Sunday, June 12, 2011

Delivery Fuel Charge is Price Gouging

Over the last few years when you order something form a supplier you are starting to see a delivery fuel charge. When you ask your supplier what that charge is they will tell you the cost of petrol has increased causing suppliers to implement a fuel charge to cover the rising price of gas. That sounds like a fair answer to the problem so many people on the receiving end accept the fuel charge and move on. It's not much anyway, only around USD $6.00 so it seems acceptable in this economy. Before you accept this fuel charge; let's take a look at it. Most suppliers mark their products up from %3 to %50 sometimes even higher. They mark the products up based upon overhead to cover the running of their business. Now think about that… if they are marking products up to cover overhead isn't gas considered part of that overhead? I think it is and talking to many vendors they admit that the mark up covers the running of the business. We all know that the price of paper and plastic goods are going up so manufactures are looking to alternative sources of production so it's understandable the mark up from demand, now tack on the  %3 - %50+ suppliers mark-up or price increase to cover overhead. Where does the fuel charge come into play? Let's do some simple math and say that the supplier charges you a fuel charge of $6.00 per delivery. They have a portfolio of 1000 customers that orders once a month that's a profit of $6,000.00. Does that money go into a fuel fund? Don't believe it, that $6,000 is pure profit. Now take a look at companies like Epedx or ACME Paper that has way over 1000 orders a month and you're looking at a nice in pocket profit. The suppliers can argue the point till they are blue in the face, as a customer I fell the cost of fuel can be rolled into the marked up overhead. If I order around $8,000.00 a month in supplies I find it ridiculous that I get a fuel charge so your corporate executives can use it as play money. There needs to be a change in the mindsets of the customers and we need to stop accepting petty charges from companies gouge us so they can make a larger profit. The excuse of fuel costs to drain customers needs to be stopped. We all know the fuel charge can be rolled into the cost of the products we purchase at a very, very, very (did I say very) small mark up. I refuse to use a company that will charge me a fuel charge and you should also. Question the suppler and demand that the fuel charge be done away with. It's ridiculous, petty and uncalled for. I'm tired of hearing the excuse that they have to incorporate a fuel charge for rising fuel costs. Stop lining the pockets of corporations playing upon our ignorance.

Melvin Wylie

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