Bulk Edible Oil Blog

5 Quick Tips To Save Money On Shipping Bulk Oil Ingredients

Posted by Hannah Broaddus

Learn how to spend less on shipping

  1. Always ship a full pallet at a time. Freight shipping is more efficient when the pallet is packed to the max, because a pallet will cost the same (or close to the same price) no matter how much or little you put on that pallet. By shipping a full pallet, you will get the lowest shipping cost per pound.
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How Much Does Shipping Bulk Oils Cost?

Posted by Hannah Broaddus

Shipping is a big factor when you’re determining your delivered bulk oil price.

Typically, your supplier will initially give you an FOB cost, which is the price sitting at their facility.  Then your shipping will be a special cost to your address that will be added on to that. Those two factors will give you your delivered oil price, which really the important factor to focus on because it’s the actual money that will be coming out of your pocket.

So how do you figure out your delivered prices, including the cost of shipping? We’ll explain.

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The Difference Between Weight-Based and Flat Pallet Shipping Rates For Bulk Oils

Posted by Hannah Broaddus

Shipping has a big impact on the total delivered cost of your bulk oil ingredients--or any ingredients for that matter. The amount that it costs to have products shipped from your suppliers door to your own gets added to the FOB cost that you were originally quoted. Together, these two factors (FOB cost + shipping cost) make up the total price that you pay.

That being said, it’s very important to understand what makes your freight cost what it is, because it can make or break how competitive your delivered prices are. There’s lots of complex ins and out of the transportation business, but we’re going to focus on the basics. There’s two common different ways that freight costs are calculated: weight based rates or flat pallet rates.

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6 Important Factors That Make Up A Landed Bulk Oil Cost

Posted by Hannah Broaddus

Have you ever tried to buy something, only to realize when you’re 

about to pay that there’s a whole bunch of extra fees that you didn’t know about before?

Like when you join a new gym only to find out that there’s a $50 new member fee.

Or when you buy concert tickets online and there is a $5 “convenience fee” shown at the end of check out.

Or when you sign up for a new cell phone plan, and there’s a list of a bunch fees you’ve never even heard of, listed in small print at the of your contract. To top it off, most of the time you can’t even figure out what you’re supposed to be paying extra for!

These kinds of extra fees and hidden charges still happen all the time, in all different industries. And the customer response is almost always the same: disgruntled compliance.

Most often, we there’s no way around these fees. And it’s not that we don’t want to pay them. We just want to know what they are, outright and in full, before we pull out our credit card to pay. We want to know the final cost that’s going to be charged. Total price, delivered cost, all-in. Common sellers, just be straightforward!

In other words, we all just want to be informed buyers.

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Comparing Buying Bulk Oil In LTL Vs. Full Truckload Orders

Posted by Hannah Broaddus

As a manufacturer, you may debate whether it’s better to receive your ingredients in LTL (Less Than Truckload) shipments, or if it’s better to order a full truckload at a time. This is an important question, because it will affect the total delivered cost of your ingredients.

This discussion will help you compare each option and come to a good conclusion about which you should choose for your business.

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How Shipping with a Freight Carrier Works

Posted by Hannah Broaddus

For bulk shipments that are packed onto a pallet, your order will deliver on a freight truck. If you’re not used to working with a freight carrier, it can take some getting used to the process. Below is a few things that you should know.

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Buy in Full: Full vs. Partial Pallets of Bulk Olive Oil

Posted by Hannah Broaddus

Buying Full vs. Partial Pallets

Always buy your olive oil in full pallets, if possible. When your oil is being shipped with a freight carrier, it is strapped onto a pallet.

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How To Reduce The Shipping Cost of Bulk Olive Oil

Posted by Hannah Broaddus

The Average Cost of Shipping

Transportation costs for bulk olive oil can range anywhere from $75 (across town) to $600 (across the country) per pallet. Think about where your olive oil will be shipping from (also known as the FOB point) when you’re determining a delivered cost.

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How To Choose: Local Distributor vs. National Olive Oil Supplier

Posted by Hannah Broaddus

As you're researching olive oil suppliers, it's important to know that there are a few different types of suppliers that you could choose. Below is a review of the two most common, the local distributor and the national supplier, because these are likely the two that you will be weighing.

Learn about Local and National Olive Oil Suppliers

A local distributor is a supplier that offers olive oil, sometimes among many other ingredients.  

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How To for Manufacturers: Save Money on Olive Oil by Buying “Direct”

Posted by Hannah Broaddus

If you’re a U.S. manufacturer, you’ve probably received your bulk olive oil in one of two ways:

  1. from a U.S.-based company who ships oil to you by the pallet, or

  2. from an overseas supplier who ships oil to you in a full container

There are pros and cons to each of these systems.  

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