DealersEdge Professional Forums

We are having a problem with our freight account - 33F always being in the red. I am wondering how others are covering the freight
costs and how to keep freight in the black. Thinking about charging a flat fee on every invoice and RO or should we charge a percentage
markup on transactions where freight is involved? Thoughts???

I bump freight a couple of bucks on COD OVN orders (repair orders or over the counter).
It covers your butt when you have to eat the freight once in awhile.

TimK wrote:I bump freight a couple of bucks on COD OVN orders (repair orders or over the counter).
It covers your butt when you have to eat the freight once in awhile.

Same here we also add $1.00 to all outgoing ups.

On incoming OVN charges... we charge pretty much exactly what GM charges, usually rounding up a few dollars. You can find that amount on the electronic packing slip.

On outgoing frght charges... we use FedEx only, and charge about 20-30% extra, or even more to cover the actual FedEx amount, plus shipping supplies and man-power. We do not have a daily pick-up from them, but we have a FedEx store a few miles away.

Source acct'g... we use dealertrack's source acct'g to make certain the dollars charged on the RO or on the parts invoice go to 33F. part number FRGHT is in a different stocking group (or what everyone else calls a "source") that goes to 33F.

FedEx invoices and statements... make certain that the parts dept is NOT paying for other departments' frght. Some (or many) GMs or GSMs have the habit of putting ALL overnight charges into the parts bucket, instead of their own bucket.

We hover right around breaking even, with a small credit balance expected...

~ gt

Yes, watch out for all those titles shipped back and forth and that parts is not footing the bill for those. Seen that often

Thank you all for the feedback so far!