Point of purchase fees can prove tricky - know the facts
Have you ever sat down and looked at all of the costs that go into putting together a point of purchase promotional kit? Most people look at the obvious things, but fail to look at the total cost. Understanding these costs will help you make better buying decisions and save you money.
Here is a list of things to think about when considering total cost of your point of purchase kit.
- Over producing – it is sort of a rule that companies over produce to compensate for damages either in shipment or after the item is in store.
- Now that you have over produced you will pay a storage fee for the overs. Your inventory will most likely be held at least 6 months at which time it will be dumped and you will be charged a dumping fee. Fees vary from place to place so be sure you are aware of what they are.
- Shipping fees – this is where you may be spending a ton. Parts that are in the final box that is shipped may have come from 2, 3 or more vendors, each of those vendors charge shipping and potentially a handling fee to get it to the fulfillment and distribution point.
- The final assembly point will charge you either a kit fee, or a picking charge for each SKU in the box, plus a box fee.
- Shipment to the final location - box size, box weight and speed of delivery all play a major role in what your final cost will be.
- Larger items that cannot be rolled up, or folded will cost you extra in shipping.
- Your staff time - before and after a promotion your staff can spend hours on the phone, answering emails and following up on issues.
For a more information on streamlining the POP promotional process, please download our whitepaper.
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