Paying for "Overs"?

[Gilligan]

I just outsourced 1,000 presentations folders to a company.

When I looked at my Amex bill I noticed that it seemed high.  So I sent an email about it.

He responded saying there were 100 overs and showed me how much that cost me.

Is this typical?  I ordered these through DistributorCentral and I did not see anything about such a thing.  I have seen where they allow for X spoilage and that if I need exact numbers they would charge more (not sure if it was this company that stated that, just saying I've seen such a thing.

[mk162]

yup, it's normal, but you can say that you will only allow/pay for x%.  these companies do it to increase sales.  There aren't that many misprints they have to worry about.

[Gilligan]

Is 10% excessive?

[mk162]

yeah, most companies do a 2-5%

[Gilligan]

This is what it states on THEIR website (not DC's website).

Overruns or Underruns

 Due to the number of production processes in the manufacture of your folder, it is not possible to determine the exact quantity we will complete. Please indicate your desired quantity using one of the following methods.

 "STANDARD TRADE PRACTICE" - Billed for the exact quantity shipped, not to exceed 10% over or under the quantity ordered.
 "NO OVERS" - Must be indicated on order. Order could run short by more than 10%. Billed for the exact quantity shipped.
 "EXACT QUANTITY" - Add 10% to the price for the special handling involved.
 "NO UNDERS" - Your order may run over by more than 10%. Billed for the exact quantity shipped.

[Socalfmf]

well...it states right there that they can ( and I think WILL ) print the 10% xtra....

read all the info and learn as much as you can about ASI companies before diving in head first...we learned this the first time we sold water bottles...they did 144 of them and the shipping was over 200 bucks...that is more than a dollar a bottle...customer was Effing pissed.....

sam

[Gilligan]

Well, Sam... I wasn't dealing direct.  I was using Distributor Central.

Which maybe I'm misunderstanding the point of DC.

[mk162]

Sam, did you quote the customer for shipping?

I usually have them ship on my account, it helps me get better rates and I don't pay through the nose for shipping.

[Socalfmf]

Gilligan

DC is a inbetween...again go to the source...heck we have ESP for ASI and we still check everything with the company we are purchasing it through...like you we learned the hard way

no we told them actual shipping...should have gotten that shipping quote to keep the customer informed...

[mk162]

$200 for 144, what sort of bottles were they?  That is the problem I have with a lot of the distributors, they don't make an effort to save on shipping cost by taping boxes together like BIC does.

You really have to do your homework on ASI orders, they get you where you least expect it.

[Socalfmf]

that is the problem..they ship using UPS daily rate...with that being said...you are getting ripped off and didnt even know it....I also recently did 72 mugs...their shipping quote was for 3 day $287...I said ship on my account...it was 98 bucks...big difference....

sam

[mk162]

i get that with bullet line all the time

[Gilligan]

FYI, I emailed him about the overages and the fact that they were not posted on DC and here is his response.

Sorry but yes the industry practice is 10% + or -.



Next time just put on the P.O.  (No Overs)



Or (max overs 5%)

I said, I certainly will do that.

[mk162]

It's industry standard to do that, but not by 10%.

[Gilligan]

I had said this much in my email to him.  I also stated that I feel like they were just upping their sales/numbers.

If you can go over OR under by 10% and you hit 10% that seems like either something went REALLY wrong when you set up the job or you were trying for over and over a LOT.