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03-12-2010 06:42 AM #21GOLD MEMBER
- James Knecht
- Supplier (Owner)
- The Dooley Co. Inc.
- Olive Branch, MS
- Join Date
- May 2005
- Posts
- 4,596
Re: Paying to much in supplier shipping charges??
Tom, I agree & think that is one thing that separates the good suppliers from the bad. However the discussion is dealing with the concept that anything written on a PO becomes part of a legally binding contract. I say it doesn't & that still impacts companies like ours & yours. I'm sure you have seen some of these POs that have the back side completely filled with jargon, in a tiny font. They are trying to handle every possible contingency. Sorry, but I'm not going to hire a lawyer to approve such a PO. Also, we need protection for when our employees miss something. Say the PO lists handling charge but shows it at no charge. Does that mean we have to clarify that, assuming the supplier has such a charge? Was that a typo, a function of the software that created the PO, or was it an attempt to supersede the supplier's policy? So IMO, it is important for all of us to understand this concept of contract law. It is important to know if any statement on a PO can override a supplier's stated policy.
Funny thing is, how can a distributor think their PO is a contact, which to some extent it is, yet fail to understand that a supplier's written policy is likewise a contact? What is the difference? So where there is mutual agreement, where we all agree that we will be printing the specified part, in the specified color, printed in the specified color & shipped how & when specified, then yes that is a contract. However when our policy is in disagreement with a statement on the PO, such as say charging for a setup or charging for handling, then there is no agreement on that point & that point is not part of any contract. Yes, a good supplier will call to get all this straightened out, however IMO, I feel when there is no agreement, the supplier's policy takes precedence... for the simple reason the distributor chose to use this vendor.
Tom, you have a legal expert that can shed light on this aspect of contract law? My son is a lawyer but not experienced enough for me to feel confident in asking him.
Last edited by jimknecht; 03-12-2010 at 06:52 AM.
Jim Knecht - President - The Dooley Co. Inc.ASI 50410 - UPIC DOOLEY - SAGE 5092024 hour service @ no extra charge
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03-12-2010 08:08 AM #22Regular Member
- Roy Hill
- Distributor (Owner)
- IMS Promotional Products
- Ocoee, FL
- Join Date
- Aug 2005
- Posts
- 309
Re: Paying to much in supplier shipping charges??
This probably should be it's own thread but since this thread has taken a little detour from shipping charges to legal contracts I think it fits:
Along the same theme where Mike's POs differ with suppliers written policy concerning shipping charges, what about a PO stating that no overruns will be paid for but the suppliers policy states 3-7% over/under is acceptable and will bill accordingly? Personally I've had more problems with this than shipping charges. I think the supplier wins as I accepted to do business with them.
I strongly believe nobody should dictate how one runs his own business, but I also believe that a company needs to listen to it's client's wants & needs. If the core of a company's clients make it known certain policies are no longer "acceptable" (be it shipping charges, overruns, self branded boxes or ??)
then the company needs to decide whether to continue as is and risk losing a lot of clients or change and hopefully retain and gain clients.
I doubt which holds more legal weight (PO vs written policy) will come into play in the real world as no one is going to court over $50-$100 or so in "over" charges. When a problem arises over shipping charges or anything else and it can't be reasonably taken care of than the distributor decides whether or not to continue buying from that supplier or the supplier can decide whether or not to keep accepting POs from that distributor. - Roy
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03-12-2010 09:09 AM #23Regular Member
- Rose Cunningham
- Supplier (Asst. Director)
- Anaconda Sports
- Lake Katrine, NY
- Join Date
- Dec 2008
- Posts
- 349
Re: Paying to much in supplier shipping charges??
Hi All,
This topic is cropping up all over the place these days. From where I sit the contract and shipping issue seem to have much to do with the PPD becoming a do all for their customer and putting this all on the supplier.
1. You get a quote and send a p.o. to me. Now your p.o. tells me to send 10 pcs to this address 24 pcs to this address and the rest to you. Ues this Fed-Ex number.
Answer: Yes, you are purchasing product but you never told me that I will be packing my product other than my normal method - you would be shipping to multiple addresses and using your Fed-Ex shipper number.
The quote I gave you or you saw in my catalog is for x amount of pieces shipping in my specific cartons to one address. This is how suppliers build their pricing.
Who is going to pay for the extra time to sort the product - package according to your instructions, make multiple shipping labels then call Fed-Ex to pick up pay their $10.00 pick-up fee and fill out their paperwork by hand because I do not use Fed-Ex.
You have just put a huge kink in my cog.
