misc Selling by Pallet

hotsauce4good

hotsauce4good

Hi THP. I've been asked to provide some pallet pricing for a smallish (60 store) retail chain. They want to get pallet pricing (1 pallet, 2-4 pallets, 5-10 pallets). This would be the first time I would be selling by the pallet so I have a couple of questions that I hope y'all can maybe assist with:
 
1. How may cases would a pallet consist of for retail sale? I have seen 60 cases (about 2 cases tall x 30) in a couple places but I have also seen 150 cases (5 x 30). 
 
2. Does pricing to a supermarket chain include the cost of delivery to their warehouse? (I would think it does, but not sure).
 
3. Looking for advice on variety - should a pallet consist of all the same flavor or would it make sense to have multiple flavors on one pallet?
 
Thank you much!
 
Bob Ferretti
Chief Cook & Bottle Washer
Hot Sauce 4 Good
 
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1 - I've never pallet pricing on 60 cases. I've seen companies offer pallet pricing on quantities of 100 (most common), 150, 165, and 200 cases, it varies a lot depending on the company. 
 
2 - I wouldn't assume you're giving them free shipping to their warehouse off the bat. I'd suggest giving them your pricing not including freight, and then if they insist on free shipping you could throw it in if it got the deal done. Also, they may have freight accounts with significant discounts, or even their own trucks, so the price they would pay for delivery may be lower than what you'd pay. 
 
3 - Every company I've spoken to about pallet pricing has been open to mixed pallets, I think that's pretty standard.
 
Good luck! Post back with your results!
 
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hotsauce4good,
 
Welcome to THP!  I think a pallet is whatever you put on it.  Ask the customer how much they need and if it's more than 10 cases it may be cheaper to ship on a pallet. Otherwise, you can define a pallet as your minimum batch from your co-packer.  If your co-packer requires 150 cases minimum then they can ship 150 direct to your customer.  But really, you just need to know exactly how much they want to order and then make it happen.
 
Here are some freight companies my co-packer provided to me a few weeks ago:
I got a reasonable quote from FreightPros for 50 cases.
 
Edit:
Also, I wouldn't put more than 250 cases on a standard 48inx48in pallet.  If it's not wrapped well enough it can fall apart in transport.
 
Ken
 
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Shipping by pallet is very nice because its easy and cheap! I ship from 30 to 200 cases on a pallet and it cost around 130$ CA for 500km! I used to make the trip with my Ford Escape! No way I will do this again, truck devilry is the way!
 
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PepperDaddy said:
hotsauce4good,
 
Welcome to THP!  I think a pallet is whatever you put on it.  Ask the customer how much they need and if it's more than 10 cases it may be cheaper to ship on a pallet. Otherwise, you can define a pallet as your minimum batch from your co-packer.  If your co-packer requires 150 cases minimum then they can ship 150 direct to your customer.  But really, you just need to know exactly how much they want to order and then make it happen.
 
Here are some freight companies my co-packer provided to me a few weeks ago:
I got a reasonable quote from FreightPros for 50 cases.
 
Edit:
Also, I wouldn't put more than 250 cases on a standard 48inx48in pallet.  If it's not wrapped well enough it can fall apart in transport.
 
Ken
Click to expand...
One of the popular standard pallet size 48" x 40". You can plan on using 95% of that space. I would recommend leaving 1" from the edges back to the product. You definitely don't want any boxes overhanging the pallet. Also, due to the weight I would stretch wrap AND band the product to the pallet. You have too much invested to risk the product shifting in transit and getting damaged.
I have used freightquote before and they are a good company with decent pricing. You can get a list of carriers from them with a decent discount. Once you get that list pick a few of the carriers and call them direct. Ask to meet and see if they will set up a discount program. Even if you only ship a few pallets a month, they will give you something. Reps are always looking to get new business.
You also might want to check in with FedEx. I have a program set up at my main job where they combine my pallet freight and parcel freight to give me a combined discount to cover all of my shipping. This covers Ground, Air and LTL Freight.
 
Good luck!! 
 
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