| In Part I of this article, we identified the three expense | | | | perfect shape. They employ the latest in route |
| groups that make up our direct costs for home | | | | optimization keeping your deliveries efficient while |
| deliveries. We looked at our Labor Cost, Operational | | | | saving you valuable time and resources. Once your |
| Cost and our Vehicle Cost. We often see home | | | | product is on the truck, the liability then falls on the |
| furnishings retailers make the mistake of thinking their | | | | carrier. A smudge, a rip or any other damage found by |
| only cost to delivery merchandise to the customer's | | | | the customer is now repaired or replaced by your |
| home is the gas and an hourly wage of one or two | | | | delivery company, saving you thousands in operational |
| guys. This couldn't be farther from the truth. In order to | | | | expenses and any potential repairs to damaged |
| improve our bottom line and increase profitability, it is | | | | property. |
| critical that we address the direct costs listed in Part I | | | | What about Vehicle Cost? |
| and possibly eliminate some of those direct costs if at | | | | Most top rated delivery companies operate late model |
| all possible. | | | | vehicles that reflect the standard of excellence their |
| So what's the solution? | | | | clients require. Imagine how nice it would be if you didn't |
| Now that we've taken a closer look at our true | | | | have to worry about insurance, registration, DOT |
| delivery cost, it's easy to understand why so many | | | | requirements or breakdowns. When utilizing a third |
| retailers are now contracting their deliveries to a third | | | | party delivery company, those liabilities fall on them and |
| party delivery company. As seen in dozens of articles | | | | in the case of any breakdowns, they provide a |
| at furninfo.com, many retailers are finding that | | | | replacement vehicle immediately at no cost to you. |
| contracting their deliveries to a third party delivery | | | | Retailers that outsource their deliveries enjoy worry |
| company allows them to better control their costs, | | | | free vehicles they can count on, they never having to |
| minimize their liabilities and offer superior customer | | | | purchase another vehicle again, or worry about their |
| service throughout the entire customer's experience. | | | | depreciation. Your third party delivery company is |
| What happens to your Labor Cost? | | | | taking care of the delivery trucks that service you all |
| When contracting out your deliveries, your labor dollars | | | | year long, but you're only paying for deliveries when |
| are allocated to the specific needs or your store and | | | | you need them. |
| your employees can now focus on productivity and | | | | So, when calculating the true cost of your deliveries |
| sales. Many third party delivery companies will even | | | | don't just look at the tip of the iceberg, but also your |
| promote your brand and do an excellent job | | | | costs that float just below the surface and often times |
| representing your store; however you aren't liable to | | | | out of sight. The true cost of home delivery consumes |
| pay their wages, taxes or benefits. Employee | | | | your time and includes unnecessary headaches. |
| absenteeism will no longer affect you. And don't worry | | | | Remember the cost of a simple oil change and don't |
| about vacation pay, sick pay or holiday pay; you're not | | | | let the cost of small details slip away from you. |
| going to pay for that either. | | | | Consider hiring a third party delivery company and |
| What about Operational Cost? | | | | leave deliveries to the delivery experts so your |
| Professional delivery companies are experts at what | | | | employees can focus on what they do best-sell |
| they do. They are trained to carefully carry out each | | | | furniture! |
| delivery with the utmost care, keeping your product in | | | | |