Now here comes Chris...... I do not write my policies in my catalog because I like to use Word..... I have my business set up a certain way for my own reasons and when you want me to stop the show and follow your business model it costs me money. I'll say it here like I've said it in another thread and got beat up for:
I have policies - if you would like me to explaiin why to you, please call me, I'll explain. Bottom line is Business 101- if you would like to purchase goods from a company abide by their policies or make a call to see if you can do things another way and what charges may be incurred in doing so. Don't expect me to pick-up your p.o. and say STOP the works Joe Blow wants me to do it this way, so I will interupt the flow of my organization to sell these $200.00 worth of goods.....
I have had so many p.o. come across my desk lately that say - p.o. must be followed exactly or you will incurr a $$$ fee. Or you will not pay freight if you do not use our shipper number. Or you give me an in hands date that is impossible to meet. I do my due dillagence and call you back, tell you your p.o. needs to be correct or - your a/p will not pay the invoice - your p.o. says I will incurr a $$$penalty if i do not completely follow your p.o. but you are not following my quote and time parameters that we agreed to earlier.... Then I get well just go ahead and change the p.o.. -you get p.o.'ed if I ask you to revise and resend - and if you don't get what you want you tell me -you accepted the p.o. that's a contract....
Well I need a correct p.o. that goes along with my quote- trust me all info you need will be given in an e-mail quote for you to fill out your p.o. properly. I have gone down this road one too many times....p.o.'s will have the correct info on them or we will not do the work....
As for the carton and shipping charges.
1. Anything out of the norn should be paid for by the PPD requesting extra service. PLEASE make a call - do not assume that suppliers will do this because that is what you want them to do.
2. Not every supplier is set-up with the "industry discount" from UPS and Fed-Ex. Do not assume what shipping and handeling should be. Get a quote if you need from a suplier.
need coffee.....R
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03-12-2010 09:50 AM #24Regular Member
- Roy Hill
- Distributor (Owner)
- IMS Promotional Products
- Ocoee, FL
- Join Date
- Aug 2005
- Posts
- 309
Re: Paying to much in supplier shipping charges??
Rose, I think a little Bailey's in the coffee might even be better. . . now take a deep breath and exhale slooooooowly
.
I'd have to side with you and the suppliers on this one. While I think standard packing & handling should be built into the cost of the item, drop shipments to more than one address certainly should be an added cost. As you spelled out there are additional steps taken which results in additional costs to you. Now why some suppliers charge around $5 per add'l address and others $15 or more is a puzzlement.
I always get a shipping est and if the actual charges are close I am good.
I truly hope that the % of PPDs that send in "bad" POs are in the minority and that most of us don't change the rules in midstream by adding more address' or what have you and try to dictate to you how to run your business.
Now about that coffee and Bailey's - have a good weekend!
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03-12-2010 09:52 AM #25
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03-12-2010 09:58 AM #26Regular Member
- Rose Cunningham
- Supplier (Asst. Director)
- Anaconda Sports
- Lake Katrine, NY
- Join Date
- Dec 2008
- Posts
- 349
Re: Paying to much in supplier shipping charges??
Roy...
be back in just a few.....Bailey's is sounding great.....but I digress...always!....
You would be supprise what has been the norm to come across my desk. It sure seems like the volume of these types of things is increasing. Could have something to do with the abundance of newbie in the industry just not understanding the norm of doing busines.......
At least my husband does not have to listen to my rambelings ...you guy's got them today...
I love you too Allen!
R
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03-12-2010 10:13 AM #27New Member
- Louis
- Supplier (VP Sales)
- Cooler Graphics
- Channelview, Tx
- Join Date
- Aug 2005
- Posts
- 244
Re: Paying to much in supplier shipping charges??
Rose nailed this one
Distributors need to understand we receive thousands of PO's each year. We cannot have a different set of policies for each PO.
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03-12-2010 12:20 PM #28
Re: Paying to much in supplier shipping charges??
Very well-written Rose!
I think many of the same distributors who would like to set their own policies via PO would be quite upset if their clients attempted the same. We've all read the threads where a client asks a distributor for a quote, then suddenly changes the delivery date, or asks for multiple ship-tos, or wants some other additional services.
The best relationships are where we are trying to make it work for all involved.
With aloha,
Isa
Isa Cocallas
3Koi - Your partners in creative promotions
www.3koi.com
"Laughter is an instant vacation" Milton Berle
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03-12-2010 12:28 PM #29GOLD MEMBER
- James Knecht
- Supplier (Owner)
- The Dooley Co. Inc.
