A while back, I posted this entry – Product Sourcing Myth – Minimum Orders. In it, I said that minimums often are much lower than you might think and make many product lines attractive for a home-based business.
Just beyond the level of Minimum Order is a level by which you can get the product from the supplier with free freight. Sometimes this level is too high for a home-based business. But surprisingly, this level is often very affordable. To give an example, there’s a certain coffee maker we’ve been selling and the minimum order is $250. But a $500 order gets us free freight. This lowers the cost-per-piece and helps add profit right to the bottom line.
Just like the proverbial Free Lunch, there’s really no such thing as “free freight”. Someone has to pay it. But manufacturer suppliers realize that bulk purchases at certain levels will give them enough profit so that they can offer you freight included in the cost. And as in the above example, sometimes that level is surprisingly low.
As with most things, it never hurts to ask! When you are grilling a supplier or supplier rep about minimum orders and other terms-related questions, toss in the question of free freight. You might be surprised with the answer.