In the bulk edible oil industry, the biggest mistake we see manufacturers’ making is purchasing 1-2 drums of olive oil at a time, instead of ordering full pallets of 4 drums.
For some buyers, it is a no-brainer always buy full pallets, but others choose to simply buy what they need at the moment.
Here’s Why They’re Losing Money By Ordering Only 1 Drum:
Shipping often costs the same for one drum as it does for a full pallet of four. When you ship with a freight carrier, a drum is strapped to a pallet and the pallet is loaded into the truck. Whether you pack 4 drums on that pallet, or just put one, the pallet itself still takes up the same 48” x 48” space in the truck. Therefore, freight carriers charge a similar cost no matter how much you put on that pallet.
Sometimes you will see a slight difference in price, but it is not proportional. By this I mean, if you ship a pallet of four, it will often be $250-$350. If you ship 1 drum to the same address it will likely be $200-$275 for the one drum-- but not 1/4 of the full pallet price.
No matter how you look at it, you spend much more on shipping when you buy a single drum at a time. Instead of ordering just what you may need at the moment, plan ahead and order a full pallet if you can use it up within 6-8 months.
Want help looking at the rest of your bulk oil buying decisions? Download The Ultimate Guide To Buying Olive Oil For Manufacturing eBook.
Topics: Packaging, Small Businesses Advice