What if I tell you, the profit that you make on your product doesn’t even cover the cost of delivery? Imagine selling a product at $10 but the actual cost of servicing or delivering is $30! See how unprofitable the scenario is. The solution? Do your own cost to serve analysis.
Don’t know how? Watch this:
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Editor’s Note: This post was originally published in September 2019, under the title “Understanding Your Cost to Serve” in Logistics Bureau’s website.