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Common Price Leak #3: Expedited Delivery

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April 14, 2020
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amazon expedited shipping This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you Common Price Leak #3: Expedited Delivery. Following along are instructions in the video below:

“Music another one that we frequently find and another one where nthere s a lot lot of value to the end customer. Where we often kind of give it away any kind of expedited ndelivery expedited proccessing. So a customer calls nup. They place an order.

But our normal lead ntime might be two weeks because we have to manufacture it but they need it in three days. We can jump through a lot of hoops. We can interrupt our production cycle. We can insert it we can ndelay other customers and we can pay for the expedited freight and overtime perhaps on nthe weekend to get it done.

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But we often times. Don t nreally get paid for that and it has tremendous nvalue to our customer perhaps they need it so that ntheir line doesn t shut down perhaps they need it to meet a commitment onto their customer. But we went through a lot nof expense and trouble we should get paid for it. Because the value is commensurate first of all there has to nbe a clear understanding of what our standard lead time is it should be communicated nit should be known it should somehow be standard.

So if our standard nlead time is two weeks. The customer needs it in three days first of all i d probably have to check. If i can even do it if i m taking the order nif. I m sitting at the desk.

.


Because i have to talk to nproduction or the warehouse or just to figure out nif. It s even possible and mumbles. The response back. We call the customer back nand.

Respond to them is or a 50 surcharge or 5. Surcharge or whatever. The policy is and when i tell our clients nis. What will happen if we know how many expedites nwe.

.


ve had historically and typically we look at that and we might know that there s a baseline of 100 a month. Let me say probably half of them will go away. When you tell them there s a fee. Which tells you they didn t nreally need it that quickly they just were never told no so it was always easy and free to ask.

And when it s no longer free to ask they decide they can live nwith. The regular lead time that has a great benefit because i didn t disrupt my production to meet a need that wasn t real the other 50 of the time nthey re gonna pay it and gladly pay it because in reality. It s a very small fee nrelative to the need which might be to not nshut their line down or to meet a critical nneed for the customer whatever it is if they nneed it that quick they re gonna be more than nwilling to pay for it and the example. I always tell people is it s christmas eve coming up.

.


And you missed something on your list and you go on amazon are you gonna balk at paying nthe 30 overnight delivery. No absolutely you ll do it because you absolutely have to have it the same thing with a company nwho s ordering your product. If they absolutely have to have it they re more than willing to pay it and they re glad you have the option that you can meet it and nthey re happy to pay it you wanna really improve your price leaks and sustain them over time ideally in some. It system nyou.

ve made it the default that we follow the policy and only with appropriate approval levels can you override that there are reasons to deviate and it s not that every nleak is a bad leak. But it should be a known managed and measured leak with approval and to the extent you can make that the default in the system. You re gonna have a much better success ” ..

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