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MAPP Plastics Discussion Forum

The MAPP Plastic Industry Discussion Forum allows members to rapidly communicate with each other. Post both questions and answers to questions that other MAPP members have about any industry topic from material and process issues to R&E Tax Credits and other business issues.

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Posted:  22 Jul 2008 23:55
Prepaid freight costs to customers are seriously impacting profits.  If you have contracts that stipulate "freight prepaid", are you getting relief from your customers?  If so, how are you doing it?

Dan Cunningham
Posted:  23 Jul 2008 19:36
We are charging a "fuel surcharge" similar to freight bills we receive. To date we have been pretty successful getting our customers to pay it.

Gordon Wright
Posted:  19 Aug 2008 17:02
Since first posting this question, and considering Gordon Wright's reply, we have been highly successful getting customers to accept freight price increases without resorting to a "fuel surcharge formula" or anything else.  Customers have accepted that fuel has increased transportation costs. 

We drafted a short written explanaton using quotes from media sources then did any necessary tailoring to specific customers.  Most customers "bought" the argument immediately; others took a couple of weeks, but accepted it when we did not back down. 

Dan Cunningham
Posted:  25 Aug 2008 18:56
Dan, our parts are all shipped in prepaid and shipped out by customer specifications and hired carriers.

Paul Carnes
Posted:  25 Aug 2008 19:50
Our customers tell us what method of shipping they want for the parts.  If it is prepaid, then "prepaid" means prepaid and add on the invoice.  Most of our customers use their own shipping methods, arrangements they have made with freight carriers, so the shipping is collect.

Martha hedge
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