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A recent informal survey conducted by Channel Marketing Group, Raleigh, NC, revealed that leading distributors, in response to recent fuel increases, are passing on costs to their customers.
The respondents responded that 47% were recouping some of their increased fuel costs and another 17.6% responded they would like to but either didn't know how or were concerned about the competitive response.
The most frequently methods for reducing their expenses included:
Based on interviews, distributors are most commonly charging fuel/service surcharges of $3.00-$5.00/order.
While not intended to be definitive research of distributor practices, the survey did confirm the belief that distributors, faced with increasing costs and ever-present margin challenges, need to review their existing practices to improve profitability. More information at www.channelmkt.com.