- Olive Branch, MS
- Join Date
- May 2005
- Posts
- 4,596
Re: Paying to much in supplier shipping charges??
Jim Knecht - President - The Dooley Co. Inc.ASI 50410 - UPIC DOOLEY - SAGE 5092024 hour service @ no extra charge
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03-12-2010 12:35 PM #30Regular Member
- Rose Cunningham
- Supplier (Asst. Director)
- Anaconda Sports
- Lake Katrine, NY
- Join Date
- Dec 2008
- Posts
- 349
Re: Paying to much in supplier shipping charges??
Jim, I thought you would be in the middle of that other triangle by now....
Bye the bye, what kind of apples did you just put in? How long before they produce?
R
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03-12-2010 12:43 PM #31GOLD MEMBER
- James Knecht
- Supplier (Owner)
- The Dooley Co. Inc.
- Olive Branch, MS
- Join Date
- May 2005
- Posts
- 4,596
Re: Paying to much in supplier shipping charges??
Jim Knecht - President - The Dooley Co. Inc.ASI 50410 - UPIC DOOLEY - SAGE 5092024 hour service @ no extra charge
-
03-12-2010 12:44 PM #32Regular Member
- kay gereghty
- Distributor (Owner)
- a-1 promotions, inc.
- gainesville, ga
- Join Date
- Aug 2005
- Posts
- 332
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03-12-2010 12:44 PM #33Regular Member
- Roy Hill
- Distributor (Owner)
- IMS Promotional Products
- Ocoee, FL
- Join Date
- Aug 2005
- Posts
- 309
Re: Paying to much in supplier shipping charges??
Just how many triangles is Jim involved In?
And I guess by his other posts they could be "horse apples"
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03-12-2010 12:48 PM #34GOLD MEMBER
- James Knecht
- Supplier (Owner)
- The Dooley Co. Inc.
- Olive Branch, MS
- Join Date
- May 2005
- Posts
- 4,596
Re: Paying to much in supplier shipping charges??
Jim Knecht - President - The Dooley Co. Inc.ASI 50410 - UPIC DOOLEY - SAGE 5092024 hour service @ no extra charge
-
03-12-2010 12:53 PM #35Regular Member
- kay gereghty
- Distributor (Owner)
- a-1 promotions, inc.
- gainesville, ga
- Join Date
- Aug 2005
- Posts
- 332
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03-12-2010 12:57 PM #36New Member
- Katherine Hughes
- Supplier (Marketing Coordinator)
- Carlson Craft, Social
- North Mankato, MN
- Join Date
- Apr 2006
- Posts
- 198
Re: Paying to much in supplier shipping charges??
Jim,
I think Roy was talking about "road apples", another thing entirely.
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03-12-2010 01:05 PM #37
Re: Paying to much in supplier shipping charges??
It all depends on your state taxes.
Hawaii charges General Excise tax on everything.
California charges tax on shipping if you don't use a 3rd party shipper, don't put it as a separate line item, and/or mark it up. So if you don't want to charge/pay CA sales tax on shipping you must comply with all the guidelines, which seem to get longer every year. Technically I think you only pay taxes on the portion you mark it up (profit and handling), but then that gets complex on the invoice so many just tax the whole thing.
With aloha,
Isa
Isa Cocallas
3Koi - Your partners in creative promotions
www.3koi.com
"Laughter is an instant vacation" Milton Berle
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03-12-2010 01:06 PM #38
Re: Paying to much in supplier shipping charges??
With aloha,
Isa
Isa Cocallas
3Koi - Your partners in creative promotions
www.3koi.com
"Laughter is an instant vacation" Milton Berle
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03-12-2010 01:10 PM #39Regular Member
- Rose Cunningham
- Supplier (Asst. Director)
- Anaconda Sports
- Lake Katrine, NY
- Join Date
- Dec 2008
- Posts
- 349
Re: Paying to much in supplier shipping charges??
NY charges tax on freight also!
Isa - you know how they get when they get older - Throw the old dog his bone!!!
Where is Chris...no bust on Jim for his B-day?????
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03-12-2010 01:11 PM #40Regular Member
- Roy Hill
- Distributor (Owner)
- IMS Promotional Products
- Ocoee, FL
- Join Date
- Aug 2005
- Posts
- 309
Re: Paying to much in supplier shipping charges??
Jim, yeah I saw your earlier post about Bermuda, just having a little fun (at your expense
) But seriously, I hope you have a great time and Happy Birthday!
Talk about a thread taking a detour, my apologies to the OP
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