rate, there are energy costs, equipment usage costs, and required floor space. All of this is aggregated into what we call the “”shop floor rate”” for a particular work center. Make sure you understand the skills required to complete the project in order to determine the correct rate.
3. Estimate the cost
Every manufacturing company has five main overhead areas that take a share of every invoice. They are (in order from most expensive to least expensive);
office salary
health care
sales salary
rent
payroll tax
Most of these can be controlled using a good productivity program. However, sales and rents will always be based on utilization. Your team may have some profit to cover these costs, but make sure you know when and where discounts are available. Not considering these costs, even on small projects, can jeopardize jobs and ultimately damage a company’s bottom line.
4. Terrible shipping tax
Toyota Vice President Taiichi Ohno said he believes that 95 percent of everything Toyota makes is waste. For many sales today, shipping and delivery can be a deal breaker, as customers are often surprised by shipping costs after accepting the sale price. By eliminating shipping waste as much as possible, you’ll remove many of the unpredictable factors in shipping costs and be able to offer your customers lower, more predictable, and fairer prices. At Boyd Metals, we do not charge for shipping or require a minimum amount per order. This can help address these costs from the start of the project.
5. The cost of delay
Even if the project estimate and approval of your bid goes well, you still need to receive raw materials to complete the project on time. As a supplier, we understand that when you ask for an accurate quote for the metal you need, you also need to know if/when the item is approved if stock exists. This critical step is where our customers experience what we call the “”Boyd Difference.”” We make stocking decisions locally to best serve our customers.
Knowing these basic “”talking points”” will help you set appropriate expectations for your clients and give you the time and steps to prepare an accurate estimate the first time. Helping customers understand what they are getting and what they are paying for will help build trust. This trust builds loyalty and keeps them coming back for project after project.
what not to do when quoting
No need to request unnecessary services. For example, request that an entire truck can transport a large amount of cargo, or fragile and valuable items that need to be moved quickly. However, booking an entire truck to carry a few standard pallets is a great way to waste money.
Applying for a tailgate for a pickup or delivery location with a dock is another surefire way to throw money at it.
Picking a random shipping class (only for shipments to, from, or within the U.S.) is guaranteed to make your shipping experience worse. If you choose a higher tier, you’re just giving away money, if you choose a lower tier, you’re giving away money once the carrier reclassifies your shipment.
Also, avoid treating any old location as standard business. Limited access locations are real and you don’t want to ignore them.”
