CompaniesBy now, you may have heard how the direct selling channel is the place to be when the economy is down.
You have an idea that you have been kickin’ around for awhile, but how do you know if your product is good for direct sales?
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Vendor inbound freight costs are often viewed as an insignificant part of overall inventory costs. However, in many companies, inbound freight expense can be as high as 4% or more of gross sales.
For example, a company with $20 million in annual sales may spend up to $800,000 on inbound freight charges. If this company reduced its inbound freight expense by 20%, its operational expenses would be reduced by $160,000.
Profits grow from increased sales or from decreased costs.
