Laddawn.com : Upcharges

These are the final upcharges, per discussions with Finance concluded 2/7/15.

                                                                    LTL                 Sm. Pkg

006          EXPORT PALLET                       15.00                0.00

105          INSIDE DELIVERY                      60.00               0.00

106          TAILGATE DELIVERY                 50.00               0.00

107          LIFT GATE DELIVERY                50.00               0.00

160          RESIDENTIAL DELIVERY           85.00              .20/LB

161          LIMITED ACCESS DELIVERY    70.00               0.00

Export pallet

Export pallets can be selected during checkout for any LTL bundle, stock or MOD.

Laddawn uses new heat treated pallets for export purposes. We shall refer to these from here on out as "export pallets." If a customer prefers plastic export pallets for a MOD order, it must be quoted as a non-stock in Avante (TBD what is to be done if plastic pallets are requested for stock items).

We have settled on an upcharge of $15 per pallet for new 40 x 48 export pallets.  (See 2/4/15 comment below with email backup for this figure.)

This does not fully account for stock and MOD orders where larger export pallets are required.  Since there are so few orders involving these, Laddawn is not making plans to stock these anytime soon; therefore orders involving larger export pallets will need a longer lead time. The price difference is large enough for these larger pallets that we ought to upcharge more than $14 for them. We decided to hold off on an automated solution until after launch.

We should be careful to adjust this as costs change.  Perhaps a yearly review by purchasing?

Carrier

Data on carrier upcharges

After isolating the upcharges that I think Laddawn knows of in advance– either b/c customer asked for it, or b/c we’ve been hit with it on a prior order, and removing some outliers (“service upgrade” and “customs duties brokerage”),

 – I calculated the weighted average upcharge: $59

There is still a fair amount of variability - standard deviation is $30, and the median is $44. 

Not sure it will make sense to gang them ALL up into one. We probably need a couple of groups or clusters – based either on dollar values or similarities or both.

I’ve already posed some questions to Leo, Tina and Meme – e.g., why does residential cost more - but there are probably some more I need to pose (like what the heck is “arbitrary destination”?)

OUTLIERS (excluded from stats above) - $3212

Customs duties brokerage - 6

Min $83, max $714, avg $246

Service upgrade - 3

Min $468, max $758, avg $578

TOTAL - $3212

ALL THE REST - $6709

Liftgate/Tailgate – 38

Min $20, max $70, avg $41

Limited access delivery - 25

Min $38, max $183, avg $87

Residential delivery – 18

Min $20, max $100, avg $75

Inside delivery - 14

Min $30, max, $117, avg $48

Sort & segregate - 5

Min $31, max $50, avg $45

Restricted city zone - 4

Min $30, max $71, avg $40

Driver unload - 4

Min $31, max $60, avg $42

Arbitrary destination – 3

Min $48 max $125, avg $99

Pallet jack request - 1

$40

Delivery appointment – 1

$48

High cost service area - 1

$30

Oct 30

We definitely want to pass these additional costs on, whether order is prepaid/freight included or prepay and add/freight not included.

The first 3 have standard comments; the last two are now 000 comments.

Decisions needed

• Need to decide what to call these - "special handling charges"?
• Need to decide upon the flat fees for each flat fee upcharge.
• Need to decide how to calculate residential delivery upcharge (and how to present a % upcharge in the checkout screen).